The Dos and Don’ts of Special Economic Zones
Special economic zones (SEZs) have been used by many developing countries as a policy tool to promote industrialization and economic transformation. The World Development Report 2020 also recognizes the possibility of using SEZs as a means of facil...
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/undefined/700061638779538611/The-Dos-and-Don-ts-of-Special-Economic-Zones http://hdl.handle.net/10986/36663 |
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okr-10986-366632021-12-08T05:10:36Z The Dos and Don’ts of Special Economic Zones Zeng, Douglas Zhihua SPECIAL ECONOMIC ZONES INDUSTRIALIZATION STRUCTURAL TRANSFORMATION EXPORT COMPETITIVENESS FOREIGN DIRECT INVESTMENT PUBLIC-PRIVATE PARTNERSHIPS INVESTMENT PROMOTION Special economic zones (SEZs) have been used by many developing countries as a policy tool to promote industrialization and economic transformation. The World Development Report 2020 also recognizes the possibility of using SEZs as a means of facilitating global value chain participation. As a "high-risk, high-reward" instrument, the global results of SEZs in developing countries are quite mixed. Results vary significantly with some regions or countries. As an industrial policy tool, an SEZ is supposed to complement market forces by helping to overcome market failures. Zone approach is both necessary and feasible, the host government also needs to decide what type of zone is the most suitable. There are typically two types of zones despite the many names they are given: SEZs and industrial parks. SEZs often involve a “special” legal and regulatory regime, and may be appropriate in case the main constraints are related to legal and regulatory issues that affect the business environment besides other constraints, such as land and infrastructures. In other cases, a simple alternative to an SEZ is an industrial park, which does not require a special legal and regulatory regime. In such cases, an industrial park may be more appropriate because it involves less complex and risky processes. Therefore, depending on the specific development objectives and constraints, an SEZ can be considered together with other possible options, though this note will mostly focus on SEZs. 2021-12-07T16:19:33Z 2021-12-07T16:19:33Z 2021-12-06 Policy Note http://documents.worldbank.org/curated/undefined/700061638779538611/The-Dos-and-Don-ts-of-Special-Economic-Zones http://hdl.handle.net/10986/36663 English Equitable Growth, Finance and Institutions Notes; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Policy Note |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
SPECIAL ECONOMIC ZONES INDUSTRIALIZATION STRUCTURAL TRANSFORMATION EXPORT COMPETITIVENESS FOREIGN DIRECT INVESTMENT PUBLIC-PRIVATE PARTNERSHIPS INVESTMENT PROMOTION |
| spellingShingle |
SPECIAL ECONOMIC ZONES INDUSTRIALIZATION STRUCTURAL TRANSFORMATION EXPORT COMPETITIVENESS FOREIGN DIRECT INVESTMENT PUBLIC-PRIVATE PARTNERSHIPS INVESTMENT PROMOTION Zeng, Douglas Zhihua The Dos and Don’ts of Special Economic Zones |
| relation |
Equitable Growth, Finance and Institutions Notes; |
| description |
Special economic zones (SEZs) have
been used by many developing countries as a policy tool to
promote industrialization and economic transformation. The
World Development Report 2020 also recognizes the
possibility of using SEZs as a means of facilitating global
value chain participation. As a "high-risk,
high-reward" instrument, the global results of SEZs in
developing countries are quite mixed. Results vary
significantly with some regions or countries. As an
industrial policy tool, an SEZ is supposed to complement
market forces by helping to overcome market failures. Zone
approach is both necessary and feasible, the host government
also needs to decide what type of zone is the most suitable.
There are typically two types of zones despite the many
names they are given: SEZs and industrial parks. SEZs often
involve a “special” legal and regulatory regime, and may be
appropriate in case the main constraints are related to
legal and regulatory issues that affect the business
environment besides other constraints, such as land and
infrastructures. In other cases, a simple alternative to an
SEZ is an industrial park, which does not require a special
legal and regulatory regime. In such cases, an industrial
park may be more appropriate because it involves less
complex and risky processes. Therefore, depending on the
specific development objectives and constraints, an SEZ can
be considered together with other possible options, though
this note will mostly focus on SEZs. |
| format |
Policy Note |
| author |
Zeng, Douglas Zhihua |
| author_facet |
Zeng, Douglas Zhihua |
| author_sort |
Zeng, Douglas Zhihua |
| title |
The Dos and Don’ts of Special Economic Zones |
| title_short |
The Dos and Don’ts of Special Economic Zones |
| title_full |
The Dos and Don’ts of Special Economic Zones |
| title_fullStr |
The Dos and Don’ts of Special Economic Zones |
| title_full_unstemmed |
The Dos and Don’ts of Special Economic Zones |
| title_sort |
dos and don’ts of special economic zones |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/700061638779538611/The-Dos-and-Don-ts-of-Special-Economic-Zones http://hdl.handle.net/10986/36663 |
| _version_ |
1764485712962387968 |