What draws investment to special economic zones? Lessons from developing countries

Frick, Susanne A. ORCID: https://orcid.org/0009-0007-0885-7331 and Rodríguez-Pose, Andrés 2023. What draws investment to special economic zones? Lessons from developing countries. Regional Studies 57 (11) , pp. 2136-2147. 10.1080/00343404.2023.2185218

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Abstract

Special economic zones (SEZs) are a popular policy tool for the promotion of economic development. However, questions remain about their economic contribution and about what aspects of SEZ policies are most relevant to investors. This article sheds light on these issues by comparing SEZs across Africa, Asia and Latin America. We find that while investment decisions by foreign companies are driven by market access, political stability and low labour costs, adequate SEZ policies facilitate the attraction of investment. A good industrial infrastructure together with a strategic location and service provision within the zones draw investment. Fiscal incentives, by contrast, have a limited influence on investment decisions.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Geography and Planning (GEOPL)
Publisher:	Taylor and Francis Group
ISSN:	1360-0591
Date of First Compliant Deposit:	19 January 2024
Date of Acceptance:	24 October 2021
Last Modified:	19 Jan 2024 11:45
URI:	https://orca.cardiff.ac.uk/id/eprint/165677

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