IDEAS home Printed from https://ideas.repec.org/a/ris/jecdev/023658.html

The Effect Of Special Economic Zones On Regional Economic Growth In Indonesia: A Staggered Difference-In-Differences Study

Author

Listed:
  • Siti Aubrey Salsabila Tisarani Putri

    (The Audit Board of Indonesia, Indonesia)

  • Muhammad Rafi Bakri

    (The Audit Board of Indonesia, Indonesia)

  • Yohanes Rama Adiwicaksana

    (The Coordinating Ministry in Economic Affairs of Indonesia, Indonesia)

Abstract

Special Economic Zones (SEZs) in Indonesia are designed to stimulate regional growth and industrial competitiveness through fiscal incentives and infrastructure development. This study evaluates the impact of SEZs establishment on regional economic performance using a Staggered Difference-in-Differences approach across 33 provinces from 2000 to 2023. The results reveal that the estimated effects of SEZs designation are limited in the early years of exposure and become impactful in long run. The analysis also shows heterogeneous treatment effects across cohorts, with some cohorts experiencing stronger and more sustained post-treatment growth, while others exhibit weaker or stagnant responses. These differences may reflect variations in industrial development, infrastructure readiness, and institutional capacity. Overall, the findings highlight the importance of sustained governance and local industrial integration in strengthening the long-term effectiveness of SEZs.

Suggested Citation

  • Siti Aubrey Salsabila Tisarani Putri & Muhammad Rafi Bakri & Yohanes Rama Adiwicaksana, 2026. "The Effect Of Special Economic Zones On Regional Economic Growth In Indonesia: A Staggered Difference-In-Differences Study," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 51(3), pages 1-17, September.
    • Handle: RePEc:ris:jecdev:023658
    DOI: 10.35866/caujed.2026.51.3.001
    as

    Download full text from publisher

    File URL: https://jed.cau.ac.kr/archives/51-3/51-3-1.pdf
    File Function: full text
    Download Restriction: None
    File URL: https://libkey.io/10.35866/caujed.2026.51.3.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:jecdev:023658. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jo A Jeong (email available below). General contact details of provider: https://edirc.repec.org/data/eccaukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.