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Industrial clusters: The case for Special Economic Zones in Africa

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  • Carol Newman
  • John Page

Abstract

Firms tend to cluster in close geographic proximity to each other to benefit from reduced transport costs, shared inputs, and productivity spillovers due to learning and technology transfers. Evidence from low-income countries suggests that such agglomeration economies may be substantial in endogenously formed clusters. This raises the question of whether spatial industrial policies can be designed to facilitate clustering. In this paper, we consider the case for creating Special Economic Zones (SEZs) in Africa.

Suggested Citation

  • 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).
    • Handle: RePEc:unu:wpaper:wp-2017-15
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    Cited by:

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    2. Serigne Bassirou Lo & Lassana Cissokho, 2023. "Financial development, institutions and industrialization in sub‐Saharan Africa," African Development Review, African Development Bank, vol. 35(2), pages 152-164, June.
    3. 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.
    4. Richard Adu-Gyamfi & Simplice A. Asongu & Tinaye S. Mmusi & Herbert Wamalwa & Madei Mangori, 2020. "A comparative study of export processing zones in the wake of sustainable development goals: Cases of Botswana, Kenya, Tanzania and Zimbabwe," Research Africa Network Working Papers 20/025, Research Africa Network (RAN).
    5. Ana Margarida Fernandes & Hibret Maemir & Aaditya Mattoo & Alejandro Forero, 2019. "Are trade preferences a panacea? The African growth and opportunity act and African exports," CESifo Working Paper Series 7672, CESifo.
    6. Altenburg, Tilman & Chen, Xiao & Lütkenhorst, Wilfried & Staritz, Cornelia & Whitfield, Lindsay, 2020. "Exporting out of China or out of Africa? Automation versus relocation in the global clothing industry," IDOS Discussion Papers 1/2020, German Institute of Development and Sustainability (IDOS).
    7. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    8. Athukorala, Prema-chandra & Narayanan, Suresh, 2018. "Economic corridors and regional development: The Malaysian experience," World Development, Elsevier, vol. 106(C), pages 1-14.
    9. 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.
    10. Abagna, Matthew Amalitinga, 2023. "Special Economic Zones and Local Economic Activities in Ethiopia," MPRA Paper 117427, University Library of Munich, Germany.
    11. Lin, Boqiang & Sai, Rockson, 2022. "Has mining agglomeration affected energy productivity in Africa?," Energy, Elsevier, vol. 244(PA).
    12. Abel Kinyondo & Carol Newman & Finn Tarp, 2016. "The role and effectiveness of Special Economic Zones in Tanzania," WIDER Working Paper Series wp-2016-122, World Institute for Development Economic Research (UNU-WIDER).
    13. Mwanda Phiri & Shimukunku Manchishi, 2020. "Special economic zones in Southern Africa: white elephants or latent drivers of growth and employment?: The case of Zambia and South Africa," WIDER Working Paper Series wp-2020-160, World Institute for Development Economic Research (UNU-WIDER).
    14. 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.
    15. 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.

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