The Political Economy of Special Economic Zones
46 minutos The Political Economy of Special Economic Zones Lotta Moberg Abstract This paper is a first attempt to apply a robust political economy framework to explain when Special Economic Zones (SEZs) can contribute to economic development. In a robust political economy, institutions channel the actions of self-interested individuals to promote economic progress. SEZs can promote economic growth, but tend in the wrong institutional context to foster misallocated investments and skewed incentives. Policy makers that introduce SEZ must overcome the knowledge problem to avoid Continue lendo→