Drivers and Barriers for Successful Special Economic Zones (SEZs): Case of SEZs under China Pakistan Economic Corridor

Saira Naeem, Abdul Waheed and Muhammad Naeem Khan
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Saira Naeem: National Institute of Transportation SCEE, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Abdul Waheed: National Institute of Transportation SCEE, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Muhammad Naeem Khan: Department of Business Administration, IQRA University, Islamabad 44000, Pakistan

Sustainability, 2020, vol. 12, issue 11, 1-18

Abstract: Over the last three decades, special economic zones (SEZs) have given new impetus to the ever-growing export-oriented industrialization in developing countries. Where various economies have benefited from SEZs, many zones have ended up becoming enclaves with trifling advantage. The SEZs in Pakistan have experienced the same fate and have failed to contribute to exports, employment, and creating linkages with the domestic economy. Recently under the China Pakistan Economic Corridor (CPEC), SEZs are proposed to be set up in Pakistan, with a hope to fuel the stuttering economy. However, it is pertinent first to understand the local context and device policies considering stakeholders’ perspectives. This study aims to identify the factors for the successful implementation of SEZs derived from the regional context of Pakistan. In-depth interviews are conducted from the most relevant stakeholders, who have been involved in the development of SEZs. The results pointed towards the removal of political influence over zones and government taking the lead role in deciding the types of industry to be invited in these zones. Each zone should have a clear vision of development based on its locational advantage. The zone promotions should be based on competitiveness rather than fiscal incentives. Joint ventures and PPP should be encouraged inside the zones for sustainable operations.

Keywords: special economic zones; small medium enterprises; joint ventures; export lead industrialization; developing economies; industrial clusters (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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