Special Economic Zones and Export-led Growth

2020 ◽  
pp. 322-344
Author(s):  
Ludovico Alcorta ◽  
Taffere Tesfachew
Keyword(s):  
Industrial Policy ◽  
Industrial Development ◽  
Policy Instruments ◽  
Productive Capacity ◽  
Special Economic Zones ◽  
Policy Objectives ◽  
Development Goals ◽  
Manufactured Exports ◽  
Economic Zones

The chapter will examine the role of special economic zones (SEZs) as drivers of export-led growth and structural transformation. SEZs and related export processing zones (EPZs) are mechanisms that governments have used to attract investment, create jobs, facilitate technology transfer, promote manufactured exports, and foster industrial development. Developing country governments have established SEZs as a policy choice but their ability to succeed depends on long-term industrial policy objectives, aligning industrial policy instruments such as SEZs with the corresponding stage of industrialization of the country, and the degree of complementarity of SEZs with other industrial policy instruments. After defining SEZs, the chapter will highlight the strategic importance of building productive capacity for exports, more specifically, manufacturing capabilities as a leading long-term development goal. It will then analyse the interrelationship between SEZs and ‘early, ‘middle’ and ‘late’ stages of industrialization. Finally, the chapter will consider alternative ways of combining SEZs with other policy instruments to achieve the desired development goals.

Industrial policy and special economic zones

Myanmar ◽  
2020 ◽  
pp. 120-135
Author(s):  
Giuseppe Gabusi ◽  
Michele Boario
Keyword(s):  
Industrial Policy ◽  
Special Economic Zones ◽  
Economic Zones

Few anti-poverty efforts likely in Mexico pre-election

2017 ◽  
Keyword(s):  
Poverty Alleviation ◽  
Auto Industry ◽  
Education Reforms ◽  
Election Campaign ◽  
Special Economic Zones ◽  
Content Type ◽  
Limited Impact ◽  
Southern States ◽  
Economic Zones

Subject Poverty. Significance President Enrique Pena Nieto on September 29 signed declaratory decrees for three ‘Special Economic Zones’ (SEZ) in deprived areas in four southern states. SEZs are designed to address nationwide poverty imbalances by attracting investment and jobs to some of the country’s poorest regions. Though some progress has been made, poverty alleviation efforts have had limited impact. Nearly half of Mexicans still live in poverty. Impacts Should NAFTA renegotiations adversely affect Mexico’s auto industry, poverty could quickly rise in central states. Failure to properly implement education reforms in southern states will cripple their long-term economic prospects. Poverty will strengthen the 2018 election campaign of leftist presidential frontrunner Andres Manuel Lopez Obrador.

scholarly journals The peculiarities of tax incentives for Industrial and innovative clusters in Russia

2021 ◽  
pp. 35-49
Author(s):  
Dinara Ibragimova
Keyword(s):  
Socioeconomic Development ◽  
Tax Incentives ◽  
Industrial Clusters ◽  
Special Economic Zones ◽  
Special Contribution ◽  
Tax Regimes ◽  
Tax Benefits ◽  
Economic Zones ◽  
Stimulation Of

This article examines the available approaches towards tax incentivization of the activity of subjects in the industrial and innovative clusters. Analysis is conducted on the tax benefits that could be received by the residents of preferential regimes, such as special economic zones, free economic zones, territories of advanced socioeconomic development within the framework of membership in the Skolkovo Innovation Center, as well as regime for the participants of innovative scientific and technological centers. The peculiarity this research is that tax incentives are examined from the perspective of their relevance on each stage of the lifecycle of an industrial product and innovation. The author's special contribution lies in the selected approach towards assessment of the effect of preferential tax regimes from the standpoint of the development of industrial and innovative clusters. The main conclusions are as follows: 1. Currently existing territorial regimes of taxation are aimed primarily at attraction of new investments to the Russian regions and include a range of tax support measures effective for the limited period on the first stage of lifecycle of the product or innovation; 2. From the perceptive of stimulation of participation in the industrial clusters, the available preferential regimes contain attractive and essential benefits for manufacturing industrial products, however, traditional regimes, such as special economic zones and territories of advanced socioeconomic development, no longer meet the needs of innovative companies. For stimulation of participation in the innovative clusters, tax regime for the Skolkovo Innovation Center currently seems most attractive. 3. Due to the fact that the existing regimes of special economic zones, free economic zones, territories of advanced socioeconomic development are aimed at the attraction of investment and focused on the first years of implementation of the project. For incentivization of the qualitative development of industrial and innovative clusters it is reasonable to assess the possibility of more even distribution of tax benefits or introduce other long-term methods of support.

scholarly journals Special economic zones in Southern Africa: white elephants or latent drivers of growth and employment? The case of Zambia and South Africa

2020 ◽  
Author(s):  
Mwanda Phiri ◽  
Shimukunku Manchishi
Keyword(s):  
South Africa ◽  
Southern Africa ◽  
Industrial Development ◽  
Special Economic Zones ◽  
Eastern Cape ◽  
Business Services ◽  
Coordination Failures ◽  
Study Approach ◽  
Economic Tools ◽  
Economic Zones

The successful use of special economic zones as economic tools for export-led industrial development in East Asia propelled a wave of similar initiatives across Africa. In Southern Africa, Zambia and South Africa instituted special economic zones in their respective legal and institutional frameworks in the 2000s as mechanisms for catalysing industrialization and employment creation by means of domestic and foreign investments. Using a case-study approach, we find that special economic zones in the Eastern Cape, South Africa, are largely latent drivers of growth and employment hampered by inadequate infrastructure financing and provision and weak local supplier capabilities. Special economic zones in Lusaka, Zambia, face similar constraints but are further hampered by inadequate business services provision, burdensome regulations and business procedures, a fragmented incentive framework, institutional coordination failures, and a weak design that does not leverage strategic anchor industries for greater agglomeration economies, thus rendering them more of white elephants.

SEZs alone will not reduce poverty in Mexico

2016 ◽  
Keyword(s):  
Special Economic Zones ◽  
Federal Law ◽  
Content Type ◽  
Industrial Corridor ◽  
Set Up ◽  
Economic Zones ◽  
The Impact ◽  
Sensitive Issues ◽  
Lazaro Cardenas

Subject The challenges facing special economic zones. Significance The Federal Law of the Special Economic Zones (SEZs) entered into force on June 1. SEZs are to be set up in Lazaro Cardenas (Michoacan), Puerto Chiapas (Chiapas), the trans-Tehuantepec Isthmus industrial corridor joining Coatzacoalcos (Veracruz) with Salina Cruz (Oaxaca), and the oil corridor between Campeche and Tabasco. The first anchor companies in each zone are to be established by 2018. Impacts Poor economic growth for the foreseeable future will limit the impact of the SEZs. Promises that the SEZs will be operating by 2018, an electoral year, could lead to rushed implementation, risking long-term sustainability. Political capital from the SEZs will be constrained by public frustration with other sensitive issues such as corruption and crime.

scholarly journals Assessment of the main reasons for the stagnation of territorial development in Russia

2020 ◽  
Vol 11 (29) ◽  
pp. 254-264 ◽  
Author(s):  
Anzor V. Misakov ◽  
Anzor Kh. Sabanchiev ◽  
Lola D. Sanginova ◽  
Elena N. Danilevskaya ◽  
Musa A. Eskiev
Keyword(s):  
Russian Federation ◽  
Industrial Development ◽  
Special Economic Zones ◽  
Territorial Development ◽  
Continuous Increase ◽  
The Russian Federation ◽  
Market Relations ◽  
Economic Zones

Globalization, accompanied by a continuous increase in competition, complicates the conditions for the development of market relations in the Russian Federation. The priority development territories should have functioned as a tool for industrial and productive reform. These territories and their special economic zones should have become territorial centers of innovative and industrial development. However, it does not happened. The article analyzes some of the main reasons for this situation in Russia.

scholarly journals Sustainable and Special Economic Zone Selection under Fuzzy Environment: A Case of Pakistan

Symmetry ◽  
2020 ◽  
Vol 12 (2) ◽  
pp. 242 ◽  
Author(s):  
Waqas Ahmed ◽  
Qingmei Tan ◽  
Yasir Ahmed Solangi ◽  
Sharafat Ali
Keyword(s):  
Delphi Method ◽  
Environmental Sustainability ◽  
Key Factors ◽  
Fuzzy Environment ◽  
Belt And Road ◽  
Development Goals ◽  
Economic Zones ◽  
Hierarchy Process ◽  
Selection Of

The establishment of Special Economic Zones (SEZs) is a lengthy, expensive, and long-term orientated endeavor. Proper selection of SEZs is indispensable to meet the objectives of export-led growth and value up-gradation. Consideration of sustainability issues in such planning under the Zone 3.0 paradigm is critical to achieve Sustainable Development Goals (SDGs) by 2030. Multiple key factors such as location, linkages, labor force, suitability of industries, incentives and facilitation, and market orientation are important in decision-making process of establishing SEZs. Furthermore, environmental conditions and resource availability need to be considered in the planning and policy making processes to keep symmetry in the natural environment and ecosystem of the areas under consideration for SEZs. The present study uses Multi-Criteria Decision Analysis (MCDA) methods in the perspectives of green industrial zone planning and development in Pakistan under the flagship project of China-Pakistan Economic Corridor (CPEC) of China’s Belt and Road Initiative (BRI). This research uses Delphi method, Analytical Hierarchy Process (AHP), and the Fuzzy Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR). The Delphi method has been used to identify the main criteria, sub-criteria, and their weights for 3 SEZs under consideration. The results of AHP analysis unfolded that the majority of the experts believe the location and land aspect is the most pivotal criteria in setting SEZs followed by linkages, subsidies, and facilities criteria. Finally, the results of Fuzzy VIKOR analysis considering environmental sustainability reveals that Faisalabad SEZ is the best suited under given criteria and sub-criteria.

scholarly journals INDUSTRIAL POLICY AND COMPETITIVENESS OF THE TUNISIAN MANUFACTURING SECTOR

2021 ◽  
Vol 53 (4) ◽  
pp. 67-75
Author(s):  
Nihel Frikha ◽  
◽  
Mohamed Ben Amar ◽  
Keyword(s):  
Industrial Policy ◽  
Manufacturing Sector ◽  
Tertiary Education ◽  
Policy Instruments ◽  
Public Authorities ◽  
The Public ◽  
Panel Model ◽  
The Impact ◽  
Cointegration Relationship

This paper aims to assess the impact of industrial policy instruments on international competitiveness and in particular on the competitiveness of the manufacturing sector in Tunisia. From a non-stationary panel model composed of 13 Tunisian manufacturing sectors during the period 1995-2016, we show the existence of a long-term cointegration relationship between manufacturing exports and its determinants. The results show that spending on research and development and tertiary education has a positive effect on exports. Hence, it is necessary for the public authorities to intervene within the framework of industrial policy to promote technological innovation and higher education.

scholarly journals Special economic zones (SEZS) in Southern African development community (SADC)

2016 ◽  
Vol 6 (4) ◽  
pp. 19-23
Author(s):  
Virimai Victor Mugobo ◽  
Misheck Mutize
Keyword(s):  
Economic Growth ◽  
National Income ◽  
Ordinary Least Squares ◽  
Southern African Development Community ◽  
Special Economic Zones ◽  
Net Benefit ◽  
African Development ◽  
Economic Zones ◽  
The Relationship

There have been calls on Southern African Development Community (SADC) governments to device strategies to boost economic growth, structural and infrastructural development. Economists have been recommending that Foreign Direct Investment (FDI) would foster long term economic growth rather than borrowing from multilateral institutions, hence Special Economic Zones (SEZs) have been established to attract investments. However, there have been arguments against SEZs on the net benefit accruing to the host nation from SEZs. This study applied the Ordinary Least Squares (OLS) on 15 SADC member countries’ SEZs profit remittance data and draw a multi-linear regression model to establish the relationship between national income and FDI. The results show that there is a not significant relationship between these variables. Hence there is no net benefit accruing to the host country by establishing SEZs. However long-term benefits may be realised if the companies operating in these zones construct infrastructures and other structural developments.

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