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The Impact of Special Economic Zones on Exporting Behavior

Author

Listed:
  • Ronald B. Davies

    (University College Dublin)

  • Arman Mazhikeyev

    (University of Lincoln)

Abstract

"Using firm level data from Africa and Asia, we estimate the impact of being in a special economic zone (SEZ) on a firm’s probability of exporting, export intensity, and value of exports. At the extensive margin, we find that SEZ firms in open economies are 25% more likely to export than their non-SEZ counterparts, with a large negative effect in closed economies. At the intensive margin, we find that SEZs increase the value of exports, but only in countries with barriers to imports where the estimate increase is 3.6%. Thus, the estimated effect of introducing an SEZ can be meaningful, but is heavily contingent on the local economic environment."

Suggested Citation

  • Ronald B. Davies & Arman Mazhikeyev, 2019. "The Impact of Special Economic Zones on Exporting Behavior," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 11(1), pages 145-174, July.
    • Handle: RePEc:ren:journl:v:11:y:2019:i:1:p:145-174
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    Cited by:

    1. Fabrice Defever & José‐Daniel Reyes & Alejandro Riaño & Miguel Eduardo Sánchez‐Martín, 2019. "Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic," Economica, London School of Economics and Political Science, vol. 86(343), pages 532-568, July.
    2. Jacques Eric, Tamno Tekam & Joseph, Keneck-Massil, 2025. "Africa's participation in global value chains: What contribution can Special Economic Zones make?," International Economics, Elsevier, vol. 184(C).
    3. Joseph Owuondo, 2024. "Evaluating the Impact of Participatory Budgeting on Special Economic Zone Project Implementation," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(3s), pages 4861-4869, October.
    4. Rami Mikko Ahmed Galal, 2024. "Place-Based Preferential Policies and Firm Performance," Policy Research Working Paper Series 10781, The World Bank.
    5. Defever,Fabrice Fernand & Reyes,Jose Daniel & Riano,Alejandro & Sanchez Martin,Miguel Eduardo, 2016. "Does the elimination of export requirements in special economic zones affect export performance? evidence from the Dominican Republic," Policy Research Working Paper Series 7874, The World Bank.
    6. Ronald B. Davies & Rodolphe Desbordes, 2018. "Export Processing Zones and the Composition of Greenfield FDI," Working Papers 201807, School of Economics, University College Dublin.
    7. Nie, Liang & Nie, Cheng, 2025. "Does place-based policy encourage energy efficiency? Evidence from development zones in China," Energy Economics, Elsevier, vol. 150(C).
    8. Arbolino, Roberta & Boffardi, Raffaele & Bonasia, Mariangela & Capasso, Salvatore & De Simone, Luisa, 2025. "Imitation or learning: Exploring the drivers of Special economic zones," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 456-466.
    9. Grzegorz Kinelski & Karolina Mucha-Kuś & Jakub Stęchły & Zbigniew J. Makieła & Jacek Kamiński & Magdalena Stefańska, 2023. "The Impact of a Special Economic Zone Management on the Development of Modern Sectors and Technologies in a Polish Metropolis: The Smart City Context," Energies, MDPI, vol. 16(6), pages 1-19, March.
    10. Igor Bagayev & Ronald B. Davies, 2017. "The Impact of Protection on Observed Productivity Distributions," Working Papers 201705, School of Economics, University College Dublin.
    11. Yang Liu & Yidan Jin, 2022. "Special economic zones, export status, and firms’ productivity: Theory and evidence from China," Review of Development Economics, Wiley Blackwell, vol. 26(3), pages 1338-1360, August.

    More about this item

    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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