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Do Special Economic Zones foster economic development?: Evidence from South Africa

Author

Listed:
  • Matthew Amalitinga Abagna
  • Ronald B. Davies
  • Nadine Riedel
  • Nora Strecker
  • Biniyam Gezahegn Worku

Abstract

This paper evaluates the effectiveness of Special Economic Zones (SEZs) as instruments of economic development in South Africa. Drawing on rich administrative tax data and employing a difference-in-differences identification strategy, we examine how SEZ participation affects firm-level outcomes, including exports, investment, employment, and productivity. Contrary to the common expectation that SEZ participation boosts firm performance, the results suggest that SEZ firms generally underperform their non-SEZ counterparts.

Suggested Citation

  • Matthew Amalitinga Abagna & Ronald B. Davies & Nadine Riedel & Nora Strecker & Biniyam Gezahegn Worku, 2026. "Do Special Economic Zones foster economic development?: Evidence from South Africa," WIDER Working Paper Series wp-2026-91, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2026-91
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