IDEAS home Printed from https://ideas.repec.org/p/sch/wpaper/274.html
   My bibliography  Save this paper

Special Economic Zones in India: Are These Enclaves Efficient?

Author

Listed:
  • Malini L Tantri

    () (Institute for Social and Economic change)

Abstract

The contemporary debate on the SEZ policy has been quite fierce but the focus has been mostly on the issues pertaining to the establishment, sanctioning procedures, land grabbing and protests against the SEZ policy. In the melee, the major issue of economic utility (if any) of SEZs is forgotten or not bothered about. It is known that the laudable objectives of the SEZ policy promise to improve the efficiency in trade and an increase in the production of tradable goods in order to attract foreign exchange. It is necessary to question if this objective has been achieved in respect of implementation. In this paper, along with an analysis of the issue of efficiency of SEZs within the framework of stochastic production frontier technique, we have tried to address the questions raised above. Although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000-01), it is far below the threshold level as identified in the literature, thus, indicating a larger scope for improvement in efficiency of the existing enclaves. Of the seven conventional SEZs, Santacruz SEZ farer relatively better than others operating on the same production frontier in terms of performance. Besides, one also can observe the emerging contradiction between better export earning zones and efficient zones, which might as well prove a challenge to the policymakers. On the determinants side, besides policy intervention large geographical area accompanied by clustering of units is found to have impacted positively the efficiency scores of these enclaves.

Suggested Citation

  • Malini L Tantri, 2012. "Special Economic Zones in India: Are These Enclaves Efficient?," Working Papers 274, Institute for Social and Economic Change, Bangalore.
  • Handle: RePEc:sch:wpaper:274
    as

    Download full text from publisher

    File URL: http://www.isec.ac.in/WP%20275%20-%20Baishali_delayed%20marriage%2015%20sep.pdf
    Download Restriction: no

    More about this item

    Keywords

    Special Economic Policy; India;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:sch:wpaper:274. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand). General contact details of provider: http://edirc.repec.org/data/iseccin.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.