Special Economic Zones in Developing and/or Transition Economies: a Policy Proposal

Albert Schweinberger

Review of International Economics, 2003, vol. 11, issue 4, 619-629

Abstract: Making use of a global partitioning (disintegration) approach, a novel necessary and sufficient condition for the creation of Pareto‐improving special economic zones is derived. It is shown that the establishment of a special economic zone may be desirable even if foreign investment has an immiserization effect. The present approach allows not only for the use of mobile but also immobile domestically owned factors in the special economic zone. Adopting a political economy perspective, multihousehold economies with and without the feasibility of lump‐sum compensation are modeled. It is shown that, subject to a certain condition, the setting up of special economic zones accompanied by appropriate tax policies results in an increase in government revenue. The latter may be used to finance much‐needed investment in infrastructure or the production of public goods.

Date: 2003
References: View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/1467-9396.00407

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:reviec:v:11:y:2003:i:4:p:619-629

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is currently edited by E. Kwan Choi

More articles in Review of International Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().