REFLECTIONS ON EXPLOITING THE POTENTIAL OF SPECIAL ECONOMIC ZONES

The proliferation of Special Economic Zones (SEZs) has globally prompted many researchers to question the key factors that determine their performance over time. The literature attributes different types of static (short-term) and dynamic (long-term) benefits to SEZs. Due to partial and not always available data, studies have largely been oriented towards evaluating SEZs through their static outcomes. Instead, greater complexity has emerged in evaluating the effects of a zone-based programme in the long term. In particular, dynamic benefits include the indirect and spill-over effects of SEZs on the competitiveness of indigenous companies and the territory. There is no single programme that is valid for all contexts. But the success or failure of a SEZ or a scheme of SEZs depends on both exogenous and endogenous factors. Indeed, their different combinations are likely to affect the performance of the zones and steer development towards a system-wide extension of the industrial capacity frontier.