Socio-Economic Spillovers from Special Economic Zones: Evidence from Cambodia

August 21, 2020

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Mariya Brussevich. Socio-Economic Spillovers from Special Economic Zones: Evidence from Cambodia, (USA: International Monetary Fund, 2020) accessed November 16, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This study examines the socio-economic impact of special economic zones (SEZs) in Cambodia---a prominent place-based policy established in 2005. The paper employs a database on existing and future SEZs in Cambodia with matched household surveys at the district level and documents stylized facts on SEZs in a low-income country setting. To identify causal effects of the SEZ program, the paper (i) constructs an alternative control group including future SEZ program participants and districts adjacent to SEZ hosts; and (ii) employs a propensity score weighting technique. The study finds that entry of SEZs disproportionately benefits female workers and leads to a decline of income inequality at a district level. However, the findings also suggest that land values in SEZ districts tend to rise while wage levels remain largely unchanged relative to other districts. In addition, the paper tests for socio-economic spillovers to surrounding areas and for agglomeration effects associated with clusters of multiple SEZs.

Subject: Education, Employment, Gender, Income, Income inequality, Labor, Labor markets, National accounts, Wages, Women

Keywords: Employment, Foreign Direct Investment, Impact of special economic zones, Income, Income inequality, Labor markets, Low-Income Country, Place-Based Policy, Policy implication, Program participation, Propensity score weighting technique, SEZ developer, SEZ district, SEZ effect, SEZ entry, SEZ firm, SEZ intensity, SEZ location, SEZ program, SEZ program participation, SEZ trend, Special Economic Zones, Tagged SEZ database, Wages, Women, WP

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/170
Stock No:

WPIEA2020170
ISBN:

9781513554457
ISSN:

1018-5941

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