Abstract
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.
Highlights
The establishment of SEZs has been a top priority on the agenda of governments and policy makers to encourage and upgrade the process of industrialization, attract Foreign Direct Investment (FDI) for export-oriented production, and lay down the foundation of robust economic growth
In the second step the pairwise comparison matrix of the identified criteria and sub-criteria based on Analytical Hierarchy Process (AHP)
Results of the AHP method for main criteria reveal that majority of the experts believe location and land aspect is the most important criterion, with a weight of 0.2251, followed by linkages (0.1804), subsidies (0.1658), facilities (0.1412), labor (0.0992), industrial suitability (0.0778), environmental sustainability (0.0633), and least important criteria is market orientation (0.0471)
Summary
The establishment of SEZs has been a top priority on the agenda of governments and policy makers to encourage and upgrade the process of industrialization, attract Foreign Direct Investment (FDI) for export-oriented production, and lay down the foundation of robust economic growth. Economists believe it could grow GDP, generate employment, improve regional connectivity, enhance FDI, and promote export by establishing 9 SEZs [23]. As the Background study is focused on the prioritization of SEZs in Pakistan based on the criteria and sub-criteria, it is imperative to introduce the SEZs and the key success factors for their proper planning and Republic of China [22]. It has completed its background early harvestand projects successfully and is entering the sustainable development, followed by the introduction of these zones
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