Impact of Industrial Clusters
Impact of Industrial Clusters on Employment, Human Development and Poverty in Selected Asian Countries
This study funded by the United Nations development Programme (UNDP) focuses on the human development effects of SEZs. Although labour standards, labour relations and employment effects have been the most critical and controversial elements of SEZs, a comprehensive analysis on these aspects is scarce in the Indian context. This study aims at examining the impact of Special Economic Zones (SEZs) on human development and poverty reduction in India. It identifies three channels through which SEZs address these issues: employment generation, skill formation (human capital development), and technology and knowledge upgradation. It examines how the impact of SEZs is passed through each of these channels. It involves two surveys conducted simultaneously: one of entrepreneurs in selected zones and the other of labour employed in their units. In all, 75 units were selected across three SEZs and two fully structured surveys were administered. The study finds that the human development effects of SEZs differ significantly according to the characteristics of the SEZs, in particular, the level of their development as reflected in the composition of economic activities.
