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SEZ proliferation in India: are the objectives being realized?

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  • Bhatt, Antra
  • Puri, Manas
  • Appolloni, Andrea

Abstract

This paper analyzes if the industrial policy framework of the Indian Government with regard to the proliferation of SEZs has satisfied its aims and objectives. The analysis however, shows otherwise. The empirical results show that the policy of the Indian Government has been lopsided, wherein the concentration of SEZs has increased in States which face lower levels of unemployment and a comparably high level of FDI inflow. Further, the concentration of the SEZs has been restricted majorly to the IT industry resulting in rigidity in the export mix. Policy implications hint towards a diversification of the SEZ industry portfolio and in increasing the size and therefore, the economic impact of these zones.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35095.

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Date of creation: 29 Nov 2011
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Handle: RePEc:pra:mprapa:35095

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Keywords: Indian Industrial Policy; FDI; Unemployment; Export; Economic Development;

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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Aradhna Aggarwal, 2010. "Regional Economic Integration and FDI in South Asia : Prospects and Problems," Working Papers id:2691, eSocialSciences.
  3. Edward M. Graham, 2004. "Do export processing zones attract FDI and its benefits," International Economics and Economic Policy, Springer, vol. 1(1), pages 87-103, 03.
  4. Filip Abraham & Jozef Konings & Veerle Slootmaekers, 2010. "FDI spillovers in the Chinese manufacturing sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 18(1), pages 143-182, 01.
  5. Xie Wei, 2000. "Acquisition Of Technological Capability Through Special Economic Zones (Sezs): The Case Of Shenzhen Sez," Industry & Innovation, Taylor and Francis Journals, vol. 7(2), pages 199-221.
  6. 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.
  7. Aggarwal, Aradhna, 2010. "Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India," MPRA Paper 20902, University Library of Munich, Germany.
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