How special are special economic zones: Evidence from South Asia

Aradhna Aggarwal publishes paper in The World Economy

aradhna-aggarwal
07/02/2023

Despite a vast and growing literature on special economic zones (SEZs) there is virtually no quantitative research on how ‘special’ they are. This study addresses this gap. Theoretically, what sets SEZs apart from other economic zones is their ability to remove growth impeding institutional constraints in a geographically limited area. This study applies quasi-experimental designs to assess how successful the special economic zones (SEZs) have been in overcoming institutional constraints with reference to three South Asian countries: India, Bangladesh, and Pakistan. The study, first to provide causal evidence based on the World Bank’s Enterprise Survey data,  has important implications for policy makers who seem to be in a rush to set up SEZs as a development panacea across the world. 
doi is 10.1111/twec.13383

Sidst opdateret: Department of International Economics, Government and Business // 27/02/2023