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Studies on China’s Special Economic Zones 4A New Structural Economics Perspective on the Ethiopian SEZs: A ‘Shenzhen Miracle’ in Africa in the Making?

Studies on China’s Special Economic Zones 4: A New Structural Economics Perspective on the... [This paper analyzes how Ethiopia has been trying to follow the Chinese experience of SEZ-led development. My analysis is based on the theories of New Structural Economics (NSE) and exploits a unique dataset of three waves of field interviews gathered in Ethiopia. I first analyze the binding constraints that are holding the Ethiopian economy back from realizing its latent comparative advantage; then I use these primary data to analyze to what degree the SEZs in Ethiopia have been able to resolve these binding constraints and contributed to structural transformation. The identified constraints are access to finance, electricity, customs and trade regulation, weak local supply chains and a lack of industrial culture. On average they definitely improved the business environment but many of the issues still remain, but at a lower level of intensity. The macroeconomic data suggests that no structural transformation took place due to the SEZ program. Policy recommendations will be provided.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Studies on China’s Special Economic Zones 4A New Structural Economics Perspective on the Ethiopian SEZs: A ‘Shenzhen Miracle’ in Africa in the Making?

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Publisher
Springer Singapore
Copyright
© Social Sciences Academic Press 2021
ISBN
978-981-16-5631-6
Pages
103 –135
DOI
10.1007/978-981-16-5632-3_6
Publisher site
See Chapter on Publisher Site

Abstract

[This paper analyzes how Ethiopia has been trying to follow the Chinese experience of SEZ-led development. My analysis is based on the theories of New Structural Economics (NSE) and exploits a unique dataset of three waves of field interviews gathered in Ethiopia. I first analyze the binding constraints that are holding the Ethiopian economy back from realizing its latent comparative advantage; then I use these primary data to analyze to what degree the SEZs in Ethiopia have been able to resolve these binding constraints and contributed to structural transformation. The identified constraints are access to finance, electricity, customs and trade regulation, weak local supply chains and a lack of industrial culture. On average they definitely improved the business environment but many of the issues still remain, but at a lower level of intensity. The macroeconomic data suggests that no structural transformation took place due to the SEZ program. Policy recommendations will be provided.]

Published: Jan 1, 2022

Keywords: Special economic zones; New structural economics; Ethiopia

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