Special Economic Zones: A Catalyst for International Trade and Investment in Unsettling Times?

Abstract

Abstract In the present unsettling times, the world is in need of an effective catalyst to drive the growth of international trade and investment. Special economic zones (SEZs) may have the strong potential to serve as such catalyst. Drawing on the experience of SEZs around the globe, this article seeks to illustrate how to make an SEZ work and how to do it right. In particular, the experience of the Hong Kong Special Administrative Region of the People’s Republic of China can provide useful insights in this regard. This article will also look at how changing global trade and economic environment has given rise to new challenges and opportunities for SEZ development, including innovation in dispute resolution mechanisms, synergy with free trade agreement initiatives, greater use of modern technology, a ‘green’ development model and collaboration and partnerships among governments as well as international organizations.