scholarly journals Agglomeration, Misallocation, and (the Lack of) Competition

2021 ◽  
Vol 13 (4) ◽  
pp. 483-519
Author(s):  
Wyatt J. Brooks ◽  
Joseph P. Kaboski ◽  
Yao Amber Li

Industrial agglomeration policies may limit competition. We develop, validate, and apply a novel approach for measuring competition based on the comovement of markups and market shares among firms in the same location and industry. Then we develop a model of how this reduction in competition affects aggregate income. We apply our approach to the well-known special economic zones (SEZs) of China. We estimate that firms in SEZs exhibit cooperative pricing almost three times as intensively as firms outside SEZs. Nevertheless, we model the aggregate consequences of SEZs and find positive effects because markups become higher but also more equal. (JEL D22, L60, O14, O18, P25, P31, R32)

2021 ◽  
pp. 186810262199348
Author(s):  
Jan Knoerich ◽  
Liliane Chantal Mouan ◽  
Charlotte Goodburn

While China’s experience of using special economic zones (SEZs) for advancing economic development is a model increasingly adopted in other developing countries, the processes involved in replicating this model elsewhere and the outcomes of such replication remain little understood. This review article’s nested examination of three relevant strands of literature and two case studies of India and Ethiopia indicates that successful replication of China’s SEZ-led development would involve deliberate processes of adaptation from the original model. Replication must be “smart,” by taking into account the temporal, systemic, and other discrepancies between the Chinese model and the replicating country; replicating the benefits of China’s approach whilst avoiding the drawbacks; and maximising the positive effects of direct Chinese involvement and investments while reducing negative repercussions.


Author(s):  
Thomas Farole ◽  
Gokhan Akinci

2016 ◽  
Vol 11 (1) ◽  
pp. 45-57
Author(s):  
Dorota Sobol

The aim of the article is to present the influence on the labour market of enterprises with participation offoreign capital in special economic zones (SEZ) in Poland. The research utilised selected results of the surveys conducted among enterprises with participation of foreign capital operating in all Polish special economic zones for the scientific project called Foreign direct investments in the special economic zones of Poland'. These findings are complemented by opinions from management boards of all the zones in Poland concerning the influence of the foreign direct investments (FDI) located in the individual zones on the labour market of the region in which they operate.


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