A Comparative Analysis of Socio-Economic Development in Communities Near Special Economic Zones: A Global and Indian Perspective

Mohd Salman; Syed Shahid Mazhar; Farhina Sardar Khan; Prabhat Mittal

doi:10.52756/ijerr.2024.v41spl.012

Authors

Mohd Salman Department of Commerce and Business Management, Integral University, Lucknow. U.P. India https://orcid.org/0009-0008-2867-2980
Syed Shahid Mazhar Department of Commerce and Business Management, Integral University, Lucknow. U.P. India https://orcid.org/0000-0003-1449-1480
Farhina Sardar Khan Department of Commerce and Business Management, Integral University, Lucknow. U.P. India https://orcid.org/0000-0002-6365-6299
Prabhat Mittal Department of Business Data Processing, Satyawati College (E.), University of Delhi, Delhi, India https://orcid.org/0000-0001-5352-7955

DOI:

https://doi.org/10.52756/ijerr.2024.v41spl.012

Keywords:

Export promotion, employment, international investment, special economic zones (SEZs), socio-economic development, sustainable development

Abstract

The study examines the socio-economic effects of Special Economic Zones (SEZs) on adjacent communities nationally and globally. It assesses how SEZs promote industrial expansion, draw foreign investment and enhance local economic development, focusing on their impact on neighbouring areas. By comparing data from various countries, the research identifies common challenges and successes, highlighting the superior performance of Indian SEZs. Indian SEZs outperformed others in policy implementation and operational efficiency, with a mean score of 3.488 versus 2.940 for other countries, showing significant statistical relevance (p-value < 0.001). The t-value is 60.660 for Indian SEZs and 49.000 for those in other nations, each with 499 degrees of freedom. The 95% confidence interval for the mean difference is 3.375 to 3.601 for India and 2.822 to 3.058 for other countries. The comparison between policy implementation and operational performance of SEZs in India and those in other countries reveals notable differences. The mean score for policy implementation and operational performance in Indian SEZs is 3.488, while the mean score for SEZs in other countries is 2.940. This suggests that, on average, SEZs in India are perceived to be more efficient than their counterparts in other countries. The study addresses key questions: How do SEZs impact socio-economic growth in nearby communities? How do Indian SEZs compare to those in other countries? Regression analysis confirms that communities near SEZs see greater socio-economic development, with a Beta value of 0.707 indicating a strong positive correlation. These findings contribute to policy debates and guide future research on maximizing SEZ benefits for inclusive and sustainable development.

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