Aggarwal, Aradhna (2010): Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India.
Download (399kB) | Preview
This study aims at examining the economic impacts of SEZs in the Indian context. While doing so, it addresses the conceptual confusion about SEZs, outlines the evolution of SEZs; traces economic philosophies explaining the rationale and benefits of SEZs; extends existing theoretical literature to explain the economic impacts of SEZs; assesses the economic impacts of newly notified SEZs in India; reviews the strategies followed by various state governments in the implementation of the policy ; and draws policy implications. It argues that the existing economic theories donot adequately explain the rationale and contribution of SEZs. These approaches need to be extended by integrating the provisions of the theories of agglomeration economies and global value chains within the existing theoretical frameworks. It analyses the economic impacts of SEZs within the extended theoretical framework. It finds that while SEZs are stimulating direct investment and employment, their role appears to be more valuable in bringing about economic transformation from a resource-led economy to a skill and technology-led economy; from low value added economic activities to high value added economic activities; from low productive sectors to high productive sectors; and from unorganised to organized sectors, both at the national and regional levels. They have the potential of promoting new knowledge intensive industries; augmenting existing industrial clusters/industrial states; diversifying the local industrial base; and localizing global value chain. However, a strategic approach is required to reap the opportunities offered by SEZs.
|Item Type:||MPRA Paper|
|Original Title:||Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India|
|English Title:||Economic impacts of SEZs: Theoretical approaches and analysis of newly notified SEZs in India|
|Keywords:||Special economic zones; Exports; FDI; Economic diversification; Agglomeration economies; global value chains;India|
|Subjects:||F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations
O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O19 - International Linkages to Development ; Role of International Organizations
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
|Depositing User:||Aradhna Aggarwal|
|Date Deposited:||01. Mar 2010 16:00|
|Last Modified:||19. May 2015 07:48|
Aggarwal A. (2004), “Export Performance of Export Processing Zones in India”, ICRIER Working Paper 148
Aggarwal A. (2006) Special Economic Zones: Revisiting the Policy Debate,. Economic and Political Weekly, Vol. XLI Nos. 43 and 44, November 4-10.
Aggarwal A. (2007), “EPZs and Productive Diversification: A Case Study of India”, Report submitted to the World Bank, Washington DC.
Amirahmadi, H., and Weiping W(1995). “Export Processing Zones in Asia.” Asian Survey 35 (9):828-849
Baissac C. (2003): “Maximizing the Developmental Impact of EPZs : A Comparative Perspective in the AFRICAN Context of Needed Accelerated Growth ,A Presentation at the Johannesburg EPZ Symposium, Oct15-16,2003.
Becattini G. (1990) The Marshallian industrial districts as a socio-economic notion, in Pyke F., Becattini G. and Sengenberger W. Eds) Industrial Districts and Inter-firm Co-operation in Italy, pp. 37–51, International Institute of Labour Studies, Geneva.
Bolin, R. (2004) Editorial Journal of the Flagstaff Institute, Volume XXVIII, Number 1,
Buchanan, J. and Tullock, G. (1962). The Calculus of Consent, Logical Foundations of Constitutional Democracy. Ann Arbor: University of Michigan Press
Chang, H.J.(2002) Kicking Away the Ladder: Development Strategy in Historical Perspective, Anthem Press.
FIAS (2008) Special Economic Zones : performance, Lessons learned and Implications for zone development, Report of FIAS, the multi-donor investment climate advisory service managed by the International Finance Corporation (IFC)
Fujita M., P. Krugman and A. Venables (1999). The Spatial Economy: Cities, Regions, and International Trade, MIT Press: Cambridge MA
Garcia-Mila, T. T. McGuire (2002), Tax Incentives and the City (Brookings-Wharton Papers on Urban Affairs)
Gereffi, Gary, (1999), “International Trade and industrial upgrading in the apparel commodity chain,” Journal of International Economics 48(1):37-70
Glaeser, Edward L., “The Economics of Location-Based Tax Incentives” (October 2001 Harvard Institute of Economic Research Paper No. 1932.
Grossman, G. (1990). "Explaining Japan's Innovation and Trade: A Model of Quality competition and Dynamic Comparative Advantage," BOJ Monetary and Economic Studies, Vol. 8 (2), pp. 75-100.
Hayter, S. (2001) “FDI and Labour Standards”, presented at the OECD Global Forum for Trade on “Trade Policy Issues: The Labour, Environmental and Competition Dimensions”, Paris, 8-9 March.
Haywood, R. (2000). Free zones in a modern world. Presentation of the World Economic Processing Zones Association, CFATF Meeting, Aruba, October 2000.
Khan 2004). State Failure in DevlopingCountries In Toward Pro-Poor Policies : Aid ,Institution, and Globalisation, New York : The World Bank, OUP, 165-195
Kim, J.Y. and Jhang L.Y. (2008) Formation of Foreign Direct Investment Clustering–A New Path to Local Economic Development? The Case of Qingdao, Regional Studies, 42(2), 265-280
Kudo T. (2009) Border Area Development in the GMS: Turning the Periphery into the Centre for Growth, ERIA Discussion paper Series-2009-15
Li, X (2001) A study on the urbanization of Guangzhou Economic and Technological Development District and Guangzhou Hitech Industrial Development Zone. Tropical Geography 21(1), 11–16
Maariotti, (2005) Firm relocation and regional policy. A focus on Italy, the Netherlands and the United Kingdom, Ph.D. Dissertation, University of Groningen
Madani, D. (1999) A Review of the Role and Impact of Export Processing Zones, World Bank Policy Research paper No. 2238, The World Bank, washington DC.
Meng, G.W (2005) Evolutionary model of free economic zones: Different generations and structural features. Chinese Geographical Sciences, Vol. 15 (2), 103-112, Science Press Beijing.
Milberg W. (2007). Exporting Processing Zones, Industrial Upgrading and Economic Development: A Survey, SCEPA Working Papers 2007-10, Schwartz Center for Economic Policy Analysis (SCEPA), New School University
Pellenbarg, P. H., L.J.G. van Wissen and J. van Dijk (2002), “Firm migration”: P. McCann (Ed.) Industrial Location Economics ,Northampton ,MA,USA.
REPP 2004 Report on renewable energy policy project technical report, USA
Rhee, Y. W. and T. Belot (1990), Export Catalysts in Low-Income Countries: A Review of Eleven Success Stories. World Bank Discussion Paper 72, Washington, D.C.
Romer P.M. (2007) Economic Growth, The Concise Encyclopedia of Economics, David R. Henderson (ed.) Liberty Fund, 2007.
Schmitz, H. (1995) Collective efficiency: growth path for small-scale industry, Journal of Development Studies 31, 529–566
Wei, Y.D. and Leung,C.K. (2005) Development Zones, Foreign Investment, and Global City Formation in Shanghai, Growth and Change, 31(1), 16-40
Zhang, X G (1999) Foreign investment policy, contribution and performance. In Foreign direct investment and economic growth in China, (ed.) Y R Wu pp. 11–41. Edward Elgar, Cheltenham.