Special Economic Zones and Local Economic Activities: Evidence from Nightlight Analysis in Thailand

Do Special Economic Zones (SEZs) boost local economic activity in Ethiopia? Although SEZs have been an integral part of Ethiopia’s industrial growth over the past 15 years, their local impacts remain understudied. This paper uses satellite-based nighttime light data and a difference-in-differences approach to assess the effects of SEZs across districts. Results show that SEZ-hosting districts saw an average 18% increase in economic activity, with no spillovers to neighbouring districts. The impact is more substantial for larger and publicly owned SEZs. The findings suggest that while SEZs effectively promote local economic development, their spatially concentrated benefits call for complementary policies to extend growth beyond host districts.

Over the past few decades, special economic zones (SEZs) have become a widely used industrial policy tool to support structural transformation and economic development. Yet their impact on the economy remains inconclusive, especially in developing countries where the lack of data presents a challenge. This study examines the potentially causal effect of SEZs on the economy of the Lao People’s Democratic Republic using harmonized nightlight satellite data as a proxy for annual economic activity in 148 districts from 1992 to 2021. Using counterfactual estimators for causal inference with time-series, cross-sectional data, SEZ establishment appears to result in a statistically significant increase in the economic activity of the host districts. Heterogeneity tests show that (i) SEZs in the Lao People’s Democratic Republic seem to have had a greater impact on economic activity after 2010, coinciding with the establishment of dedicated SEZ agencies; and (ii) industrial zones appear to have a higher impact than tourism zones.

This article provides a comprehensive analysis of global experience in the creation and functioning of Special Economic Zones (SEZs), with a particular focus on the cases of Germany and Poland—two countries that have adopted different models for integrating SEZs into their economic development strategies. The paper explores the historical evolution of SEZs, their typology, legal frameworks, tax and customs incentives, and institutional mechanisms supporting businesses within these zones. The role of SEZs as tools for attracting investment, creating jobs, boosting exports, modernizing infrastructure, and supporting regional development is thoroughly examined. Special attention is given to a comparative analysis of the German freeport model, which is primarily oriented toward transport and logistics hubs, and the Polish model of comprehensive SEZs that feature tax incentives for investors, support for SMEs, innovation promotion, and regional employment growth. The study delves into the legal basis of SEZs in Poland, investor requirements, procedures for obtaining permits, mechanisms for interacting with government institutions, and the socio-economic impact of these zones in various voivodeships. The potential for integrating SEZ instruments into Ukraine’s national economic policy is analyzed in light of the country’s current post-war recovery context. A SWOT analysis is presented, identifying the strengths (such as Ukraine's favorable geographic location, natural and human resources, and international support) and weaknesses (including infrastructure destruction, security risks, and regulatory instability) of implementing SEZs in Ukraine. The article offers practical recommendations for developing a national SEZ model in Ukraine, based on the principles of sustainable development, innovation, and cooperation among government, business, and academic institutions. The findings can be used in the formation of post-war economic recovery strategies, legislative initiatives, regional planning, and integration into global economic processes. The research findings may be useful for scholars, policymakers, economists, and other professionals in developing post-war economic recovery strategies, shaping legislative initiatives, as well as in regional planning and integration into global economic processes.

The empirical literature on Special economic zones (SEZs) has shown that SEZs have become critical policy tools for advancing economic and firm performance, especially in developing economies where financial capital, human capital, technology and technical know‐how to drive these performances are in limited supply. While the importance and effects of SEZs cannot be overemphasised and are well documented, particularly in Asia, SEZs' operationalisation, structure and policy practice appear to vary, especially in Ghana and hence a need to examine SEZ effects on firm performance in Ghana. Thus, following the difference in the structure and practice of SEZs and its limited empirical evidence in African emerging economies, this present study employs analysis of variance, treatment estimation and regression models covering 328 firms between 2018 and 2021 to shed insights on how SEZ dynamics/features affect firm performance (measured with total factor productivity, labour productivity, profitability, revenue generation and value added) in Ghana. Our results suggest firms operating under SEZ dynamics have varying significant effects on firm performance. Thus, while firms registered as SEZ firms and operating in SEZ enclaves and firms registered as SEZ firms and operating outside SEZ enclaves have significant positive effects on the performance indicators of firms, firms that are not registered as SEZ firms and operating outside SEZ enclaves detracted firm performance. Clearly, firms that possess SEZ dynamics/features tend to promote performance of firms as denoted in the empirical literature and theoretical approaches to SEZ. Arguably, the tax holidays, cheaper tariffs and infrastructural benefits derived by SEZ registered firms boost their productivity, revenue and profit performance higher than non‐SEZ registered firms. These results suggest policymakers/government should reduce administrative bottlenecks of registering as SEZ firms and operating in SEZ enclaves to increase the number of SEZ firm operations to induce performance and create room for fiscal revenue.

At present, India has many functional Special Economic Zones (SEZs) and Export Oriented Units (EOUs), since the policy of Special Economic Zone (2000) and the scheme of Export Oriented Units (1981) were introduced. These two play an important role in the growth of export from the country. The SEZ and EOU/Export Processing Zones (EPZ) schemes have a common objective of export promotion. Therefore, by and large the procedures are the same. In some developing countries, a lot of economic privileges were given to (SEZs. These privileges facilitated international integration. Lured by the heavy incentives, a large number of industrial houses and developers – Indian as well as foreign – are pushing their applications to the State Governments to approve new proposals. Opening for international investors boosted economic growth in these regions. Hence, a strong regional disparity is developed in the allocation of SEZs in India. This paper tried to map the variation in SEZ distribution. This study will play a significant role for the further decisions of SEZ approvals, because investors have shown much interest in establishment of SEZs in the developed states like Maharashtra, Andhra Pradesh, Tamil Nadu, Karnataka and Gujarat. Among the major categories of SEZ approvals in the country, the IT/IT Enabled Services (ITES)/electronic hardware and semiconductor stand at the top. The state wise comparison reveals that Andhra Pradesh and Maharashtra have the highest number of IT/ITES SEZs, and Andhra Pradesh and Maharashtra have the highest number of Pharma/Bio-tech SEZs. Maharashtra stands at the top in the number of SEZ approvals and Gujarat stands first in the approvals of multi-product SEZs. About the investments and the business prospective of the SEZs, as on 31 March 2008, Gujarat attracted 60.2% of the total investment in the SEZs, covering 30%% of all SEZ land. In case of the approved land area for formal and notified SEZs, Gujarat stands at first place. This picture clearly revels that there is a string of regional or inter-state disparity in industrial development. Literature shows that there is a trade-off between balanced industrial (regional) development and external economies to industries. So, it is expected that SEZs will efficiently increase the export. But, in comparison to EOUs, export performance of SEZs is not satisfactory. The export from SEZs for the year 2007–2008 was Rs 66638 crore in against the export from EOUs, which is accounted for Rs 154428 crore, and average growth rate of export from the period 1992–1993 to 2007–2008 is about 31% for SEZs and 34% for EOUs. So, it is clear that still there is a long way for desirable outcomes from SEZs. Hence, it is suggested that a policy should be implemented, taking in to consideration the regional agglomeration of industries, and required infrastructure for SEZs.

The study aims to check the suitability and feasibility of establishing a storage and distribution center in Tak Province to support the Tak Special Economic Development Zone. Indeed, business organizations in different countries are provided with opportunities to practice business activities in the special economic zone. However, some business organizations are not developing their storage and distribution centers in the special economic zones. The stratified sampling method was adopted in this study to collect the data from the target population. The sample size was 500 and the Likert scale questionnaire was prepared to collect the data from the target population. The study demonstrates that there is a critical role of storage centers and distribution centers in the success of businesses if these centers are following the rules and regulations of the special economic zones. The significance of this study is that no earlier study has discussed the critical role of storage and distribution centers in the Kat Special Economic Development Zone in Kat Province.

Special Economic Zones (SEZs) is one of the known mechanisms to attract Foreign Direct Investment (FDI). Nevertheless, there was a global mix reaction towards its successful implementation with a few operational failures, especially in the area of its legal framework. Therefore, this paper aim is to explore the success and failure experience to be a reference for the development of Special Border Economic Zone at Bukit Kayu Hitam using qualitative textual analysis. It finds that two significant issues in SEZs; regulatory/ legal framework, and development spill-over. Keywords: Special Economic Zones; Land Use Planning Law; Policy Implementation; Bukit Kayu Hitam. eISSN: 2398-4287© 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v5i14.2270

Most developing countries like India across the world have recognized the importance of facilitating international trade for the sustained growth of the economy and increased contribution to the GDP of the nation. The Government of Rajasthan launched SEZ policy in March, 2003. The Government of Rajasthan enacted the Special Economic Zone (SEZ) Development Act in September 2003. Before enactment of central SEZ Act, 2005, RIICO established three SEZs viz Gems and Jewellery SEZ Phase-I, Sitapura, Gems and Jewellery SEZ Phase-II, Sitapura and Handicraft SEZ Boranada Jodhpur. In Rajasthan formal approval has been granted to six SEZ proposals. There are 13 valid in-principle approvals. Out of the 2 formal approvals In this paper an attempt is made to study the Present Status of Special Economic Zone (SEZ) in Rajasthan and the various aspects of SEZ policy, assess development of SEZ in Rajasthan and various aspects of SEZ policy.

Special Economic Zones (SEZs) and Free Trade Zones (FTZs) are special trade or manufacturing enclaves within the territory of a State governed by a different set of laws and regulations than the rest of its territory. They form an essential part of the economic development, trade, and investment policy of several developed countries as well as emerging economies. In 2018, the United States challenged, among other measures, certain incentives which India had provided to SEZs, Export Oriented Units, Biotechnology and Electronics and Hardware Parks (EOU/EHTP/BTP) under India’s Foreign Trade Policy. These incentives were challenged as prohibited export subsidies under the Agreement on Subsidies and Countervailing Measures (SCM Agreement). While the Panel found against India, some of the issues adjudicated in the Panel report have implications for SEZs, FTZs and other similar entities located in such special enclaves. This article seeks to examine some of the key implications of this dispute on the functioning of deemed foreign trade zones within the territorial bounds of a WTO member. Of particular focus is, how WTO Members can implement the SEZs or other Trade Zones without inviting adverse outcomes. In addition, the article examines the contentious issue of the operation of the phase-out period for export subsidies under Article 27.2 of the SCM Agreement, which is of particular importance to a number of developing countries. Special Economic Zones, WTO, SCM Agreement, United States, India, fiscal incentives, revenue foregone, Footnote 1, Article 27, Annex VII, developing countries, cross-border zones

This article analyzes the legislation of the Republic of Kazakhstan in terms of the creation and functioning of special economic and industrial zones. The definition of such concepts as "special economic" and "industrial" zones is given. A comparative analysis of the rules and procedure for the creation of special economic and industrial zones has been carried out, common features and peculiarities of their functioning have been established. It is established that special economic zones are created in order to attract foreign investment into the economy of the Republic of Kazakhstan by decision of the Government, which significantly increases its status and responsibility for the implementation of projects on its territory. The purpose of creating an industrial zone is also to attract investments, but already in the development of a certain region of the Republic of Kazakhstan on the basis of a decision of the local executive body and the akim of the relevant region is responsible for the implementation of projects in the territory of the industrial zone. The analysis also revealed the imperfections of the legislation of the Republic of Kazakhstan in terms of the organization of work and functioning of industrial zones. It is proposed to exclude the formal provision of the law regulating the procedure for considering the Concept of a regional industrial zone project. The purpose of this work is to study and analyze the grounds for the creation of special economic and industrial zones, to consider the specifics of their functioning, as well as to improve the current legislation in this area of public relations

This article analyzes the legislation of the Republic of Kazakhstan in terms of the creation and functioning of special economic and industrial zones. The definition of such concepts as "special economic" and "industrial" zones is given. A comparative analysis of the rules and procedure for the creation of special economic and industrial zones has been carried out, common features and peculiarities of their functioning have been established. It is established that special economic zones are created in order to attract foreign investment into the economy of the Republic of Kazakhstan by decision of the Government, which significantly increases its status and responsibility for the implementation of projects on its territory. The purpose of creating an industrial zone is also to attract investments, but already in the development of a certain region of the Republic of Kazakhstan on the basis of a decision of the local executive body and the akim of the relevant region is responsible for the implementation of projects in the territory of the industrial zone. The analysis also revealed the imperfections of the legislation of the Republic of Kazakhstan in terms of the organization of work and functioning of industrial zones. It is proposed to exclude the formal provision of the law regulating the procedure for considering the Concept of a regional industrial zone project. The purpose of this work is to study and analyze the grounds for the creation of special economic and industrial zones, to consider the specifics of their functioning, as well as to improve the current legislation in this area of public relations.

The article is devoted to studying the theoretical and practical aspects of special (free) economic zones’ functioning. The authors, by analyzing the relationship between the Institute of public-private partnerships and special economic zones, proved that the special economic zones are not a form of public-private partnership, but the environment of its implementation.

In the context of the ongoing debate on land acquisition in India and its relationship to development, this article presents an in-depth investigation of the characteristics of special economic zones (SEZs) in India. This includes the nature of exports and economic activity, their use of land and their location. It finds that a large majority of the SEZs are less than 1 sq. km, their exports focused on the information technology/information-technology-enabled service (IT/ITES) sector and refined petroleum, and located in a limited number of relatively advanced districts in a few states. Further, it is not the new SEZs, but the seven erstwhile EPZs and the 12 SEZs established between 2000 and 2005, which account for 90 per cent of the manufacturing exports from SEZs. Crucially, SEZs occupying 3 per cent of the land are responsible for 81 per cent of the total non-petroleum exports from SEZs. The nature of governance in these SEZs, which are also often seen as incipient urban settlements, is tenuous and non-representative. The article concludes with a discussion on the nexus of land, development and urbanization. It argues that the resistance to land acquisition is related to both acquisition processes and the relative costs and benefits of recent development initiatives, of which SEZs are an integral part.

The government is accelerating the development of Special Economic Zones (SEZs) policy for region-wide development in cooperation with the neighboring countries. This paper aims to consider the opportunities and challenges of the government’s policy on Thailand’s Special Economic Zones (SEZs) in order to provide clearer view of situations in those areas to the policy makers, investors or people who are interested in this policy. This paper referred to the special economic zone in Mukdahan located on the East-West Economic Corridor (EWEC). The findings showed that the second Mekong friendship bridge in Mukdahan offers the biggest opportunity of Mukdahan to develop its Special Economic Zone; however, logistics facilities are needed. Mukdahan’s economy mainly relies on border trade not industry. Furthermore, the small size of land and lack of infrastructure in Mukdahan Special Economic Zone remain the major challenges for Mukdahan to attract investors. The message is clear from the analysis of interviews that it will be a long way for Mukdahan to develop its Special Economic Zone, while activities concerning logistics development might be the right direction for Mukdahan to go. It is recommended that policy makers or policy analysts take into account the uniqueness of each special economic zones in terms of its economic activities and its feasibility and potentials as viable SEZ along with both internal and external factors. Keywords: special economic zones, Mukdahan, East-West Economic Corridor

Empirical evidence on the effectiveness of recent India's Special Economic Zone (SEZ) policy over Export Processing Zone structure is analysed in this article by aggregating data of seven conventional SEZs from 1986–1987 to 2007–2008. The study reveals that introduction of SEZs in place of its predecessor, the Export Processing Zone, is having a significant and positive impact on its trade performance at the aggregate level. However, in terms of contribution to national trade, the Indian SEZs are lagging way behind the expectations of policymakers. Furthermore, the SEZ policy does not seem to be successful in diversifying the exports basket, which in turn has affected the direction of exports by the SEZs. Moreover, these zones were found to be highly susceptible to external shocks. Thus, we strongly argue in favour of a care in deciding the sectoral choice of SEZs and careful scrutiny of its approval across major Indian states.