Are special economic zones products of corruption?
Journal of Entrepreneurship and Public Policy
ISSN: 2045-2101
Article publication date: 14 July 2022
Issue publication date: 25 October 2022
Abstract
Purpose
These zones offer participants a wide variety of incentives and can be found in sizes ranging from a few square acres to entire large cities. The diversity among SEZs presents an opportunity for new research.
Design/methodology/approach
Special economic zones (SEZs) have grown exponentially in popularity during the past few decades, in size and scope. They are often lauded as instruments central to enhancing economic growth in developing countries. However, the empirical evidence on the relationship between SEZs and growth is inconclusive.
Findings
The analysis concludes that corruption leads to the creation of smaller zones that are likely the products of rent-seeking.
Originality/value
The authors argue that SEZs can be effective vehicles for rent-seeking, especially geographically small zones and develop an empirical model to explore the relationship between zone size and the impetus for the zone creation, namely corruption. Specifically, the authors analyze whether these small zones are vehicles of economic growth or manifestations of country wide corruption.
Keywords
Citation
Norgaard, J.R. and Cartwright, A.C. (2022), "Are special economic zones products of corruption?", Journal of Entrepreneurship and Public Policy, Vol. 11 No. 2/3, pp. 192-209. https://doi.org/10.1108/JEPP-04-2022-0054
Publisher
:Emerald Publishing Limited
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