IDEAS home Printed from https://ideas.repec.org/p/unu/wpaper/wp-2017-15.html
   My bibliography  Save this paper

Industrial clusters: The case for Special Economic Zones in Africa

Author

Listed:
  • Carol Newman
  • John Page

Abstract

Firms tend to cluster in close geographic proximity to each other to benefit from reduced transport costs, shared inputs, and productivity spillovers due to learning and technology transfers. Evidence from low-income countries suggests that such agglomeration economies may be substantial in endogenously formed clusters. This raises the question of whether spatial industrial policies can be designed to facilitate clustering. In this paper, we consider the case for creating Special Economic Zones (SEZs) in Africa.

Suggested Citation

  • Carol Newman & John Page, 2017. "Industrial clusters: The case for Special Economic Zones in Africa," WIDER Working Paper Series wp-2017-15, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2017-15
    as

    Download full text from publisher

    File URL: https://www.wider.unu.edu/sites/default/files/wp2017-15.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miyagiwa, Kaz F., 1986. "A reconsideration of the welfare economics of a free-trade zone," Journal of International Economics, Elsevier, vol. 21(3-4), pages 337-350, November.
    2. Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, vol. 20(2), pages 189-212, September.
    3. Chhair, Sokty & Newman, Carol, 2014. "Clustering, competition, and spillover effects: Evidence from Cambodia," WIDER Working Paper Series 065, World Institute for Development Economic Research (UNU-WIDER).
    4. Emma Howard & Carol Newman & Finn Tarp, 2016. "Measuring industry coagglomeration and identifying the driving forces," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 1055-1078.
    5. Page, John & Tarp, Finn (ed.), 2017. "The Practice of Industrial Policy: Government-Business Coordination in Africa and East Asia," OUP Catalogue, Oxford University Press, number 9780198796954.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    7. 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.
    8. Farole, Thomas & Moberg, Lotta, 2014. "It worked in China, so why not in Africa? The political economy challenge of Special Economic Zones," WIDER Working Paper Series 152, World Institute for Development Economic Research (UNU-WIDER).
    9. Justin Yifu Lin, 2013. "From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries," International Economic Association Series, in: Joseph E. Stiglitz & Justin Lin Yifu & Ebrahim Patel (ed.), The Industrial Policy Revolution II, chapter 1, pages 50-70, Palgrave Macmillan.
    10. Bräutigam, Deborah & Tang, Xiaoyang, 2014. "“Going Global in Groups”: Structural Transformation and China’s Special Economic Zones Overseas," World Development, Elsevier, vol. 63(C), pages 78-91.
    11. Mohamed Ayadi & Wided Matoussi, 2014. "Working Paper - 213 - Disentangling the Pattern of Geographic Concentration in Tunisian Manufacturing Industries," Working Paper Series 2149, African Development Bank.
    12. Diego Puga, 2010. "The Magnitude And Causes Of Agglomeration Economies," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 203-219, February.
    13. Tetsushi Sonobe & Keijiro Otsuka, 2014. "Cluster-Based Industrial Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-38511-6, December.
    14. Sutton, John, 2012. "Competing in Capabilities: The Globalization Process," OUP Catalogue, Oxford University Press, number 9780199274536.
    15. Abel Kinyondo & Carol Newman & Finn Tarp, 2016. "The role and effectiveness of Special Economic Zones in Tanzania," WIDER Working Paper Series 122, World Institute for Development Economic Research (UNU-WIDER).
    16. World Bank, 2009. "Geography in Motion: World Development Report 2009 (excerpt)," Transnational Corporations Review, Ottawa United Learning Academy, vol. 1(3), pages 40-46, September.
    17. Keijiro Otsuka, 2006. "Cluster‐Based Industrial Development: A View From East Asia," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 361-376, September.
    18. Howard, Emma & Newman, Carol & Rand, John & Tarp, Finn, 2014. "Productivity-enhancing manufacturing clusters: Evidence from Vietnam," WIDER Working Paper Series 071, World Institute for Development Economic Research (UNU-WIDER).
    19. Ayadi, Mohamed & Mattoussi, Wided, 2014. "Disentangling the pattern of geographic concentration in Tunisian manufacturing industries," WIDER Working Paper Series 072, World Institute for Development Economic Research (UNU-WIDER).
    20. Howard, Emma & Carol, Newman & Thijssen, Jacco, 2011. "Are Spatial Networks of Firms Random? Evidence from Vietnam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).
    21. repec:unu:wpaper:wp2012-85 is not listed on IDEAS
    22. Emma Howard & Carol Newman & Jacco J. J. Thijssen, 2011. "Are Spatial Networks of Firms Random?: Evidence from Vietnam," WIDER Working Paper Series wp-2011-087, World Institute for Development Economic Research (UNU-WIDER).
    23. Andrew Schrank, 2001. "Export Processing Zones: Free Market Islands or Bridges to Structural Transformation?," Development Policy Review, Overseas Development Institute, vol. 19(2), pages 223-242, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Adu-Gyamfi & Simplice A. Asongu & Tinaye S. Mmusi & Herbert Wamalwa & Madei Mangori, 2020. "A comparative study of export processing zones in the wake of sustainable development goals: Cases of Botswana, Kenya, Tanzania and Zimbabwe," Research Africa Network Working Papers 20/025, Research Africa Network (RAN).
    2. Athukorala, Prema-chandra & Narayanan, Suresh, 2018. "Economic corridors and regional development: The Malaysian experience," World Development, Elsevier, vol. 106(C), pages 1-14.
    3. Mwanda Phiri & Shimukunku Manchishi, 2020. "Special economic zones in Southern Africa: white elephants or latent drivers of growth and employment?: The case of Zambia and South Africa," WIDER Working Paper Series wp-2020-160, World Institute for Development Economic Research (UNU-WIDER).
    4. Serigne Bassirou Lo & Lassana Cissokho, 2023. "Financial development, institutions and industrialization in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 35(2), pages 152-164, June.
    5. Konté,Maty & Kouame,Wilfried Anicet Kouakou & Mensah,Emmanuel Buadi, 2021. "Structural Reforms and Productivity Growth in Developing Countries : Intra- or Inter-Reallocation Channel ?," Policy Research Working Paper Series 9733, The World Bank.
    6. Fernandes,Ana Margarida & Forero,Alejandro & Maemir,Hibret Belete & Mattoo,Aaditya, 2019. "Are Trade Preferences a Panacea? : The African Growth and Opportunity Act and African Exports," Policy Research Working Paper Series 8753, The World Bank.
    7. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    8. Abagna, Matthew Amalitinga, 2023. "Special Economic Zones and Local Economic Activities in Ethiopia," MPRA Paper 117427, University Library of Munich, Germany.
    9. 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.
    10. Richard Chauke, 2022. "Special Economic Zones: Is it an Elixir for economic growth in South Africa," Technium Social Sciences Journal, Technium Science, vol. 33(1), pages 16-27, July.
    11. Abel Kinyondo & Carol Newman & Finn Tarp, 2016. "The role and effectiveness of Special Economic Zones in Tanzania," WIDER Working Paper Series wp-2016-122, World Institute for Development Economic Research (UNU-WIDER).
    12. 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.
    13. Jiabo Xu & Xingping Wang, 2020. "Reversing Uncontrolled and Unprofitable Urban Expansion in Africa through Special Economic Zones: An Evaluation of Ethiopian and Zambian Cases," Sustainability, MDPI, vol. 12(21), pages 1-20, November.
    14. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).
    15. Lin, Boqiang & Sai, Rockson, 2022. "Has mining agglomeration affected energy productivity in Africa?," Energy, Elsevier, vol. 244(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carol Newman & John Page, 2017. "Industrial clusters: The case for Special Economic Zones in Africa," WIDER Working Paper Series 015, World Institute for Development Economic Research (UNU-WIDER).
    2. Emma Howard & Carol Newman & Finn Tarp, 2016. "Measuring industry coagglomeration and identifying the driving forces," Journal of Economic Geography, Oxford University Press, vol. 16(5), pages 1055-1078.
    3. Marco Sanfilippo & Adnan Seric, 2016. "Spillovers from agglomerations and inward FDI: a multilevel analysis on sub-Saharan African firms," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(1), pages 147-176, February.
    4. Thi Bich Tran & Hai Anh La, 2018. "Agglomeration Effects: Productivity of the Informal Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 54(2), pages 292-311, February.
    5. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).
    6. Marco Sanfilippo & Adnan Seric, 2014. "Spillovers from agglomerations and inward FDI. A Multilevel Analysis on SSA domestic firms," RSCAS Working Papers 2014/76, European University Institute.
    7. Emma Howard, 2017. "Social networks, geographic proximity, and firm performance in Vietnam," WIDER Working Paper Series wp-2017-69, World Institute for Development Economic Research (UNU-WIDER).
    8. Keijiro Otsuka, 2020. "Strategy for Cluster-Based Industrial Development in Developing Countries," Discussion Papers 2019, Graduate School of Economics, Kobe University.
    9. Emma Howard, 2017. "Social networks, geographic proximity, and firm performance in Vietnam," WIDER Working Paper Series 069, World Institute for Development Economic Research (UNU-WIDER).
    10. Sam Jones & John Page & Abebe Shimeles & Finn Tarp & John Page & Abebe Shimeles, 2015. "Aid, Employment and Poverty Reduction in Africa," African Development Review, African Development Bank, vol. 27(S1), pages 17-30, October.
    11. Alfaro, Laura & Chen, Maggie Xiaoyang, 2014. "The global agglomeration of multinational firms," Journal of International Economics, Elsevier, vol. 94(2), pages 263-276.
    12. Laura Alfaro & Maggie X. Chen, 2016. "Location Fundamentals, Agglomeration Economies, and the Geography of Multinational Firms," Working Papers 2016-18, The George Washington University, Institute for International Economic Policy.
    13. Chung, Yessica C.Y., 2012. "Ethnic Networks and Technical Knowledge Learning in Industrial Clusters," Working Papers 37, JICA Research Institute.
    14. Hoang, Manh Cuong & Schiller, Daniel, 2023. "Which firms benefit the most from agglomeration? New evidence from an emerging country with consistent measure of productivity," Journal of Asian Economics, Elsevier, vol. 86(C).
    15. Xu, Cheng-Gang & Guo, Di & Jiang, Kun & Yang, Xiyi, 2017. "Clustering, Growth, and Inequality in China," CEPR Discussion Papers 12543, C.E.P.R. Discussion Papers.
    16. Stef Proost & Jacques-François Thisse, 2019. "What Can Be Learned from Spatial Economics?," Journal of Economic Literature, American Economic Association, vol. 57(3), pages 575-643, September.
    17. John Rand & Finn Tarp & Neda Trifković & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).
    18. repec:unu:wpaper:wp2012-084 is not listed on IDEAS
    19. Ali, Merima & Peerlings, Jack H.M., 2011. "Farm Households Entry and Exit Into and From Non-farm Enterprises in Rural Ethiopia: Does Clustering Play a Role?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114220, European Association of Agricultural Economists.
    20. Page, John, 2012. "Aid, Structural Change and the Private Sector in Africa," WIDER Working Paper Series 021, World Institute for Development Economic Research (UNU-WIDER).
    21. John Page, 2018. "Rowing against the current: Diversification in Africa's resource-rich economies," WIDER Working Paper Series wp-2018-68, World Institute for Development Economic Research (UNU-WIDER).

    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:unu:wpaper:wp-2017-15. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Siméon Rapin (email available below). General contact details of provider: https://edirc.repec.org/data/widerfi.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.