Chapter

Economic Impact of SEZs

Aradhna Aggarwal

in Social and Economic Impact of SEZs in India

Published in print February 2012 | ISBN: 9780198077275
Published online September 2012 | e-ISBN: 9780199081035 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198077275.003.0008
Economic Impact of SEZs

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This chapter provides a systematic analysis of the role of special economic zones (SEZs) in industrialization, modernization, and economic restructuring in India by focusing on those economic aspects of SEZs which are not easily quantifiable. These are, for instance, technology transfers, technological spillovers, and backward and forward linkages. In particular, it analyses the impact of SEZs on productive and regional diversification through direct and indirect channels. The analysis is based on field surveys conducted during 2006–9. The analysis shows that SEZs have the potential of being a catalyst in the process of industrial diversification in India. Unfortunately, these are not fully appreciated. It requires strategic planning to exploit the SEZ-induced agglomeration effects by facilitating the growth of local networks.

Keywords: diversification; SEZs; backward and forward linkages; technology transfers; technology spillovers; industrialization, modernization

Chapter.  11568 words.  Illustrated.

Subjects: Economic Development and Growth

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