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SEZs and economic transformation:towards a developmental approach

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  • Aradhna Aggarwal

Abstract

This study presents a three-pillared analytical framework for the success factors and development outcomes of special economic zones (SEZs). The core argument is that countries that adopt a well-structured approach towards SEZs that they can align with the broader development strategy, executive effectively, and continuously evaluate and manoeuvre over time, are more successful in achieving SEZ-led economic transformation than others. This requires strategic bureaucratic competencies to make the right choices and set clear strategic directions; strategic bureaucratic learning to dynamically and interactively engage in adjusting the strategies when needed; and strategic bureaucratic strengths to implement the strategy effectively. These elements in turn need an effective political leadership with a strong development focus that can energise and motivate bureaucracies. The study revisits the experience of successful, not-so-successful and least successful countries across the globe within this framework and concludes by raising some pertinent concerns about SEZ-led development strategy that emerge from the analysis.

Suggested Citation

  • Aradhna Aggarwal, . "SEZs and economic transformation:towards a developmental approach," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:tncjou:2
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    References listed on IDEAS

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    1. Stefano Ponte & Timothy J. Sturgeon & Mark P. Dallas, 2019. "Governance and power in global value chains," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 6, pages 120-137, Edward Elgar Publishing.
    2. Susanne A. Frick & Andrés Rodríguez-Pose & Michael Wong, 2018. "Towards economically dynamic Special Economic Zones in emerging countries," Papers in Evolutionary Economic Geography (PEEG) 1816, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2018.
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    4. Rajah Rasiah & Vicki Crinis & Hwok-Aun Lee, 2015. "Industrialization and labour in Malaysia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 20(1), pages 77-99, January.
    5. Wang, Jin, 2013. "The economic impact of Special Economic Zones: Evidence from Chinese municipalities," Journal of Development Economics, Elsevier, vol. 101(C), pages 133-147.
    6. 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.
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    Cited by:

    1. Susanne A. Frick & Imane Radouane, . "Special economic zones and entrepreneurship: A new path forward for SEZs in Africa?," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    2. 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.
    3. Rajneesh Narula & James X. Zhan, . "Using special economic zones to facilitate development: policy implications," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    4. Selim Raihan & FNU Jonaed & Md. Tuhin Ahmed, 2024. "Impact of Stimulus Packages on Business Recovery During the COVID-19 Pandemic in Bangladesh," Journal of South Asian Development, , vol. 19(2), pages 169-198, August.
    5. 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.
    6. Aradhna Aggarwal, 2023. "How special are special economic zones: Evidence from South Asia," The World Economy, Wiley Blackwell, vol. 46(8), pages 2361-2382, August.

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