SEZ – INDIA CONTEXT
Over the past two and a half decades, there has been a proliferation in the number of special economic zones. According to an estimate, in 2005, they accounted for slightly less than 20 percent of exports from emerging and developing economies. Notwithstanding the current hype over SEZs in developing countries, controversies regarding the beneficial effects of SEZs that have been raging since their emergence continue to persist. One of the most controversial aspects of SEZs is their impact on human development and poverty reduction. A significant body of literature now exists addressing the concerns about human development effects of these zones. However, most studies are narrow in scope and are based on case studies or cross sectional surveys. Empirical evidence based on a longitudinal analysis of data is non-existent. This project is an attempt to analyse the poverty reduction effects of SEZs in India using household expenditure surveys for the period from 2002 to 2014. It focuses on Andhra Pradesh, an Indian state with the largest number of manufacturing SEZs and proposes to use difference-in difference technique to analyse the impact of SEZs on poverty levels in the state. The empirical analysis will be supplemented by primary research based on field interviews.
On going Project
Poverty impacts of SEZs in India: A case study
Over the past two and a half decades, there has been a proliferation in the number of special economic zones. According to an estimate, in 2005, they accounted for slightly less than 20 percent of exports from emerging and developing economies. Notwithstanding the current hype over SEZs in developing countries, controversies regarding the beneficial effects of SEZs that have been raging since their emergence continue to persist. One of the most controversial aspects of SEZs is their impact on human development and poverty reduction. A significant body of literature now exists addressing the concerns about human development effects of these zones. However, most studies are narrow in scope and are based on case studies or cross sectional surveys. Empirical evidence based on a longitudinal analysis of data is non-existent. This project is an attempt to analyse the poverty reduction effects of SEZs in India using household expenditure surveys for the period from 2002 to 2014. It focuses on Andhra Pradesh, an Indian state with the largest number of manufacturing SEZs and proposes to use difference-in difference technique to analyse the impact of SEZs on poverty levels in the state. The empirical analysis will be supplemented by primary research based on field interviews.
Assessment of Economic and Social Effects of Newly Notified SEZs in India
The new SEZ policy 2005 has triggered a wide ranging debate in India over the rationale and usefulness of SEZs. In view of the ongoing debate, this study was instituted by the Ministry of Commerce Government of India. The study involves extensive field surveys covering 9 SEZ active states in India. It outlines the evolution of SEZs; traces economic philosophies explaining the rationale and benefits of SEZs; extends existing theoretical literature to explain the economic impacts of SEZs; assesses different dimensions of sustainable development impacts of newly notified SEZs in India; reviews the strategies followed by various state governments in the implementation of the policy ; and discusses the impact of internal dynamics and external forces on the future prospects of SEZs. It argues that the existing economic theories do not adequately explain the rationale and contribution of SEZs. These approaches need to be extended by integrating the provisions of the theories of agglomeration economies and global value chains within the existing theoretical frameworks. It analyses the economic, social and environmental impacts of SEZs within the extended theoretical framework. The findings of the study were published by OUP in a monograph.
