Industrial clusters: The case for Special Economic Zones in Africa

Carol Newman and John Page

No wp-2017-15, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Firms tend to cluster in close geographic proximity to each other to benefit from reduced transport costs, shared inputs, and productivity spillovers due to learning and technology transfers. Evidence from low-income countries suggests that such agglomeration economies may be substantial in endogenously formed clusters. This raises the question of whether spatial industrial policies can be designed to facilitate clustering. In this paper, we consider the case for creating Special Economic Zones (SEZs) in Africa.

Keywords: Agglomeration; Special Economic Zones; Spatial industrial policy; Africa (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (16)

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