Special Economic Zones
A Global Perspective
This chapter highlights the evolutionary process of special economic zones (SEZs) and their performance in 22 selected countries across the world. Drawing upon the existing literature, historical evidence, and the official websites, the analysis suggests that most countries are focusing upon expanding and/or upgrading their zones with generous incentives, to take advantage of the potential of SEZs in this globalized economy. In initial stages of growth, SEZs were used as a reactive way to make up for institutional bottlenecks of the economy but, over time, governments have increasingly been using them proactively as a means to push industrial development in new directions. While successful countries are extending them to newer directions, not-so-successful countries are not deterred by their failures. They seem be resolute to take bolder measures to emulate the success of successful countries.
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