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Special Economic Zones: What Have We Learned?

Author

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  • Farole, Thomas

    (World Bank)

Abstract

It has been more than 50 years since the establishment of the first modern special economic zones. During this time, SEZs have been credited with underpinning the dramatic export-oriented growth of China and other East Asian countries. While they remain a controversial instrument, policy makers appear to be increasingly attracted to economic zones. Since the mid 1980s, the number of new zones has grown rapidly, with significant expansion in developing countries. But in this postcrisis environment, the context in which zones operate is changing. Increasingly, the effectiveness with which they are designed, implemented, and managed will determine their success. This note outlines key lessons that have emerged from the experiences of zone programs in developing countries over recent decades.

Suggested Citation

  • Farole, Thomas, 2011. "Special Economic Zones: What Have We Learned?," World Bank - Economic Premise, The World Bank, issue 64, pages 1-5, September.
    • Handle: RePEc:wbk:prmecp:ep64
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    1. Thomas Farole, 2011. "Special Economic Zones in Africa : Comparing Performance and Learning from Global Experience," World Bank Publications - Books, The World Bank Group, number 2268, December.
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    Cited by:

    1. Moberg, Lotta, 2015. "The political economy of special economic zones," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 167-190, March.
    2. Fernando Gómez Zaldívar & Edmundo Molina & Miguel Flores & Manuel de Jesús Gómez Zaldívar, 2019. "Complejidad económica de las zonas económicas especiales en México: Oportunidades de diversificación y sofisticación industrial. (Economic Complexity of the Special Economic Zones in Mexico: Opportuni," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 1-40, May.
    3. Jana Maria Kleibert, 2015. "Islands of globalisation: Offshore Services and the Changing Spatial Divisions of Labour," Environment and Planning A, , vol. 47(4), pages 884-902, April.
    4. Oliver Klein & Piotr Pachura & Christine Tamasy, 2016. "Globalizing Production Networks," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 13(2), pages 81-89, June.
    5. Yeseul Hyun & Shree Ravi, 2018. "Place-based Development: Evidence from Special Economic Zones in India," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-306, Boston University - Department of Economics.
    6. Ana Fernandes & Heiwai Tang, 2012. "Learning from Neighbors' Export Activities: Evidence from Exporters' Survival," Development Working Papers 337, Centro Studi Luca d'Agliano, University of Milano, revised 16 Jul 2012.
    7. Götz, Marta & Jankowska, Barbara, 2022. "When reality diverges from expectations… Industry 4.0, FDI and post-transition economy," Technology in Society, Elsevier, vol. 68(C).
    8. Marcus Noland, 2019. "North Korea: Sanctions, Engagement and Strategic Reorientation," Asian Economic Policy Review, Japan Center for Economic Research, vol. 14(2), pages 189-209, July.
    9. Hao, Wu & Abbas, Qaiser & Ahmad, Ishtiaq & Alharthi, Majed & Hanif, Imran & Taghizadeh-Hesary, Farhad, 2021. "Institutional efficiency and utility reform performance: An evidence from electricity performance in South & East Asia," Economic Analysis and Policy, Elsevier, vol. 72(C), pages 549-561.
    10. América Ivonne Zamora Torres, 2019. "Cambio tecnológico y eficiencia logística del transporte de carga internacional a través del modelo DEA. (Technological change and efficiency of the logistics system of international freight through t," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 183-204, November.
    11. Haggard, Stephan & Noland, Marcus, 2016. "Hard Target: Sanctions, Inducements, and the Case of North Korea," MPRA Paper 105812, University Library of Munich, Germany.
    12. Marta Castilho & Marta Menéndez & Aude A. Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone?," Working Papers halshs-01245394, HAL.
    13. Lord, Montague, 2012. "Evaluation of Support to Lao PDR’s Special Economic Zones (SEZs)," MPRA Paper 61053, University Library of Munich, Germany.
    14. Tefera,Girum Abebe & Buehren,Niklas & Goldstein,Markus P., 2020. "Short-Run Welfare Impacts of Factory Jobs : Experimental Evidence from Ethiopia," Policy Research Working Paper Series 9325, The World Bank.
    15. Lyttleton, Chris, 2020. "Borderline well-being: Mental health in a development zone," Social Science & Medicine, Elsevier, vol. 245(C).
    16. Louisiana Cavalcanti Teixeira, 2020. "Labor standards and social conditions in free trade zones: the case of the Manaus free trade zone," Post-Print hal-02997102, HAL.
    17. Teixeira, Louisiana Cavalcanti, 2020. "Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-41.
    18. Mamo Mihretu & Gabriela Llobet, 2017. "Looking Beyond the Horizon," World Bank Publications - Reports 28334, The World Bank Group.

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    More about this item

    Keywords

    SEZ; special economic zone; shenzhen; singapore; economic development; industrialization; employment; exports; exprot-led growth; trade;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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