Abstract:
In this paper, the efficiency of seven conventional Special Economic Zones in India is
analyzed, by adopting a stochastic production frontier technique, for the period
between 1986–1987 and 2007–2008.Results indicate that although the efficiency
scores of these enclaves have improved over the years, specifically with the introduction of the SEZ policy (2000–2001), it is far below the threshold level as identified in
the literature. Besides, one can also observe a discrepancy emerging between better
export earning zones and efficient zones. On the determinants side, policy intervention
and large geographical area, accompanied by clustering of units, are found to have
impacted the efficiency scores of these enclaves positively.
