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PROMOTING AGGLOMERATION ECONOMIES AND INDUSTRIAL CLUSTERING THROUGH SEZs: EVIDENCE FROM INDIA

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  • ARADHNA AGGARWAL

    (Department of Business Economics, South Campus, University of Delhi, India)

Abstract

This paper argues that traditional theoretical approaches to SEZs are unable to adequately explain the rationale and economic contribution of SEZs in India and proposes an alternative approach based on the economics of agglomeration, in general, and industrial clustering, in particular. It argues that although SEZs are not treated as clusters in the SEZ literature, they share characteristics with the latter. It uses the proposed approach to evaluate the role of SEZs in promoting cluster-based industrialisation and entrepreneurship in the country. The analysis presented in the paper is based on observations during field visits to selected operational SEZs across nine states and in-depth interviews with bureaucrats, developers, entrepreneurs and employees.

Suggested Citation

  • Aradhna Aggarwal, 2011. "PROMOTING AGGLOMERATION ECONOMIES AND INDUSTRIAL CLUSTERING THROUGH SEZs: EVIDENCE FROM INDIA," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 201-227.
    • Handle: RePEc:wsi:jicepx:v:02:y:2011:i:02:n:s1793993311000282
    DOI: 10.1142/S1793993311000282
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    References listed on IDEAS

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    1. Takayoshi Kusago & Tzannatos, Zafiris, 1998. "Export processing zones : a review in need of update," Social Protection Discussion Papers and Notes 20046, The World Bank.
    2. Feenstra Robert C & Hanson Gordon H. & Lin Songhua, 2004. "The Value of Information in International Trade: Gains to Outsourcing through Hong Kong," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-37, August.
    3. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, December.
    4. Mukhopadhyay, Partha & Pradhan, Kanhu Charan, 2009. "Location of SEZs and Policy Benefits What Does the Data Say?," MPRA Paper 24333, University Library of Munich, Germany.
    5. Madani, Dorsati, 1999. "A review of the role and impact of export processing zones," Policy Research Working Paper Series 2238, The World Bank.
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    Cited by:

    1. M.R. Narayana, 2014. "Growth Effects of Industrial Clusters," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 71-92, March.
    2. 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.
    3. Antra Bhatt & Manas Puri & Andrea Appolloni, 2012. "SEZ Proliferation in India: Are the Objectives Being Realized?," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(1), pages 79-88, September.
    4. Rajneesh Narula & James X. Zhan, . "Using special economic zones to facilitate development: policy implications," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

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    More about this item

    Keywords

    SEZs; India; clusters; agglomeration economies; F13; F14; O18;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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