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Drivers and Barriers for Successful Special Economic Zones (SEZs): Case of SEZs under China Pakistan Economic Corridor

Author

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  • Saira Naeem

    (National Institute of Transportation SCEE, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan)

  • Abdul Waheed

    (National Institute of Transportation SCEE, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan)

  • Muhammad Naeem Khan

    (Department of Business Administration, IQRA University, Islamabad 44000, Pakistan)

Abstract

Over the last three decades, special economic zones (SEZs) have given new impetus to the ever-growing export-oriented industrialization in developing countries. Where various economies have benefited from SEZs, many zones have ended up becoming enclaves with trifling advantage. The SEZs in Pakistan have experienced the same fate and have failed to contribute to exports, employment, and creating linkages with the domestic economy. Recently under the China Pakistan Economic Corridor (CPEC), SEZs are proposed to be set up in Pakistan, with a hope to fuel the stuttering economy. However, it is pertinent first to understand the local context and device policies considering stakeholders’ perspectives. This study aims to identify the factors for the successful implementation of SEZs derived from the regional context of Pakistan. In-depth interviews are conducted from the most relevant stakeholders, who have been involved in the development of SEZs. The results pointed towards the removal of political influence over zones and government taking the lead role in deciding the types of industry to be invited in these zones. Each zone should have a clear vision of development based on its locational advantage. The zone promotions should be based on competitiveness rather than fiscal incentives. Joint ventures and PPP should be encouraged inside the zones for sustainable operations.

Suggested Citation

  • Saira Naeem & Abdul Waheed & Muhammad Naeem Khan, 2020. "Drivers and Barriers for Successful Special Economic Zones (SEZs): Case of SEZs under China Pakistan Economic Corridor," Sustainability, MDPI, vol. 12(11), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:11:p:4675-:d:368673
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    2. Neelum Nigar & Unbreen Qayyum, 2021. "Special Economic Zones and The State of Pakistan�s Economy," PIDE Knowledge Brief 2021:27, Pakistan Institute of Development Economics.
    3. Achmad Fauzi & Martani Huseini & Amy Yayuk Sri Rahayu, 2022. "Designing Strategies to Improve the Competitiveness of Special Economic Zones," Technium Social Sciences Journal, Technium Science, vol. 31(1), pages 22-43, May.
    4. 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.
    5. Tritto, Angela & Camba, A., 2022. "State-facilitated Industrial Parks in the Belt and Road Initiative: Towards a framework for understanding the localization of the Chinese development model," World Development Perspectives, Elsevier, vol. 28(C).
    6. Acheampong, Vera & Owusu, Nana Yaw Agyeman & Kupzig, Nina, 2023. "Special Economic Zones in Ghana: A case study of enclaves in Tema, Dawa and Sekondi," KCG Working Papers 26, Kiel Centre for Globalization (KCG).

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