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Impact Of Special Economic Zones On Employment, Poverty And Human Development

Working Paper No. 194




Impact of Special Economic Zones on Employment, Poverty and Human Development
Aradhna Aggarwal
May 2007

Contents
Foreword........................................................................................................................i
Abstract.........................................................................................................................ii

1. Introduction.............................................................................................................1

2. Human Development and Poverty Reduction Effects of Zones: An Analytical Framework ..............................................................................................................2

2.1 Employment Effects............................................................................................2

2.1.1 Direct employment generation...............................................................2

2.1.2 Indirect employment generation ............................................................3

2.1.3 Employment for Women.........................................................................3

2.2 Skill Formation (Human Capital Formation) Effects......................................4

2.3 Technology Upgrading Effects...........................................................................5

3. Are SEZ Effects Unambiguous? Review of the Literature ................................7

3.1 Direct Effects.......................................................................................................7

3.1.1 Employment Effects......................................................................................7

3.1.2 Skill (human capital) Formation Effects.....................................................12

3.1.3 Technology Transfer and Technology Creation Effects .............................13

3.2 Indirect...