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SEZs and economic transformation:towards a developmental approach

Author

Listed:
  • 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?repec
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    References listed on IDEAS

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    2. Ricardo Hausmann & Juan Obach & Miguel Angel Santos, 2016. "Special Economic Zones in Panama: Technology Spillovers from a Labor Market Perspective," Growth Lab Working Papers 86, Harvard's Growth Lab.
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    5. Susanne A. Frick & Andrés Rodríguez-Pose & Michael Wong, 2018. "Towards economically dynamic Special Economic Zones in emerging countries," Papers in Evolutionary Economic Geography (PEEG) 1816, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2018.
    6. repec:wbk:wbpubs:2268 is not listed on IDEAS
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    Cited by:

    1. Susanne A. Frick & Imane Radouane, . "Special economic zones and entrepreneurship: A new path forward for SEZs in Africa?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    2. 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.
    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.
    4. Aradhna Aggarwal, 2023. "How special are special economic zones: Evidence from South Asia," The World Economy, Wiley Blackwell, vol. 46(8), pages 2361-2382, August.
    5. Irwanda Wisnu Wardhana & Indri Riesfandiari & Erizal Jamal & Vyta W. Hanifah & Pihri Pihri & Felix Wisnu Handoyo & Nugroho Purwono & Rizky Prayogo Ramadhan & Budhi Setyawan & Michal Placek & Bakri Pra, 2025. "Does a special economic zone impact the surrounding economy? The case study of Kendal, Indonesia," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-17, December.
    6. 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.
    7. Heru Iskhan & I. Gusti Ayu Ketut R.H & Hartiwiningsih, 2025. "The Current State of Legal Governance in the Batam Free Trade Zone: Opportunities for Improvement," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(5), pages 454-468, May.
    8. Selim Raihan & FNU Jonaed & Md. Tuhin Ahmed, 2024. "Impact of Stimulus Packages on Business Recovery During the COVID-19 Pandemic in Bangladesh," Journal of South Asian Development, , vol. 19(2), pages 169-198, August.

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