Formation of SEZ using agricultural land with a view to promote industrialization has recently been one of most controversial policy issues in many developing economies including India. This paper theoretically evaluates the consequences of this policy on a developing economy in terms of a...

Making use of a global partitioning (disintegration) approach, a novel necessary and sufficient condition for the creation of Pareto-improving special economic zones is derived. It is shown that the establishment of a special economic zone may be desirable even if foreign investment has an...