Effectiveness of the Special Economic Zone policy over the Export Processing Zone structure in India: trade performance at the aggregate level
Empirical evidence on the effectiveness of recent India's Special Economic Zone (SEZ) policy over Export Processing Zone structure is analysed in this article by aggregating data of seven conventional SEZs from 1986–1987 to 2007–2008. The study reveals that introduction of SEZs in place of its predecessor, the Export Processing Zone, is having a significant and positive impact on its trade performance at the aggregate level. However, in terms of contribution to national trade, the Indian SEZs are lagging way behind the expectations of policymakers. Furthermore, the SEZ policy does not seem to be successful in diversifying the exports basket, which in turn has affected the direction of exports by the SEZs. Moreover, these zones were found to be highly susceptible to external shocks. Thus, we strongly argue in favour of a care in deciding the sectoral choice of SEZs and careful scrutiny of its approval across major Indian states.
Export Processing Zones in Asia
Since the 1960s, many developing countries have implemented export-oriented growth strategies, that is, custom-free manufacturing, to promote industrialization. The Export Processing Zone (EPZ) is perhaps the most common form in which this strategy has been implemented. An EPZ can be defined as an industrial enclave that engages in export manufacturing with the assistance of foreign investment and enjoys preferential treatment that is not generally available in the rest of the country. But it is not the only form of custom-free manufacturing. Based on the experience of other EPZs in Asia, China developed its open-door policy further by creating Special Economic Zones (SEZs) in 1979 and the early 1980s aimed not only at export-oriented industrialization but also the promotion of national development and as laboratories for the ongoing economic reform. Another type of custom-free manufacturing that has been introduced is the Export Processing Factory (EPF) or Custom Bonded Factory (CBF), which produces exports and receives preferential treatment irrespective of location. This study seeks to provide a systematic analysis of why the EPZ became attractive to governments of developing countries, especially in Asia; demonstrate the extent EPZs in Asia have conformed to their claimed objectives; and explore the conceptual pitfalls embedded in this strategy. We propose that the EPZ became attractive because it offers a variety of advantages including a compromise between liberal and protective regimes, a gateway to the international community, lower operational costs, and smaller political risk. But despite high expectations by host governments and international organizations, EPZs in Asia have generated mixed performances, and several
The economic health of dentistry: past, present, and future.
Important changes in dentistry during the past two decades include a declining caries incidence, an increase in the number of dentists, greater competition for patients, and the spread of retail dentistry and alternative plans for financing and delivering dental services. Dire predictions about the effects of these changes often have not been based on facts. This article uses available data to examine the profession's economic prospects.