Development Of Special Economic Zones Research Articles

Special economic zone and infant mortality: Evidence from China.

By exploiting the development of special economic zones (SEZs) in China as a quasi-natural experiment, this paper evaluates how such zones affect infant mortality. Difference-in-differences analysis reveals that SEZs significantly decrease the local infant mortality rate, and the impact is larger for male infants and infants with less-educated mothers. Further studies show that the SEZs, which acts as an economic growth shock, improve infant survival by increasing the local income. Furthermore, there is no supportive evidence that the SEZs significantly alter either women's fertility-associated behaviors or environmental pollution. These results highlight the previously ignored human capital-related consequences of place-based policies in China.

Putting the Place in Flow Restructures: Networks, Assembled Positionalities, and the Special Economic Zone Development

This article attempts to further develop the positionality of place through aggregated effects of vision construction by different positioned actants. We attempt to integrate two concepts: the feminist positionality that stresses the subjects’ situatedness in networks and their relational power of vision constructions in host places and the networking behavior of brokers with their exclusive connections to small world clusters, as argued by international relations network analysis. Our attempts at the bodily level of situated and subjective vision construction aim to address two challenges: first, how to address the entanglement of geopolitics and biopolitics, and second, how do encounters account for the power of a place premised on its areal resources through the behavior of brokers. The institutionalization of special economic zone development in Cambodia, from the introduction of new norms to law-making and planning, is chosen as a case for its dynamic process.

SPECIAL ECONOMIC ZONES MECHANISMS AND THEIR ROLE IN THE ECONOMIC DEVELOPMENT OF CENTRAL AND EASTERN EUROPE COUNTRIES (CASE OF POLAND)

Special Economic Zones (SEZs) are widely used in most developing countries and in many developed countries. The main goal of this study is to identify mechanisms of SEZs functioning and their role in the economic development of the countries of Central and Eastern Europe (based on the examples of Poland). As a result of the study presented in the article, the conclusions can be drawn that in the countries of Central and Eastern Europe SEZs are successfully used both as a tool of investment and industrial policy, and through the mechanisms of functioning of SEZs, the interests of private investors and national goals of economic development of the countries are actually merged. The formation of SEZs in Central and Eastern European countries is aimed at industrial development, in particular export production, involvement of advanced technologies and domestic R&D, development of innovative potential of the countries, employment generation, etc. SEZs in Poland serves as an effective tool for the investment policy and are actually part of a competitive package of measures that are used to attract foreign investors along with other forms of promotion of foreign investment. In the history of economic development of SEZs, especially in Central and Eastern Europe, a wealth of experience has been accumulated in attracting foreign investment, and its analysis and use can be useful in justifying the methods and organization of state investment policy in transition countries, including Ukraine.

Indonesia's FDI in Development of Special Economic Zones (SEZs)

In realizing equitable development and economic growth, it is necessary to develop special economic zones (SEZs) as a form of commitment of the Indonesian government; and if viewed from the budget perspective applied, it is still limited. This study aims to determine the factors affecting Foreign Direct Investment (FDI) in Indonesia from 2008 2nd quarter to 2021 2nd quarter. Based on that period, the economy in Indonesia experienced a contraction since the Asian monetary crisis in 1998. So that the development of SEZs experienced financial budget constraints and Indonesia can try to find other financing solutions. For developing countries, such initiatives should be taken in order to attract foreign investment. This study uses quantitative research with the analytical method used is the Vector Error Correction Model (VECM), which is a derivative of the vector autoregressive (VAR) method. The results of this study indicate that for the long-term VECM variable estimates only interest rates have a negative effect on FDI, and trade inhibition, inflation, and GDP variables have a positive effect. While the wage variable has no effect on FDI. In this phenomenon, it is necessary to pay attention first to the influence on FDI, companies in Indonesia, the majority of which are labor-intensive workers.
 Keywords: FDI, GDP, inflation, interest rates, trade inhibition, wage

“Greening” the National Growth: How Global Green Growth Institute (GGGI) Collaborates with Indonesia in 2014-2020

With its natural richness, Indonesia is not immune from environmental, economic, and social problems. Indonesia remains facing the problem of greenhouse gas (GHG) emissions and environmental degradation resulting from economic activities caused by business-as-usual (BaU) activities. Therefore, Indonesia has developed a framework for a green growth program for national economic development with the Global Green Growth Institute (GGGI) since 2014. GGGI is an international organization that is specifically concerned about green growth at the global level. The Green Growth Concept was agreed upon at the 2005 Asia Pacific ministerial meetings in Seoul, South Korea. Indonesia also ratified the agreements to implement this green growth concept at the national level. This research elaborates on how GGGI, as a global actor, collaborates with Indonesia to develop the green growth framework. This study uses a descriptive qualitative research method with secondary data collection through literature, which will discuss GGGI's efforts to help implement the green growth program in Indonesia in 2014-2020. The case study is analyzed through the Management Approach, Normative Approach, and Enforcement Approach approaches. Through these three approaches, GGGI has succeeded in assisting Indonesia in implementing green growth in Indonesia in 2014-2020. Some of the programs that have been achieved include the eCBA program, the development of Special Economic Zones (KEK), and the implementation of the legal regulations in force in Indonesia.

Impacts of the Belt and Roads Initiative on Sustainability: Local Approaches to Spatial Restructuring in the Aras Special Economic Zones

Spatial restructuring and regional economic development are closely associated with sustainability. Despite the considerable literature on urbanization’s impact on sustainable economic development and urban expansion, few studies have explored how FDI-led spatial restructuring affects the sustainability from a local people perspective. To fill this gap, in-depth interviews were conducted with 516 residents of Aras special economic zones in Iran to assess the impacts and responses to economic shifts and spatial restructuring resulting from the Belt and Road Initiative since 2013. Using the DPSIR framework and sustainability index as an evaluation tool, we assessed the degree of sustainability and viable uplift at the regional level. The Genetic Algorithm (GA) was also utilized to determine optimal values based on local approaches. Results indicate that regional heterogeneity, excessive state pressure, and development imbalances impact the study area. The findings enrich the theory of sustainability and can guide the formulation of spatial restructuring, decision-making, and policies at different stages of regional development. In addition to financial progress, people-centered development planning using local approaches should be a component of the development of special economic zones.

A Comparative Analysis of the Japanese Overseas SEZ in Phnom Penh and the Chinese Overseas SEZ in Sihanoukville, Cambodia: from the Perspective of Porter’s Diamond Model

This study focuses on the development and influence of special economic zones (SEZs), examining factors such as enterprise competitiveness, main industries, supply chain relationships, and the development environment of the zones. The lack of a consistent framework for assessing the performance and impact of SEZs has been a challenge in research. To address this, the paper employs Porterʼs Diamond Model to analyze the factors that contribute to the development and influence of SEZs, suggesting that this model can serve as a comprehensive framework for future SEZ research. The existing research on SEZs in developing countries is found to be inadequate. However, the SEZs established in Cambodia through collaborations with China and Japan have played a significant role in the countryʼs rapid economic growth. By examining two specific cases — the Japanese-invested Phnom Penh SEZ and the Chinese-invested Sihanoukville SEZ — this study identifies common operational challenges faced by developing countries in establishing SEZs. Furthermore, by exploring different collaboration models and assessing the impacts on local communities, this research offers valuable insights for policymakers and international investors in their decision-making processes.

THE CONFLICT BETWEEN CERTAIN CAPITAL ALLOWANCES IN THE INCOME TAX ACT AND THE SPECIAL ECONOMIC ZONES POLICY OBJECTIVES

Through various incentives, special economic zones (SEZs) aim to promote industrial capacity development, create jobs and stimulate the South African economy. However, in practice, misalignment of tax legislation requirements with current practices may undermine the success of the SEZ programme. If property developers are unable to claim capital allowances for expenditure incurred on property developments within an SEZ, this acts as a disincentive to investment, which conflicts with the overarching rationale for the SEZ initiative. This study seeks to determine the extent to which current practices prevent property developers from claiming capital allowances for developments in SEZs, and to propose appropriate remedies. The study presents a doctrinal analysis of the requirements of the SEZ Act and relevant provisions of the Income Tax Act in the context of current practices in SEZ development. The analysis demonstrates that, where the ownership of land designated for SEZ development is retained by government, property developer lessees may be unable to claim capital allowances in respect of expenditure incurred on property developments. This study therefore motivates for the removal of the ownership requirement from building allowance provisions of the Income Tax Act. This would align tax legislation with current practice and the policy objectives of the SEZ programme, as well as address the current inconsistency in the requirements of building allowances.

SPECIAL ECONOMIC ZONES OF WESTERN KAZAKHSTAN AS A MECHANISM FOR IMPROVING INVESTMENT AND INNOVATION ACTIVITIES

The purpose of the study is to study the theoretical aspects of special economic zones and develop scientifically sound recommendations for determining development opportunities in the West Kazakhstan region.Methodology – during the research work, the bibliographic method was used to determine the theoretical and methodological aspects and the ideas of foreign, Kazakh authors about the special economic zone were studied. A mathematical analysis of statistical data was carried out to assess the state of special economic zones in the West Kazakhstan region. The necessary indicators for this were selected by the ranking method. Based on the results of the evaluation using the inductive method, recommendations for the development of the activities of special economic zones have been developed.Uniqueness / value of the study – the importance of creating and improving special economic zones for the development of innovative activities, as well as increasing the investment attractiveness of the West Kazakhstan region is determined. At the same time, the leading industry directions for the development of special economic zones in the region have been identified. A set of measures to improve the investment climate and improve innovation activities has been systematized.The results of the study – an assessment of the innovation and investment activities of the West Kazakhstan region was carried out; the possibilities of improving the activities of the currently created special economic zones and the creation of new ones were identified, recommendations for their improvement were given.

Socio-spatial transformation: The case of Eastern Industry Zone and Bole Lemi-1 special economic zones, central Ethiopia

Special economic zones (SEZs) are places of exception with specific regimes and territorial boundaries that are effectively secluded from the rest of their surroundings. Ethiopia adopted SEZ development programs recently as an instrument of industrialization in its economic policy framework. This study tries to examine the triggering effect of SEZs in bringing socio-spatial transformations to their surroundings and host cities based on the enclave urbanism conceptual framework. The study considered Bole Lemi-1 (BL-1) and Eastern Industry Zone (EIZ) SEZs in Ethiopia. It used satellite images, a household survey, key informant interviews, observations, and a review of secondary sources to gather data. Spatio-temporal satellite images were obtained from the United States Geological Survey for 2008, 2014, and 2021. Randomly selected 384 households residing within 5 km radius of the SEZs were surveyed. Land use land cover (LULC) change analysis detected a consistent rise in the built-up area at the expense of shrinking farmlands and open spaces. The survey results reflect socio-cultural, economic, and environmental changes witnessed around the zones, while other stakeholders, including experts and officials, question the claimed transformation. The Mann-Whitney U tests (α = 0.05) result revealed significant statistical differences between EIZ and BL-1 in terms of socio-cultural and environmental transformations. In contrast, perceptions towards economic change showed no statistical differences. While the perspectives reflected in the study are open to continuous debate and further nuance before making bold conclusions, the analyses on the case SEZs signify the juxtaposition feature of zone permeability and enclaveness. We contend that the socio-spatial shifts triggered by the SEZs remain elusive unless pre-engineered with clear objectives and indicators at the outset. SEZ's development policy agendas recommended engraining a porous-enclave principle in their development blueprint.

ON THE FACTORS OF THE REGION'S FINANCIAL OPPORTUNITIES DEVELOPMENT BY ENSURING THE ACTIVITY OF THE FREE ECONOMIC ZONES

The article attempts to highlight the importance, tasks, factors and modern problems of effective implementation of the state policy for the development of special economic zones in the formation and strengthening of the financial potential of the regions. Features and objectives of the application of its effective tools and methods are based on the world experience in the development of the financial potential of the region on the basis of ensuring the operation of special economic zones and the experience of modern trends characteristic of this mechanism.The directions for the development of the financial potential of the region in the perspective of the socio-economic development of the Republic of Uzbekistan until 2030 on the basis of ensuring the operation of special economic zones are substantiated

Latest trends in the development of special economic zones: constitutional regulation, legislative delegation and organizational independence

Latest trends in the development of special economic zones: constitutional regulation, legislative delegation and organizational independence

The Environmental and Sustainable Factors on the Special Economic Zones Development

The process towards sustainability is indeed very complicated, given the increasing need of the population for infrastructure to support human activities. The objective of the study is to analyze the influence of environmental factors and their awful effects on infrastructure projects with sustainable construction models in special economic zones. The methodology used are mixed methods, combination of quantitative and qualitative approaches with the total respondent are 80 persons. The respondents involved are divided by company/institution, company’s qualifications, and stakeholders. The first validity shows that all factors have a value above 0.5, by using Fornell Lacker Criterion, it is found that the CDV value met the requirements from all variables involved. The validation was calculated by a cross-loading method called discriminant validity. After validity, it is continued to obtain model fit value and the final model fit is 0.568 means good model. The NFI value released was 56.8%. It means that the declared model was good enough to be implemented within sustainability in SEZs. This result supported the previous research, which stated that a sustainable construction model using a multi-criteria approach is a good model choice for the development of a sustainable construction model. Doi: 10.28991/CEJ-2023-09-02-06 Full Text: PDF

НОВЫЕ ИНВЕСТИЦИОННЫЕ ВОЗМОЖНОСТИ РОССИИ В ЮГО-ВОСТОЧНОЙ АЗИИ НА ПРИМЕРЕ ИНДОНЕЗИИ И ВЬЕТНАМА

The article aims to analyze investment attractiveness of Southeast Asia countries for Russia. The author discusses main reasons for the increased interest among investors, as well as carefully examines Russia cooperation with Vietnam and Indonesia as key recipients of FDI and Russia partners in the region. Both governments maintain policies that are broadly conductive to FDI. Nevertheless, the author concludes that Vietnam currently has more factors that attract the interest of the investors while the full attractiveness of Indonesia will become visible in a few years in case the policy of the development of special economic zones is successful.

Systematic analysis of the essential characteristics of the concept “economic and technological development zone”

Based on the empirical data on the development of special economic zones in countries with developed and developing economies, this article illustrates the positive effect of the state regional development policy and confirms the effectiveness of the technology under study. The purpose of this article is to determine the essence of the Economic and Technological Development Zones and to identify their main characteristics. To achieve this goal, a systematic review was chosen as a research method using the meta-analysis method, in accordance with which a selective study of 76 publications included in the free search engine for scientific publications was carried out, within which, according to the selected criteria for the structure of the article, the age of the source, the presence in the keywords of the research object as well as the availability of the results of theoretical and empirical analysis, 26 publications were selected, the meta-analysis of which made it possible to identify the essential properties and characteristics of the category Economic and Technological Development Zone. The main condition for the successful implementation of the Development Zones project is the creation of industrial symbiosis, taking into account the environmental aspect and the adaptation of the Development Zone strategies to the institutional conditions of specific countries and regions.

Cluster Identification of Agrotourism in Banten Province Indonesia

The post-pandemic era affects the tourism sector. Before the pandemic, agrotourism was growing in Banten Province in line with the development of special economic zones. To regain the competitiveness of agrotourism in Banten Province, characterization among regions is crucial. This study aims to cluster the regions in Banten Province into groups to identify the agrotourism potency. This study employed a descriptive quantitative study by applying k-medoid clustering in the secondary data of Banten in Figures and eliciting information from the Tourism Department of Banten Province. The number of agrotourism sites, the population number, and the number of restaurants were included in the clustering process. The clustering analysis that results in three clusters was validated and visualized via relative and internal criteria. Cluster 1 was the least potential cluster of agrotourism with members of two municipals Tangerang and Tangerang Selatan. Cluster 2 was the most potential agrotourism region which has members of three regions of Pandeglang, Lebak, and Serang and two municipals of Serang and Cilegon. It is characterized by the highest number of agrotourism sites. Cluster 3 was the second potential agrotourism cluster where the regency of Tangerang was the only member possessing the highest population as a potential market.

Citizens and Land: Socioeconomic Effects of Relocation and Resettlement by the Thilawa Special Economic Zone

Abstract: Special economic zones (SEZs) attract investment and political support based on promises of both macroeconomic growth and local economic benefit. Myanmar has numerous SEZs, including those in Thilawa, Dawei, and Kyaukphyu. Recent SEZ legislation requires investors and administrators to maintain the standard of living of communities displaced by the SEZ development. This paper studies the socioeconomic impact on households which have been relocated by the Thilawa SEZ, comparing them with those which remained in their original communities. Relocated households have experienced significantly higher rates of unemployment, debt, and lack of livelihood/income diversity. Due to a greater reliance on food purchases and income insufficiency, relocated households reported higher rates of food insecurity, and nearly one-third reported having taken out loans to meet food shortages in the past year. Overall, the pattern of coping amongst relocated households demonstrates significantly lower levels of resilience than non-relocated households, which results in a rapid erosion of economic capital, and subsequently a decline in future coping capacity. These findings challenge the assumptions around capital-based compensation approaches to relocation programs and argue instead that the process of relocation is best compared to a shock transition to an urban state, characterized by a rupturing of the relationship to land. The ensuing precarity demands a high level of adaptive capacity, which, in turn, requires not only new skills but access to resources, markets, and welfare mechanisms, many of which are not available. If SEZs are to fulfill both the wider economic promise and the legal requirements, a radically different approach to the processes of relocation is needed.

Literature Review and Conceptual Framework: Sustainability Construction of Implementation in Development of Special Economic Zone (SEZ) Likupang

Likupang is one of the national tourism development areas and has been designated as a special economic zone (SEZ). It makes Likupang as the central development of infrastructure such as: Hotels, Resorts and Private Docks. In the SEZ development, several obstacles were found, including the implementation of sustainable construction regulations based on the Minister of Public Works and Public Housing Number 05/PRT/M/2015. These development activities will certainly cause problems in both economic and environmental aspects when sustainable development management is not carried out. This study is an effort to create infrastructure development by using Sustainable Development Construction Approach that supports the development of the Likupang SEZ. This paper is one of the stages of research that will report the results of literature review and conceptual framework as well as the stages that will be carried out from the research. The research result descriptionis the formulation of the application of model concept of sustainable development which will be input to all stakeholders, both government and private sector, in the development of the Likupang SEZ.

Persepsi dan Partisipasi Masyarakat Lokal terhadap Pengembangan Kawasan Ekonomi Khusus Mandalika di Lombok Tengah

The Tourism sector has become one of the drivers of the regional economy, including in West Nusa Tenggara through the development of the Mandalika Special Economic Zone (SEZ) in Central Lombok. The development of this area provides new hope for the welfare of the local community. However, until the development process enters the final stage, there are still pros and cons from the lokal community regarding the development of the Mandalika SEZ. So far, there is no real picture of the perceptions of local communities and their forms of participation in response to these perceptions.This study aims to (1) explore and assess local community perceptions and (2) analyze local community participation in the development of the Mandalika SEZ in Central Lombok. Data were collected using a questionnaire methode, observation and indepth interview from local communities in the three supporting villages of the Mandalika SEZ which had been determined using purposive sampling. The collected data is then analyzed descriptively and interpreted based on literature review. The findings of this study indicate that the local community has a positive perception of the development of the Mandalika SEZ from the enverionmental, socio-culture, and economic aspects. Communities began to be involved and participate in the management of destination. The form of local community participation is classified as consultation within the scope of the Mandalika SEZ development stage, namely two-way communication is established, the local community begins to listen to their ideas and opinions, but the decision and control remains with the developer. Thus, it illustrates that the development of the Mandalika SEZ is currently in the involvement stage and the local community has build their independence in maintaining the conduciveness of the Mandalika SEZ. 

Special Economic Zone, Carbon Emissions and the Mechanism Role of Green Technology Vertical Spillover: Evidence from Chinese Cities.

Although the special economic zones (SEZs) are considered the backbone of rapid economic development in China, it is unclear whether they contribute to green economic development. From the perspective of the localized industrial chains formed as a result of the SEZ policy, this paper aims to analyze and explain how the development of SEZs influences carbon emissions in Chinese cities by promoting green technologies’ vertical spillover along the industrial chain. Based on the panel data of 264 prefecture-level cities from 2011 to 2016 and a relatively new and mostly disaggregated city-level MRIO (multi-region input–output) table in China, this paper constructs green technology vertical spillover as a mechanism variable and discusses the influence theoretically and empirically. The results show that the development of SEZs can reduce a city’s carbon emissions. More specifically, for every 10 m2 increase in the size of the SEZ area, the carbon dioxide emission can be reduced by 0.882 g per m2 of the city area. Moreover, mechanism analysis shows that the development of SEZs promotes green technology vertical spillover inside the city, through which the SEZs reduce the city’s carbon emissions. The mediation effect occupies 21.96% of the total effect. Furthermore, the impact of the development of SEZs on carbon emissions has regional heterogeneity due to the city’s industry structure, green technology stocks, and the zones’ administrative hierarchies. The finding of this study could provide several important implications for regional green development, especially in China.