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SEZs and economic transformation:towards a developmental approach

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  • Aradhna Aggarwal

Abstract

This study presents a three-pillared analytical framework for the success factors and development outcomes of special economic zones (SEZs). The core argument is that countries that adopt a well-structured approach towards SEZs that they can align with the broader development strategy, executive effectively, and continuously evaluate and manoeuvre over time, are more successful in achieving SEZ-led economic transformation than others. This requires strategic bureaucratic competencies to make the right choices and set clear strategic directions; strategic bureaucratic learning to dynamically and interactively engage in adjusting the strategies when needed; and strategic bureaucratic strengths to implement the strategy effectively. These elements in turn need an effective political leadership with a strong development focus that can energise and motivate bureaucracies. The study revisits the experience of successful, not-so-successful and least successful countries across the globe within this framework and concludes by raising some pertinent concerns about SEZ-led development strategy that emerge from the analysis.

Suggested Citation

  • Aradhna Aggarwal, . "SEZs and economic transformation:towards a developmental approach," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:tncjou:2
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    File URL: https://unctad.org/system/files/official-document/diaeia2019d2a2_en.pdf
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    References listed on IDEAS

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    1. Stefano Ponte & Timothy J. Sturgeon & Mark P. Dallas, 2019. "Governance and power in global value chains," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 6, pages 120-137, Edward Elgar Publishing.
    2. Rodríguez-Pose, Andrés & Frick, Susanne & Wong, Michael D., 2018. "Towards economically dynamic Special Economic Zones in emerging countries," CEPR Discussion Papers 12840, C.E.P.R. Discussion Papers.
    3. Ricardo Hausmann & Juan Obach & Miguel Angel Santos, 2016. "Special Economic Zones in Panama: Technology Spillovers from a Labor Market Perspective," CID Working Papers 326, Center for International Development at Harvard University.
    4. Rajah Rasiah & Vicki Crinis & Hwok-Aun Lee, 2015. "Industrialization and labour in Malaysia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(1), pages 77-99, January.
    5. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    6. 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. Andrés Rodríguez‐Pose & Federico Bartalucci & Susanne A. Frick & Amelia U. Santos‐Paulino & Richard Bolwijn, 2022. "The challenge of developing special economic zones in Africa: Evidence and lessons learnt," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(2), pages 456-481, April.
    2. 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.
    3. Douglas Zhihua Zeng, 2022. "What Determines the Heterogeneous Performance of Special Economic Zones? Evidence from Sub‐Sahara Africa," Global Policy, London School of Economics and Political Science, vol. 13(4), pages 495-506, September.

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