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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.

Suggested Citation

  • Bhatt, Antra & Puri, Manas & Appolloni, Andrea, 2011. "SEZ proliferation in India: are the objectives being realized?," MPRA Paper 35095, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35095
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    File URL: https://mpra.ub.uni-muenchen.de/35095/1/MPRA_paper_35095.pdf
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    References listed on IDEAS

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    1. Aradhna Aggarwal, 2008. "Regional Economic Integration and FDI in South Asia - Prospects and Problems," Macroeconomics Working Papers 22141, East Asian Bureau of Economic Research.
    2. 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.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    4. 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, March.
    5. 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, January.
    6. Xie Wei, 2000. "Acquisition Of Technological Capability Through Special Economic Zones (Sezs): The Case Of Shenzhen Sez," Industry and Innovation, Taylor & Francis Journals, vol. 7(2), pages 199-221.
    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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    Cited by:

    1. Lectard, Pauline & Rougier, Eric, 2018. "Can Developing Countries Gain from Defying Comparative Advantage? Distance to Comparative Advantage, Export Diversification and Sophistication, and the Dynamics of Specialization," World Development, Elsevier, vol. 102(C), pages 90-110.

    More about this item

    Keywords

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

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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