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

IMF Working Papers, August 21, 2020

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

Examines the socio-economic impact of special economic zones (SEZs) in Cambodia, a place-based policy established in 2005.
Uses a database on existing and future SEZs in Cambodia matched with household surveys at the district level.
Documents stylized facts on SEZs in a low-income country setting.

Constructs an alternative control group including:
- future SEZ program participants, and
- districts adjacent to SEZ hosts.
Employs a propensity score weighting technique.
Matches SEZ database with household surveys at the district level to identify causal effects.

Labor and gender:
- Entry of SEZs disproportionately benefits female workers.
Income distribution:
- Leads to a decline of income inequality at a district level.
Land and wages:
- Land values in SEZ districts tend to rise.
- Wage levels remain largely unchanged relative to other districts.
Additional analyses:
- Tests for socio-economic spillovers to surrounding areas.
- Tests 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