Paul Collier, Michael Blake, Tewodros Gebrewolde, Priya Manwaring

Keywords： Special Economic Zones; Industrial Parks; Industrialisation; Ease of Business; Trade Facilitation

Abstract：

In order to boost manufacturing and reduce reliance on primary commodities, many African countries are looking towards Special Economic Zones. These zones can raise productivity by clustering firms, attracting foreign direct investment (FDI), and boosting exports. But to be successful, special economic zones (SEZs) depend on a helpful policy environment. The conventional focus of policy has been on infrastructure and tax incentives, but other reforms that make business easier can have a big impact while being cheap and simple. Without them, a SEZ would end up being an expensive ‘white elephant’. We show that (within ease of business policies) trade facilitation policies can be particularly valuable.

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