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Fiscal Implications of Special Economic Zones (SEZs) Expansion in India: A Resource Cost Approach

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  • Malini L. Tantri

    (Centre for Economic Studies and Policy (CESP), Institute for Social and Economic Change (ISEC), Bangalore, India)

Abstract

This paper analyzes the fiscal implications of special economic zones (SEZs) on the government exchequer. The analysis is based on aggregating data collected from seven conventional SEZs and taking 1990–1991 to 2007–2008 as the reference period. The exercise reveals that the government has spent huge sums of money to play the role of a trade facilitator and has, in the process, lost considerable revenue as a fiscal manager. This, in turn, has affected both revenue and capital expenditure of the government's budget. Given the magnitude of these costs, one cannot but raise questions about the actual contributions of these enclaves to the national fiscal health and the feasibility of relentlessly adopting measures that seeks to promote these zones across the nation.

Suggested Citation

  • Malini L. Tantri, 2015. "Fiscal Implications of Special Economic Zones (SEZs) Expansion in India: A Resource Cost Approach," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-27.
    • Handle: RePEc:wsi:jicepx:v:06:y:2015:i:01:n:s1793993315500064
    DOI: 10.1142/S1793993315500064
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    References listed on IDEAS

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    1. Michael Engman & Osamu Onodera & Enrico Pinali, 2007. "Export Processing Zones: Past and Future Role in Trade and Development," OECD Trade Policy Papers 53, OECD Publishing.
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    Cited by:

    1. Kopczewska Katarzyna, 2019. "Can public intervention improve local public sector economic performance? The analysis of Special Economic Zones in Poland," Central European Economic Journal, Sciendo, vol. 6(53), pages 221-245, January.
    2. Sina Hardaker, 2020. "Embedded Enclaves? Initial Implications of Development of Special Economic Zones in Myanmar," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(2), pages 404-430, April.

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    More about this item

    Keywords

    Special economic zones; trade policy; trade performance; F14; F13; F01;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F01 - International Economics - - General - - - Global Outlook

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