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Special Economic Zones: Is it an Elixir for economic growth in South Africa

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  • Richard Chauke

    (University of Limpopo, Department of Public Administration)

Abstract

With the introduction of democracy in 1994, South Africa was faced with significant issues that necessitated action to improve the levels of domestic and foreign direct investments required to accelerate economic growth. Moreover, the South African economy comprised a narrow range of exports and an over-dependence on primary production. These challenges hindered the growth within the country as well as the continent. The emergence of Special economic zones (SEZs) internationally as a policy to support industrial development targeted at incentivising economic and infrastructure development based on specific geographical areas and responding to the needs of a particular local area. This is especially useful when the government wants to extend incentives for particular activities outside designated zones. This paper is conceptual and seeks to make a critical analysis of the contribution of SEZ to the country's economy through the use of a literature review. The article further points out the extent to which jobs, foreign direct investments, and employment were triggered by SEZ use.

Suggested Citation

  • 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.
    • Handle: RePEc:tec:journl:v:33:y:2022:i:1:p:16-27
    DOI: 10.47577/tssj.v33i1.6743
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    References listed on IDEAS

    as
    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. Christian David Dick & Qingwei Wang, 2010. "The economic impact of the Olympic Games: evidence from stock markets," Applied Economics Letters, Taylor & Francis Journals, vol. 17(9), pages 861-864.
    3. 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).
    4. 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.
    5. Nazarczuk, Jarosław M. & Umiński, Stanisław, 2019. "Foreign Trade in Special Economic Zones in Poland," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 204302.
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    More about this item

    Keywords

    Special Economic Zones; Unemployment; Elixir; Foreign Direct Investment; Economic Growth;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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