AMITY BUSINESS SCHOOL
Dissertation Synopsis

Name of the Student: Ishan Kashyap : MBA (M&S)
AUUP Enrollment No: A0102212127 , Class Roll No. C- 29
Contact No. - +9555449830 E-Mail id: ishan2989@yahoo.com
Name of Faculty Guide: Ms. Tavishi

DESSERTATION TITLE
Externalities of Special Economic Zone.
RATIONALE OF THE PROPOSED INVESTIGATION
For developing countries, special economic zones (SEZs) traditionally have had both a policy and an infrastructure rationale. In terms of policy, the SEZ can be a useful tool as part of an overall economic growth strategy to enhance industry competitiveness and attract foreign direct investment (FDI). Through SEZs, governments aim to develop and diversify exports while maintaining protective barriers, to create jobs, and to pilot new policies and approaches (for example, in customs, legal, labor, and public private partnership aspects). SEZs also allow for more efficient government supervision of enterprises, provision of off-site infrastructure, and environmental controls.
The category SEZ includes free trade zones (FTZ), export processing Zones (EPZ), free Zones (FZ), industrial parks or industrial estates (IE), free ports, free economic zones, and urban enterprise zones.

LITERATURE REVIEW 1) Introduction
In this research paper sector specific studies are conducted that analyze efficiency and its variations over the years and studies attempting to shed light on variations in terms of efficiency across major Indian states. These studies explored both stochastic and parametric approaches with respect to the efficiency estimation issue. However, in the context of SEZs, there exist no studies that analyze efficiency aspect of these enclaves either within the SEZs or across zones over the period. The issue of efficiency in the context of functioning of SEZ indisputably forms the core of policy goals. In the case of SEZs, the efficiency issues assumes greater prominence considering the special facilities extended to these enclaves, which in turn, are expected to set benchmarks in terms of performance standards and also because these are considered the engines of growth in the trade sector. In this context, it is important to explore the levels of efficiency of these enclaves in India and the related changes over the years, specifically to analyze the impact of SEZ policy intervention on the performance of these enclaves. It is important to analyze the issue of efficiency with respect to these enclaves along with an outline of trends and patterns in the context of trade related performance.
In this paper focus on the issues pertaining to the establishment, sanctioning procedures, land grabbing and protests against the SEZ policy. In the melee, the major issue of economic utility (if any) of SEZs is forgotten or not bothered about. It is known that the laudable objectives of the SEZ policy promise to improve the efficiency in trade and an increase in the production of tradable goods in order to attract foreign exchange. It is necessary to question if this objective has been achieved in respect of implementation. In this paper, along with an analysis of the issue of efficiency of SEZs within the framework of stochastic production frontier technique, we have tried to address the questions raised above. Although the efficiency scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000-01), it is far below the threshold level as identified in the literature, thus, indicating a larger scope for improvement in efficiency of the existing enclaves. Of the seven conventional SEZs, Santacruz SEZ farer relatively better than others operating on the same production frontier in terms of performance. Besides, one also can observe the emerging contradiction between better export earning zones and efficient zones, which might as well prove a challenge to the policymakers. On the determinants side, besides policy intervention large geographical area accompanied by clustering of units is found to have impacted positively the efficiency scores of these enclaves.

L Tantri , M. (2011)

Objective * To analyze the effectiveness of SEZ policy over EPZs structure

* To identify the factor influencing growth & examining measures for reducing poverty.
Research Methodology * Secondary Data :-

Secondary data has been obtained from the Development Commissioner (DC) Office of the respective zones. * Analysis
Regression is used

Output = f (Labour, Raw Material, Capital Stock)
Cobb-Douglas production function in the present analyze
.
Ln (Xit) = a + b1 ln Lit + b2 lnRit+ b3 lnCGit+ vit + μit μ it = d0+ d 1 ln AZit + d2 lnDUit+ d 3lnGiit+ d4PolicyDummy + Wit
X, represents the Rupee value (at Constant Prices) of exports of zone i in the year t; RM, represents the value of Raw Material Imports (the Rupee value at Constant Prices) of zone i in the year t; L, stands for the total Labour employed in the zone i in the year t; CG, denotes Capital Goods Imports of zone i in the year t; Vit are random variables, assumed to be independently and identically distributed (IID) with N (O,su 2 ); Wit are non negative random variables which are assumed to account for export inefficiency and also are assumed to be independently distributed with mean it and variance su 2; AZit is the Total Area of zone i in the year t; DUit denote It is Concentration of units of zone i in the year t (Ratio of exporting units to the area of a zone. This captures clustering of units); Giit is Government investment of zone i in the year t; Policy Dummy: (Dummy variable (0= for EPZs and 1 for SEZs period) to capture policy changes occurring in the year 2000-01; i= 1,2, 3, 4, 5, 6, 7 is zone and; t = 1985-86, 1986-87,……………….. 2007-08 is the time period under consideration; ln denotes natural logarithm.

Area of Research
Seven major conventional SEZs (converted from EPZ to SEZ) namely Kandla (KSEZ), Santacruz (SSEZ), Noida (NSEZ), Cochin (CSEZ), Madras/Chennai (MSEZ), Falta (FSEZ), Vizag (VSEZ).

2) Introduction
This study proposes a generic theoretical framework which identifies various variables subsequently leading to superior firm performance. Further related intermediate variables are identified to develop hypothesis for assessing the impact of location strategy on the competitiveness of the firm, established in an SEZ. The further scope of the paper lies in empirically testing the proposed framework by using structural equation modeling in a specific industry or a sector.
Competitiveness has emerged as an important discipline in the area of strategy and research efforts have brought many interesting perspective and frameworks at the country, industry and firm level. Seeing competitiveness from competence point of view, role of factors, internal to the firms such as firm’s strategy, structures, competencies and capabilities and other tangible resources lead to competitive success of a firm. This is recognized as Resource Based View towards competitiveness. Location decision of a firm has been subject for empirical researches and literature suggests that location can be a contributing factor to the competitiveness of a firm.
The impact of location on the firm performance has been the subject for research and special economic zones, as a specialized location, have provided ease to use business location along with advance infrastructure and other facilities to enhance competitiveness at the country level. Special Economic Zones (SEZ) have emerged as a popular strategy adopted by various countries, particularly the developing countries, to increase their trade competitiveness. Zones have gained currency in these dynamic times to experiment with the market economy and to impart outward looking orientation to the economy. The ever increasing competition has also put firms on a look out to find new methods and strategies to remain competitive and to survive in these turbulent periods of time.
Dhingra , T .Dr.Sinha , A. Dr.Singh, T.(2008)

Objective * To highlight the importance of location and its impact on firm competitiveness.

Research Methodology * Secondary Data
Data is collected from :-CII report(2008), IDFC(2001), Smart& Hsu(2004),Wei Gi(1999),OTA(2003), Madani(1998), Ryan et al(1993), Madani(1999), Cling & Letilly (2001)

* Primary Data
A questionnaire is prepared to collect primary data & question related to location strategy of the firm was investigated by modeling the interrelationship between firm location and variables/functions which leads to superior firm performance (F7). Five sets of broad explanatory functions (factors) were integrated that explain firm competitiveness/superior firm performance in a SEZ.

Two possible approach are adopted to study the impact of location on superior performance one direct and another indirect. Location competitiveness of a firm in SEZ cannot be directly measured so it is done through intermediate variables and its effect on firm performance.

3) Introduction

This paper examines 30 years of experience in zones, reviewing development patterns and economic impacts of zones worldwide. The experience shows that while zones have been effective in addressing economic growth and development objectives, they have not been uniformly successful; successes in East Asia and Latin America have been difficult to replicate, particularly in Africa, and many zones have failed. Moreover, since the onset of zone development in developing countries, concerns have been raised about the impact of zones on employment (in terms of gender, wage levels and benefits, worker rights and work conditions), the environment, and related social factors.
Most of these studies, however, focus on government, -developed, and -operated zones. They often miss the fact that there have been dramatic changes in the ways in which zones have been conceived, developed, managed, regulated and governed in the past two decades. These include the growing prominence of private sector developed and run zones; the use of public-private partnerships for zone development; the implementation of World Trade Organization (WTO)-compliant policy and incentive frameworks; and innovative regulatory frame-works. These changes have important implications for the economic impacts of zones, and offer significant lessons to policymakers on how to maximize zone success. The number of zones and the number of countries hosting zones, particularly Organization for Economic Co-operation and Development (OECD) economies, continues to grow. This trend raises a number of questions: What is the continuing rationale for zones in the face of global trade liber-aviation? And why do zones continue to expand in industrialized countries that already offer low duty.

Akinci, G. & Crittle, J. (2008)

Objective * To determine rapid proliferation and economic impacts of special economic zones * To identify the factor affecting the development of SEZ

Research Methodology * Secondary Data
This research is solely based on the secondary data which is collected from various sources (UNCTAD) 2004. World Investment Report 2003: FDI Policies for Development, Harvard Institute for International Development, Continuing Assistance on Economic Reform II Discussion Paper no.78. War, P. 1989. “Export Processing Zones: The Economics of Enclave Manufacturing. Williams, E. 1995. World Bank. 1992.

Area of Research
Include: the America; Asia and the Pacific; the Middle East and North Africa; Western Europe; Central and Eastern Europe and Central Asia; and Sub-Saharan Africa.

4) Introduction
This case study basically talks about the how the Indian politics and different factors affecting the SEZ. How special economic zones low ,rules and regulations changes with time. Exim Policy introduced in 2000. Policy regimes have been formulated in various states pursuant to the central SEZ Act, and these (as well as the Government of India’s own SEZ guidelines) have been revised in several respects on a number of occasions. Moreover, ‘implementation’ has moved forward rapidly.

This paper assesses the political dynamics that have arisen in the wake of the Act’s passage. Its larger objective is to determine what these might reveal about the politics of economic reform in India more broadly. There are inherent dangers in using a single policy domain to derive generalizations about processes of much broader scope. This is especially true of a policy still in its infancy. On the other hand, if ever a single policy initiative were capable of serving as a microcosm for the politics of reform it would be
India’s SEZ Act, which intentionally draws within its ambit such diverse issues as investment (domestic and foreign), trade, taxation, industrial relations, land-use and land reform, environmental sustainability, and others of an even more specialized nature. The Act also affects the policy environment facing state governments; indeed, it requires their active involvement to achieve its objectives. There are implications for the functioning of India’s system of local government as well.
The political actors concerned are similarly diverse, including almost all political parties, a huge range of business interests and associations (each concerned with the broad policy framework, and many with an intense interest in rules applicable to their sector), bureaucratic actors with turf to protect, and a staggering array of movement groups spread throughout India. Many of the issues involved in implementing the SEZ policy lend themselves to litigation that will have strong political repercussions, especially where these involve land and taxation. Some cases are likely to be of constitutional significance.
Jenkins, R.(14-16 September 2007)

Objective * To determine the impact of Indian politics on SEZ. * To analyze how lows for SEZ changing according to different circumstance.

Research Methodology
This case study is completely based on the data collected from different sources. This data is simply analyze by comparing the scenario in different area and time.

OBJECTIVES * To determine the impact of SEZ in investment of foreign & domestic source. * To measure the impact of SEZ in to empowerment, growth, income & life style of people involves in it.
MAJOR HYPOTHESIS Hypothesis will be develop latter accordingly.
MATERIALS AND METHODS * Secondary Data is collected from various research papers, journals, articles & different websites. * Primary Data is collected by a structured questionnaire which is filled by the workers at the SEZ. 1. Well prepared and formed questionnaire. 2. Tools and Software like Microsoft Excel and SPSS. 3. Questionnaire will be a combination of objective and subjective questions. * Scaling Technique: Nominal, Interval scale and Likert Scale will be used. * Sampling Process: Convenience sampling. * Sample Size : 100-200 * Area of Research : Noida

TENTATIVE CHAPTERWISE DETAILS OF THE PROPOSED RESEARCH
Chapter -1 Introduction
Chapter -2 Literature Review.(Is the secondary data source which helps in understanding research objective more precisely )
Chapter -3 Research Objectives & Methodology.(Objective is what we want to find out and conclude by a specific research and methods are that which used to collect information and to analyze them )
Chapter -4 Data Analysis.(Data which has been collected is analyze by using various tools & technique)
Chapter -5 Findings. (The result which came out after analyzing the data)
Chapter -6 Conclusions & Recommendations. (Suggestion which are given on the basis of the finding of the research) Reference (Sources from data is collected)
Annexures (Is a term substituted in some legal documents for appendix)

REFERENCES CITED * Akinci, G. & Crittle, J. (2008). “Special Economic Zone Performance , Lessons Learned, & Implication for Zone Development“,World Bank Group(2008) H Street, NW ,Washington, DC 20433 * Dhingra ,T. Dr. Sinha , A. Dr. Singh ,T.(2008) . “Location strategy for competitiveness of Special Economic Zones in India – A Generic framework” Motilal Nehru National Institute of Technology (Deemed University), Allahabad * Jenkins, R.(14-16 September 2007) “The Politics of India’s Special Economic Zones”, Research Colloquium: ‘India’s Great Transformation?, Columbia University. * L Tantri,M.(2011) “Special Economic Zones in India: Are these Enclaves Efficient?” , Copyright Reserved The Institute for Social and Economic Change, Bangalore ISBN 978-81-7791-130-5

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