Available via license: CC BY-NC-ND 4.0
Content may be subject to copyright.
Heliyon 10 (2024) e34411
Available online 9 July 2024
2405-8440/© 2024 Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/4.0/).
Research article
Matching comparative advantages to special economic zones for
sustainable industrialization
Isah Ibrahim Danja
*
, Xingping Wang
School of Architecture, Southeast University Nanjing, China
ARTICLE INFO
Keywords:
Africa
Comparative advantages
Economic development
Industrialization
Special economic zones
ABSTRACT
African countries are consistently trying to leverage industrialization to advance their economic
development. Despite possessing favorable factors such as abundant natural resources, a surplus
of low-cost labor, and an increasing number of established Special Economic Zones (SEZs), Af-
rican countries are yet to fully maximize their potential and achieve sustainable and inclusive
industrialization. This study explores the comparative advantages of African countries to deter-
mine the types of SEZs that can effectively accelerate industrialization. By leveraging the unique
strengths and resources of each country, customized strategies for SEZs can be developed to
attract investments, promote technological advancements, and foster sustainable economic
growth. The research utilizes the Revealed Comparative Advantage (RCA) matrix, which is
grounded in Ricardian trade theory, examining trade data spanning from 2011 to 2021 to eval-
uate the competitive export capabilities of various countries. The ndings consistently reveal that
the selected countries (Ghana, Ethiopia, and South Africa) possess a signicant and consistent
comparative advantage in natural and agricultural resources compared to other sectors. Estab-
lishing SEZs that focus on these sectors can generate substantial socio-economic impacts,
including attracting investments, creating employment opportunities, enhancing export capac-
ities, stimulating economic growth, fostering linkages, facilitating skills and technology transfer,
promoting spillover effects, encouraging specialization, developing infrastructure, and supporting
value addition in agribusinesses. The result of this study will contribute to policy discussions and
aid decision-making processes for policymakers, investors, and development practitioners in their
efforts to advance industrial development across Africa.
1. Introduction
Industrialization is a critical element in achieving economic growth and must be an integral part of every country’s development
strategy. This viewpoint is shared by global and regional development frameworks such as Agenda 2063 and the Sustainable
Development Goals, which recognize industrialization as a key solution to address Africa’s economic vulnerabilities and promote
successful implementation of the agendas (A2063, SDGs 2030) [1]. Industrialization is a vital component in the development of
physical and human resources. It serves as a bridge linking the informal and formal sectors of the economy, and generate linkages and
connections with other sub-sectors creating numerous opportunities for suppliers, distributors, retailers and business services [2].
Earlier research has underscored the capacity of industrialization to propel sustainable and inclusive growth across Africa, fostering
* Corresponding author.
E-mail address: danjaisah@yahoo.com (I.I. Danja).
Contents lists available at ScienceDirect
Heliyon
journal homepage: www.cell.com/heliyon
https://doi.org/10.1016/j.heliyon.2024.e34411
Received 9 December 2023; Received in revised form 2 July 2024; Accepted 9 July 2024
Heliyon 10 (2024) e34411
2
economic metamorphosis, creating job prospects, aiding income distribution, fostering inter-sectoral connections, and bolstering the
growth of small and medium enterprises (SMEs).
Industrialization is pivotal for Africa’s economic progress, offering numerous benets including diversication of the economy, job
opportunities, transfer of technology, value addition, promotion of exports, development of infrastructure, integration of economies,
and improvement of human capital. Previous studies have highlighted the potential of industrialization to drive sustainable and in-
clusive growth in Africa, facilitate economic transformation, generate employment opportunities, support income distribution, pro-
motes linkages between different sectors, and bolstering the growth of small and medium enterprises (SMEs) [3–5]. African
industrialization witnessed growth in the post-independence era, largely inuenced by government-led protective measures. However,
by the mid-1980s, the region’s industrial sector faced a decline due to a combination of external factors, including increase in oil price,
decrease in commodity price, rising real interest rates, constrained public resources, and limited domestic market opportunities [2].
Currently, African leaders are recognizing the importance of industrialization as a key driver in advancing the continent’s economic
development. The African Union has placed signicant emphasis on the sector within its Agenda 2063, recognizing its central role in
their strategic vision [2].
Africa boasts a wealth of favorable elements, such as a surplus of low-cost labor and abundant natural resources, pointing towards
an imminent industrial revolution [6]. The region’s manufacturing sector is benetting from its favorable demographics and rich
resources, leading to a concentration in labor-intensive and locally sourced raw material industries [2]. As a result, recent FDI in Africa
has signicantly boosted manufacturing sub-sectors such as software, auto components, industrial machinery, and chemical pro-
duction. The COVID-19 pandemic has laid bare Africa’s susceptibility and inadequacies concerning economic growth and develop-
ment. As a response, African governments are actively exploring innovative and sustainable approaches to attract investment and
foster industrial development. These strategies involve selected infrastructure investments, enhanced regional integration, and the
establishment of more SEZs for selected subsectors.
SEZs play a signicant role in driving industrial growth and development by attracting foreign direct investment (FDI). China’s
experience with SEZs demonstrates their effectiveness in fostering industrialization, expanding export capabilities, and achieving
substantial economic growth. SEZs have been instrumental in transforming China into a major global manufacturing and exporting
powerhouse [7]. Furthermore, SEZs contribute to infrastructural development. A good example is South Korea’s establishment of the
Saemangeum Industrial Complex to stimulate industrial growth and regional development. The development of the complex has been
accompanied by infrastructure enhancements, including the construction of ports, roads, and utilities, to support industrial activities
[8].
SEZs play a crucial role in generating employment opportunities and facilitating skills development. Costa Rica’s Free Trade Zones
(FTZs) serve as an excellent example, by attracting high-tech industries like electronics manufacturing and medical device production,
the zones successfully created jobs and enhanced skill acquisition among the local workforce [9]. Also, to support industry demands,
the government and private sector have collaborated to establish training programs and vocational schools, nurturing a skilled labor
force [9]. SEZs also foster technology transfer and innovation. The Gwangyang Bay Free Economic Zone in South Korea stands out as a
notable example. The zone has effectively attracted technology-intensive industries and enabled collaboration between domestic and
foreign companies. This collaboration has led to the transfer of advanced technologies and knowledge, contributing to industrial
growth and innovation in sectors such as shipbuilding, steel production, and petrochemicals [8].
SEZs are considered a viable and realistic approach for overcoming economic constraints in developing countries [2]. However, it is
essential to tailor each SEZ to the local context, considering each country’s unique resources and specic development objectives.
While SEZs have been successful in attracting investments and creating jobs, particularly drawing inspiration from the Chinese model,
It is important to acknowledge that a uniform approach may not be appropriate for African nations. While there are numerous existing
policy briefs and expert documents on the assessment and establishment of SEZs, this study distinguishes itself by focusing on the
strategic placement of these zones in areas with a comparative advantage. We recognize that many SEZ initiatives have been
implemented across Africa based on general economic principles and development strategies. However, this study highlights the
importance of identifying and leveraging areas with specic comparative advantages, whether they be in terms of natural resources or
factors of production. By pinpointing these areas of comparative advantage, our research aims to provide policymakers with targeted
insights that can maximize the benets of SEZs, particularly in terms of enhancing manufacturing capabilities and facilitating inter-
national trade. Customized SEZ strategies can be developed to attract investments, promote technological advancements, and foster
sustainable economic growth, thereby beneting SMEs, entrepreneurs, and local communities. The objective of the study is to explore
the comparative advantages of African countries to determine the types of SEZs that can effectively accelerate industrialization. The
ndings of this research will enhance the current body of knowledge by underlining the importance of customizing SEZs to suit the
specic circumstances of African nations. This will inform policy dialogues and aid decision-making for policymakers, investors, and
development practitioners, thereby advancing industrial growth throughout Africa.
2. Literature review
Exporting new products and enhanced versions of existing commodities are presently considered key markers of productive
transformation in developing nations [10–12]. Recent research indicates that this transformation has notably bolstered economic
growth in developing countries [12–17]. However, the existing empirical data on the factors inuencing export diversication provide
only limited understanding of which policies are most efcacious in promoting productive transformation in developing nations [18].
The concept of comparative advantage entails a country’s capacity to produce and export a specic product or service not only
more efciently, as Ricardo initially suggested, but also with more distinct product features compared to other countries within a
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
3
particular trade area [19]. Studies conducted by later scholars like Heckscher-Ohlin (1919) and Samuelson (1948) established the
foundation for comprehending how countries can gain from trade by leveraging their distinct resources, capabilities, and technology.
Following the successful industrialization of East Asian countries in the late 1980s, SEZs emerged as potent instruments for driving
economic development and industrial growth in numerous nations worldwide [20–22].
Matching comparative advantages to SEZs is essential for leveraging the strengths of specic regions or countries and maximizing
the benets of industrialization while ensuring sustainability. For instance, China’s industrialization can be attributed to leveraging its
advantages in both human and physical development. With a history of investing in capital- and technology-intensive industries
alongside human capital, China possesses a distinct potential to pioneer sophisticated, technology-intensive products even at an earlier
stage of development [23]. While some investments may have resulted in resource misallocation, once human capital investment and
accumulated knowledge are effectively utilized for commercial production and services, they become a source of comparative
advantage, especially in the production and exportation of certain capital-intensive manufactured products with advanced technology.
Several studies have explored the relationship between RCA and economic growth [24]. explores the comparative advantage
between ASEAN countries and China using 2010 export and import data from the UN COMTRADE database. The study reveals that
China excels in manufacturing products while ASEAN nations like Indonesia and Malaysia have strengths in primary products and
some manufactured goods. This discrepancy has played a crucial role in China’s rapid industrialization and emergence as a global
economic powerhouse, contrasting with the varied economic paths taken by ASEAN countries. Similarly [25], compares the revealed
comparative advantage (RCA) of India and China across different levels of product classication. Their ndings indicate that India
holds a comparative advantage in a signicant number of product groups (9 out of 16 product groups of the Harmonized System (HS)
classication, 41 out of 97 HS chapters at the HS 2-digit level) and traded commodities (2377 out of 4163) at various classication
levels, while China also maintains its comparative advantage in several areas (6 out of 16 HS product groups, 45 out of 97 HS chapters
at the HS 2-digit level, and 2075 out of 4381 traded commodities). This strong performance in manufacturing and other specic
products has led to GDP and export growth over the years.
Additionally [26], study on Southern African Development Community (SADC) countries revealed comparative advantage unveils
South Africa as the leader, specializing in exporting 727 product lines. Zimbabwe, Tanzania, Mauritius, and Botswana also show
signicant specialization in certain export goods. This showcases how specialization in certain export goods, particularly evident in
South Africa, contributes to their economic development [27,28]. focuses on relationship between Revealed Comparative Advantages
and regional specialization of Colombia. They nd that Colombia predominantly exports primary commodities, such as petroleum oils,
coal, coffee, crude vegetable materials, and non-monetary gold. These ve products accounted for nearly 50 % of Colombian exports in
2001, a gure that rose to 75 % in 2011, 2012, and 2013, remaining above two-thirds in 2017. The sustained dominance of these
commodities in Colombian exports over the years reects their importance to the country’s economy and development.
The discourse surrounding industrial development strategies regarding comparative advantage can be divided into two schools of
thought: adhering to a country’s comparative advantage and defying comparative advantage. The former adheres to conventional
trade theory, which asserts that export diversication results from the interaction of capital accumulation and comparative advantage
in competitive goods [18]. Conversely, the latter perspective, defying comparative advantage, corresponds with the second-best theory
of economic policy. This perspective implies that factor price equalization and market incentives may not efciently drive productive
transformation due to challenges such as information and coordination failures [29], or deciencies in goods and factor markets [30].
As advised in Ref. [18], developing countries are urged not to defy their comparative advantage, but rather to enact policies
aligning their export activities with their specic resources. However, over the past three decades, many of these nations have pursued
strategies challenging their comparative advantage, attracting foreign direct investment (FDI) into specic manufacturing sectors
[31]. This has led to integration into global value chains (GVCs) overseen by advanced economies’ transnational corporations (TNCs)
[32,33]. Despite policies aimed at challenging comparative advantage, these countries paradoxically export capital-intensive goods,
raising doubts about the sustainability of their productive transformation [18].
Effective matching of comparative advantages to SEZs involves identifying and aligning the specic strengths of regions or
countries with the requirements and objectives of industrialization within these zones. Research by Ref. [34] emphasizes the
importance of considering factors such as natural resources, human capital, infrastructure, institutional capacity, and market access
when designing SEZs tailored to local comparative advantages. Similarly, another study by Ref. [35] underscores the signicance of
integrating environmental sustainability, social inclusiveness, and economic efciency into industrial development strategies,
including those implemented within SEZs. However, despite the potential benets, matching comparative advantages to SEZs for
sustainable industrialization entails several challenges and considerations. These include issues related to infrastructure development,
human capital formation, regulatory coherence, environmental sustainability, social inclusiveness, and governance. Research by
Ref. [36] emphasizes the need for comprehensive policy frameworks and institutional mechanisms to address these challenges
effectively.
2.1. Overview of existing literature on SEZs and their role in industrialization
Special Economic Zones (SEZs) are widely acknowledged globally as effective instruments for fostering economic development and
industrialization. Extensive research has been conducted on various aspects of SEZs worldwide, particularly focusing on their ability to
achieve key objectives such as attracting foreign direct investment (FDI), enhancing infrastructure, generating employment, stimu-
lating manufacturing industries, promoting local innovation, facilitating skill development, technology transfer, and driving indus-
trialization. A comprehensive review of existing literature underscores the signicant role of SEZs in both national and regional
industrialization and economic advancement [37]. However, the literature presents mixed ndings regarding the actual impact of
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
4
SEZs. While some studies suggest that SEZs can contribute to economic growth, job creation, and increased exports [38], others argue
that their effects depend on primary investment attractors such as a specic country’s economic activity, infrastructure quality, in-
dustry concentration, and zone location [39].
Several studies have investigated the inuence of SEZ policies on FDI inows. For instance, research conducted in Indian states by
Ref. [40] found that SEZ policies resulted in increased FDI inows. Similarly [41], emphasized the crucial role of SEZs in China’s
evolution into a major FDI destination, particularly during the 1980s. Likewise [42], discovered that the establishment of SEZs in
various municipalities in China positively impacted FDI, leading to an average per capita increase of 21.7 % and a 6.9 percentage point
growth rate in FDI. Although employment generation and skills development are anticipated benets of SEZ creation, multiple studies
indicate minimal impact of SEZs on job creation [36,43–46]. Conversely, other studies have identied signicant positive effects of
SEZs on employment generation [47–49].
A study conducted by Ref. [36] investigated the impacts of SEZs on skills development and labor productivity in Malaysia and
Honduras, concluding that SEZs positively affect productivity, especially through the establishment of Skills Development Centers.
Furthermore [50], revealed that science and technological industrial parks play a signicant role in fostering skills convergence and
enhancement in their surrounding areas. Research has also examined the effects of spillovers and technology and knowledge transfer
from foreign SEZ rms to local rms and suppliers. For instance Ref. [51], analyzed the Thilawa SEZ in Myanmar and found that it
facilitated knowledge transfers or spillovers between foreign and local companies. Similarly [52], assessed SEZs in Panama and
observed productivity enhancements resulting from spillover effects, particularly through the inux of high-skill immigrants.
Research conducted by Ref. [53] revealed that the clustering of foreign rms in Ireland had a positive impact on the productivity
and employment of local manufacturing rms. Similarly [54,55], discovered that SEZs generated positive horizontal spillover effects
through industrial clustering. However, certain studies suggest that some SEZs failed to achieve spillover effects. For instance
Ref. [56], found insufcient technology transfer in Chinese SEZs, while [57] noted limited spillover effects in Indian SEZs. Likewise
[47], observed that export processing zones in Asia were not highly effective in transferring knowledge and skills to domestic rms.
Studies focusing on the impacts and performances of SEZs in Africa indicate that the continent has yet to fully benet from SEZs and
effectively diversify and industrialize its economies [58]. identied the main problems in creating SEZs in Africa and concluded that
urgent policy adjustments and fundamental reforms are needed to stimulate industrialization and encourage active participation in the
global market [59]. examined the literature to understand the factors contributing to the failure of the SEZ model in Africa and
proposed the charter cities model as a potential alternative for African countries. This suggests that Africa should explore alternative
approaches to achieve economic development and attract investments beyond traditional SEZ frameworks.
A study conducted by Ref. [45] regarding the development of SEZs in Africa revealed that while African SEZs are increasing in
number and evolving, their capacity to attract industrial activity and generate employment remains limited. They emphasized that
governance policies for African SEZs heavily rely on scal incentives and performance requirements. Additionally [60], proposed
initiatives to enhance co-development between Africa and Europe, such as establishing an Institute of Advanced Industrial Devel-
opment Studies for Africa and forming consortia of African and European companies to drive Africa’s productive transformation
through SEZ programs [61]. studied SEZs in Southern Africa, specically South Africa and Zambia. They found that while South
African SEZs have growth and employment potential, they face challenges like inadequate infrastructure nancing and weak local
supplier capabilities. In Zambia, SEZs encounter similar issues but also lack sufcient business services, deal with burdensome reg-
ulations, and suffer from coordination failures and ineffective design, leading to lower success rates [40].
2.2. The revealed comparative advantages concept and its relevance to SEZ development
Special economic zones have emerged as a popular development strategy for African countries trying to spur industrialization and
attract foreign direct investment. To maximize the potential benets of SEZs for sustainable industrialization in Africa, it is essential to
identify and match comparative advantages with specic zones. For instance, African countries with a comparative advantage in
manufacturing and export-oriented industries could create zones that specialize in those sectors [62]. However, evidence from pre-
vious studies demonstrates that the success of comparative advantage requires an economic structure that encourages nations to take
maximal advantage of their manufacturing and trade possibilities [63].
Revealed Comparative Advantage (RCA) is an economic concept employed to assess the competitiveness and comparative
advantage of countries within particular industries or sectors. It aligns with Ricardo’s notion that nations should focus on producing
goods and services where they hold a comparative advantage [64]. The RCA index measures a country’s export concentration in a
specic product compared to global exports. It helps identify export strengths, weaknesses, and diversication potential, aiding in
assessing global market competitiveness. Policymakers and businesses rely on RCA analysis to inform trade policies, investments, and
industrial development decisions. Utilizing RCA can ensure African economies leverage their comparative advantages effectively in
SEZ development aligned with strategic objectives [65]. Given Africa’s unique socio-economic and demographic circumstances, the
creation of the African Continental Free Trade Area (ACFTA) presents an opportunity to unlock economic prospects and capitalize on
the agricultural and manufacturing capacities of the region. This endeavor has the potential to spur economic growth and advance
industrial development across Africa [66].
Africa possesses several advantageous factors that position it well for industrialization and global competition. These include rapid
urbanization, a growing labor force, an expanding domestic market, and advancements in digital and technological developments [3,
67,68]. Additionally, Africa is rich in natural resources, giving it a strong position globally. It holds the top rank worldwide for reserves
of various ores such as manganese, chromite, bauxite, gold, cobalt, and diamonds, among others. Additionally, it ranks second in
reserves of copper, uranium, and graphite, and third in reserves of oil, gas, and iron ore. The continent also possesses signicant
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
5
reserves of titanium, nickel, tantalum, and other minerals. Africa’s agricultural potential is vast, with around a quarter of the world’s
fertile soil located within its borders. Moreover, Africa’s forested area is the second-largest globally, trailing only behind Latin America
and Russia [69].
To unlock Africa’s manufacturing and industrial potential, concerted efforts are required from both the public and private sectors.
There is a need to enhance Africa’s economic complexity, diversity, competitiveness, and productivity. This entails implementing SEZs
policies and initiatives that promote innovation, technological advancements, and skills development. The public sector plays a crucial
role in creating an enabling environment through favorable regulations, investment in infrastructure, and the provision of quality
education and healthcare. The private sector, on the other hand, needs to invest in research and development, adopt modern pro-
duction techniques, and collaborate with local suppliers and stakeholders to foster value chains and increase competitiveness. By
working together, the public and private sectors can drive the necessary changes and propel Africa towards achieving its
manufacturing and industrial potential.
3. Methodology
This study is based on the idea that African countries, despite the increasing number of SEZs being established, are not fully
maximizing the potential benets of SEZ development. By aligning the specic comparative advantages of each country with their
respective SEZ programs, it is believed that substantial economic benets can be unlocked, contributing to sustainable industriali-
zation across Africa. To accomplish this objective, a mixed-method approach comprising sample analysis and case studies is employed
to examine African SEZs. The study brings forth a signicant level of novelty by utilizing sources of information that have not been
previously explored. The data for this study was obtained from the United Nations Conference on Trade and Development (UNCTAD)
statistical database, and the relevant variables for each country have been calculated by the RCA matrix from 2011 to 2021 [70].
The research employs the Revealed Comparative Advantage (RCA) derived from Ricardian trade theory, which posits that the
variations in productivity inuence trade patterns among nations. The RCA measure is utilized to assess a country’s competitive export
capabilities using trade data. It is essential to recognize that while the RCA metric provides a general indication of competitiveness, it
overlooks national factors affecting competitiveness, such as tariffs, non-tariff measures, and subsidies. The chosen countries for
analysis are Ghana, Ethiopia, and South Africa, selected for their signicant accomplishments in utilizing SEZ programs for economic
growth and their diverse industrial environments supportive of industrialization. Selection criteria were based on factors like the
number of rms within each zone, their employment impact, and SEZ policies, informed by existing literature on SEZ performance in
Africa (e.g. Refs. [36,45,and71]]). Here, the RCA is employed to compare and identify industries or sectors where the selected
countries possess comparative advantages and to highlight how these industries or sectors can be promoted within SEZs. This matching
process can help align the comparative advantage of African countries with the opportunities provided by SEZs.
The Revealed comparative advantage data is sourced from UNCTAD statistic database (The RCA Matrix) and is dened as:
Country A is considered to have a revealed comparative advantage in a specic product (i) if its proportion of exports for product i,
compared to its total exports of all products, surpasses the corresponding ratio for the entire world.
That is,
RCAAi =
XAi
Σj∈PXAj
Xwi
Σj∈PXwj
≥1 (1)
Where.
•P is the set of all products (with i ∈P),
•X
Ai
is the country A’s exports of product i,
•X
wi
is the worlds’ exports of product i,
•Σ
j ∈P
X
Aj
is the country A’s total exports (of all products j in P), and
•Σ
j ∈P
X
wj
is the world’s total exports (of all products j in P).
When a country exhibits a revealed comparative advantage for a specic product (RCA >1), it indicates that the country is a
competitive producer and exporter of that product. If a country’s RCA for product i (denoted as RCA
i
in equation (1)) exceeds 1, it
signies the country’s export prowess in that product. The greater the value of a country’s RCA for product i, the stronger its export
capability in that product [70].
The data derived from the RCA matrix [70] was analyzed and presented utilizing version 12 of EViews, which is an econometric
software and statistical tool.
The sectors selected for application of the RCA matrix for Ghana are food and live animals (specically cocoa), crude materials
(ores and concentrates of base metals), commodities and transactions (Gold), and mineral fuel (petroleum and bitumen oils). These
sectors were chosen based on the consistent comparative advantage exhibited by Ghana over the study period (2011–2021). Cocoa
production is a key driver of Ghana’s economy, and the country has maintained a strong comparative advantage in this sector.
Additionally, Ghana has signicant reserves of gold and petroleum, making these sectors important contributors to its economy. In the
case of Ethiopia, the selected sectors are food and live animals (coffee), manufactured goods (leather), miscellaneous manufacturing
(textile), and machinery and transport (engine motors). Ethiopia has demonstrated a consistent comparative advantage in coffee
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
6
production, making it a crucial sector for analysis. Leather, textile, and machinery industries also play signicant roles in Ethiopia’s
economy, with the country exhibiting higher comparative advantage in these sectors over the study period.
For South Africa, the chosen sectors are manufactured goods (including silver and platinum, iron, and spiegeleisen), crude ma-
terials (ores and concentrates of base metals), and food and live animals (cereals and our). South Africa’s mining sector, especially in
platinum, gold, and iron ore, plays a signicant role in its economy and continues to demonstrate a robust comparative advantage.
Additionally, the country’s agricultural sector, particularly in cereals and our production, has shown favorable comparative
advantage over the study period. Overall, the selection of these sectors is based on the consistent comparative advantage exhibited by
the respective countries over the study period. These sectors represent key areas of strength for each country’s economy and are
therefore suitable for analysis using the RCA matrix.
It is important to note that the RCA matrix forms the backbone of the methodology, as within the RCA framework, factors such as
natural resources, labor skills, infrastructure, and market potential are implicitly considered. The RCA metric evaluates a country’s
competitive export strengths using trade data, which reects underlying factors contributing to comparative advantage. For instance,
abundant natural resources may lead to a country’s specialization in resource-intensive industries, while a skilled labor force may drive
competitiveness in knowledge-based sectors. Similarly, robust infrastructure and access to markets can enhance a country’s export
competitiveness. Therefore, while the RCA analysis may not explicitly assess these factors, they are reected in the trade patterns
analyzed, providing insights into a country’s overall competitive position. Also, the integration of RCA framework with qualitative
case studies enhances the depth and breadth of the analysis, providing a holistic understanding of the export strength of selected
nations. This complementary approach allows for a more robust assessment of SEZ development potential and facilitates the alignment
of comparative advantages with SEZ opportunities.
4. Analysis and ndings
In line with the global trend, various countries in Africa have established SEZs as a means to drive industrialization and economic
growth. These SEZs offer advantages such as streamlined administrative processes, favorable tax incentives, and modern infrastruc-
ture, which aim to attract investment and overcome obstacles to economic development [72,73]. However, the overall performance of
SEZs in Africa has been largely disappointing, with few exceptions. According to a report by the African Development Bank, African
rms are approximately 20 % less competitive compared to their counterparts in other regions [74]. This section examines the ex-
periences of three African countries— Ethiopia, South Africa, and Ghana—that have made notable efforts in establishing SEZs and
promoting industrialization. These countries offer diverse contexts and industries that can be analyzed using frameworks like Revealed
Comparative Advantage (RCA) and SEZs. Through studying these cases, valuable insights can be gained into the dynamics of industrial
development, comparative advantages, and the role of SEZs in driving economic growth.
4.1. Ghana
Special Economic Zones (SEZs) have emerged as a crucial strategy for many developing countries, including Ghana, to promote
industrialization, generate employment, and drive export-led growth [75]. Ghana acknowledges the considerable potential of Special
Economic Zones (SEZs) in attracting private sector investment and promoting export-driven growth. Indeed, the World Bank has
praised Ghana’s SEZ program as one of the most well-designed, adaptable, and inventive in Africa [76].
To capitalize on its strengths and promote economic growth, Ghana has adopted a two-tier system of SEZs, comprising enclave
zones and single enterprise zones. The Ghana Free Zone Authority (GFA) has strategically established enclaves in urban areas with the
objective of maximizing spillover effects and generating employment opportunities. A prominent example is the agship enclave
located in Tema, a port city, which currently hosts around forty companies operating within the zone. The introduction of SEZs in
Ghana has facilitated signicant market-driven transformations across various geographical regions, opening avenues for industries to
engage in trade and export their products [71]. Ghana acknowledges that the establishment of Special Economic Zones (SEZs) is crucial
for encouraging private sector investments, promoting export-driven expansion, and generating employment opportunities [77].
Ghana boasts several comparative advantages that contribute to its economic potential and trade opportunities. These include a
stable political environment, abundant and diverse natural resources, agricultural production, cocoa processing, a favorable climate
Table 1
Selected sectors for Ghana and their annual RCA value from 2011 to 2021.
S/
N
GHANA Revealed Comparative Advantage Value Per Year From 2011 to 2021
SELECTED SECTOTRS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1 Food (Cocoa) and live Animal 169.2 157.1 144.7 133.1 123.9 118.1 144.6 160.5 163.9 145.2 202.6
2 Crude materials (ores and concentrates of base
metals)
13.5 10 12.1 8.5 7.1 10.1 11.6 14.8 23.8 16.4 14
3 Commodities and Transaction (Gold, non-
monetary excluding ores)
12.6 15.4 11.7 16 18 19.3 20.2 21 20.2 14.9 18.2
4 Mineral fuel (Petroleum, oil, bitumen, and
minerals)
2.4 2.5 3.1 3.7 3.5 2.5 4.6 5 5 6.7 6
Source: Author, extracted from UNCTAD data exploration
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
7
and fertile soil, a skilled workforce, and a strategic location that positions Ghana as a regional hub with access to global markets. These
advantages enable Ghana to leverage its strengths and create favorable conditions for economic growth and trade expansion.
4.1.1. The revealed comparative advantage of the selected sectors in Ghana
Table 1 highlights the sectors and sub-sectors with highest RCA value in Ghana between 2011 and 2021. The identied sectors
include food and live animal (cocoa), crude materials (ores and concentrates of base metals), commodities and transaction (Gold), and
mineral fuel (petroleum, bitumen oils).
The RCA values in Figs. 1 and 2 indicate that Ghana has shown a decreasing trend in RCA value for Cocoa and Cocoa-related
products from 2011 to 2021. However, despite this decreasing trend, this sector maintained a higher comparative advantage
compared to other sectors throughout the study period. Ghana, undergoing rapid urbanization at a rate of around 51 %, has become
one of Africa’s fastest-growing economies. With an average annual growth rate of 5.7 %, the nation has seen a considerable decline in
poverty, particularly in the capital city of Accra, alongside a noticeable rise in industrial employment opportunities [78]. In this
context, SEZs specializing in agro-processing, agricultural production, and the promotion of agricultural value addition have great
potential to leverage Ghana’s diverse agricultural sector and its comparative advantage in cocoa. SEZs located in key areas such as
Dawa Industrial City in the greater Accra region, as well as those specically dedicated to cocoa processing like the Tema Export
Processing Zone and the Sekondi-Takoradi Industrial and Free Zone has the potential to signicantly contribute to economic growth
and the generation of employment opportunities. By capitalizing on Ghana’s agricultural strengths and strategic positioning, these
SEZs can contribute to the country’s overall development and harness its comparative advantage in cocoa.
The establishment of SEZs in Ghana has contributed to a substantial increase in the country’s GDP and urbanization. Zones in
Ghana act as growth nodes that promote collaboration between local and foreign companies [45]. Similarly, the government’s
10-point transformation agenda, with Free Zones as a key focus, has strategically targeted urban areas and regions where Ghana
possesses a comparative advantage, such as port cities and manufacturing hubs, to establish SEZs and maximize their potential
benets. While Ghana has made commendable efforts in establishing SEZs as a means of promoting economic growth, the country still
faces challenges in areas such as infrastructure, governance, and nancing, which have hindered the progress of SEZ initiatives [79].
Apart from the Cocoa and Cocoa-related sectors, Ghana possesses comparative advantages in other sectors such as mineral fuel
(petroleum, oil, bitumen and mineral), commodity transaction (Gold), and crude materials (ores/concentrates of base metal). Fig. 3
shows the (RCA) values for each sector.
As indicated in Fig. 3, Ghana boasts abundant natural resources, including gold, oil, and gas, positioning it as a signicant player in
these industries within Africa. As one of the continent’s largest gold producers and with a growing oil and gas sector, the country
possesses a comparative advantage in mining and energy-related activities. By establishing SEZs that focus on mineral processing and
manufacturing, Ghana can leverage its natural resource wealth to add value to these commodities and create employment
opportunities.
SEZs specializing in mineral processing can provide an opportunity for Ghana to enhance its competitive edge in these sectors.
Concentrating expertise and resources in these zones can lead to increased specialization, fostering a critical mass of skilled pro-
fessionals and enabling the production of higher-value outputs. For example, the Sekondi-Takoradi SEZ, strategically located near the
country’s oil and gas reserves in the Western Region, has the potential to attract investments and facilitate activities such as mining
operations, oil exploration, and oil rening.
Fig. 1. Selected Variable for Ghana: FLA cocoa (Food and live animal, cocoa), Ct gold (Commodity transaction Gold), Mfpobm (Mineral fuel pe-
troleum, oil, bitumen and mineral), Cmocbm (Crude materials, ores/concentrates of base metal) over time (2011–2021). (For interpretation of the
references to colour in this gure legend, the reader is referred to the Web version of this article.)
(Source, Author’s production extracted from UNCTAD data exploration).
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
8
4.2. Ethiopia
Ethiopia serves as an example that highlights the importance of interconnection of various factors, such as investment promotion,
trade, customs regulations, and labor laws, in effectively developing and implementing Special Economic Zone (SEZ) policies. The
Ethiopian SEZ models illustrate that the connection between these policy domains, typically managed by various government in-
stitutions and agencies, requires an efcient mechanism for institutional collaboration and coordination. This ensures that SEZ policies
are integrated into comprehensive strategies and policy coherence [36].
Ethiopia’s success in SEZ development can be attributed to various factors. Firstly, advantageous external factors, like the extension
of the African Growth and Opportunity Act (AGOA) and affordable labor expenses, have been pivotal in attracting investments.
Secondly, the country has implemented a well-targeted SEZ policy and actively promoted investment through dedicated efforts [45].
These factors have contributed to the growth and development of SEZs in Ethiopia, enabling the country to leverage its comparative
advantages and create opportunities for economic expansion and trade. Similarly, the establishment of key institutions like the
Ethiopian Investment Board (EIB) and the Ethiopian Investment Commission (EIC) has provided high levels of government support.
These institutions are responsible for formulating policies and strategies, overseeing investment promotion, formulation of industrial
park policies, managing day-to-day operations, attracting investors to targeted sectors, and regulating industrial park developers,
operators, and rms [45]. Their concerted efforts have contributed to Ethiopia’s progress in SEZ development.
Ethiopia possesses several advantages that have the potential to contribute to its economic growth and trade opportunities. These
include its strategic geographical location, abundant agricultural resources, a thriving coffee production industry, a growing textile
and garment sector, a skilled labor force, and favorable regional integration and market access.
Fig. 2. Analyzed result of revealed comparative advantage (RCA) values for FLA cocoa (Food and Live Animals) in Ghana (2011–2021). (Source,
Author’s production extracted from UNCTAD data exploration).
Fig. 3. Analyzed results of RCA values for Mfpobm (Mineral fuel, petroleum, oil, bitumen and mineral), Ctgold (Commodity transaction Gold),
Cmocbm (Crude materials, ores/concentrates of base metal) over time (2011–2021). (Source, Author’s production extracted from UNCTAD data
exploration). (For interpretation of the references to colour in this gure legend, the reader is referred to the Web version of this article.)
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
9
4.2.1. Revealed comparative advantage for selected sectors in Ethiopia
Table 2 shows the sectors and sub-sectors with highest RCA value in Ethiopia between 2011 and 2021. The identied sectors
include food and live animal (coffee), manufactured goods (leather), miscellaneous manufacturing (textile), and machinery and
transport (engine motors).
According to Figs. 4 and 5, Ethiopia has consistently maintained a signicant comparative advantage in the Coffee sector compared
to other sectors between 2011 and 2021. This highlights the country’s strength and expertise in coffee production. To leverage this
opportunity, current industrial parks in Ethiopia, like the Hawassa Industrial Park and the Bole Lemi Industrial Park near Addis Ababa,
can indirectly support coffee-related industries by offering essential infrastructure and support services.
Additionally, Ethiopia shows potential in other sectors such as Machinery and Transportation (engine motors), Manufactured goods
(Leather), and miscellaneous manufacturing (textile and garments). Fig. 6 highlights the RCA values for the sectors.
As indicated by Fig. 6, Ethiopia benets from favorable agro-ecological conditions and diverse landscapes, which make it well-
suited for agricultural production and create signicant potential for export opportunities. The Eastern Industrial Zone (EIZ),
located near Ethiopia’s capital city of Addis Ababa, holds the potential to act as a strategic center for harnessing the country’s agri-
cultural sector. Its location offers several advantages, including proximity to major transportation routes such as the Addis Ababa-
Djibouti railway and the Bole International Airport, providing access to regional markets. The EIZ’s strategic positioning and infra-
structure connectivity make it an ideal location for agricultural industries to establish their operations. With access to reliable
transportation networks, businesses within the EIZ can efciently transport agricultural products to regional markets and take
advantage of export opportunities. This not only improves Ethiopia’s agricultural value chain but also boosts the nation’s economic
growth and trade expansion. The establishment of the EIZ and its emphasis on harnessing Ethiopia’s agricultural potential can advance
the country’s overarching industrialization objectives.
Additionally, Ethiopia has advanced considerably in building its textile and garment sector, leveraging its strengths such as cost-
effective labor, ample cotton resources, and preferential trade deals with major markets like the United States and the European Union.
These elements bolster Ethiopia’s edge in the textile and apparel industry. The Hawassa Industrial Park, situated in the Southern
Nations, Nationalities, and Peoples’ Region, serves as a notable SEZ in Ethiopia, showcasing the nation’s strategic vision. This in-
dustrial park is designed to align with Ethiopia’s comparative advantage in agriculture by focusing on textile and garment
manufacturing, taking advantage of the availability of cotton resources and the country’s strong agricultural base. The Hawassa In-
dustrial Park acts as a center for textile and garment manufacturing, offering infrastructure, utilities, and services to entice both
domestic and international investors keen on tapping into Ethiopia’s textile and apparel industry.
Hence, by leveraging its comparative advantages in the textile and garment sector, Ethiopia can advance its manufacturing ca-
pacity, generate job prospects, and boost its export potential worldwide [80]. The expansion of the textile and garment industry within
SEZs such as the Hawassa Industrial Park fosters economic diversication, industrial growth, and trade amplication in Ethiopia.
4.3. South Africa
The Coega Industrial Development Zone (Coega IDZ) in South Africa, founded near Port Elizabeth in 2001, stands as a prominent
illustration of how SEZs can facilitate connections with local small, micro, and medium-sized enterprises (SMMEs). Coega IDZ has
implemented specic initiatives to create an environment conducive to the participation and benet of local rms in its industrial
activities. These efforts encompass the formation of an SMME Development Unit tasked with overseeing the SMME Development
Program. This program aims to promote the establishment of local businesses by compiling a supplier database, offering customized
training and development initiatives, and providing technical mentorship to assist local companies in competing for more lucrative
tenders [81,82]. This arrangement allows for close collaboration and interaction between companies operating within the SEZ and the
surrounding SMMEs, leading to the development of strong sourcing linkages.
South Africa enjoys various comparative advantages that greatly contribute to its economic progress and competitiveness. The
country possesses abundant natural resources, a stable infrastructure, a strong manufacturing and industrial base, and a reputation as a
nancial hub. Additionally, South Africa has access to a skilled workforce, and boasts strong institutional frameworks.
4.3.1. Revealed comparative advantage for selected sectors in South Africa
Table 3 highlights the sectors and sub-sectors with highest RCA value in South Africa between 2011 and 2021. The identied
sectors include manufactured goods (silver and platinum, iron, and spiegeleisen), crude materials (ores and concentrates of base
metals), food and live animals (cereals and our).
Table 2
Selected sectors for Ethiopia and their RCA value between 2011 and 2021.
S/N Ethiopia REVEALED COMPARATIVE ADVANTAGE VALUE PER YEAR FROM 2011–2021
SELECTED SECTOTRS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1 Food and live Animal (Coffee) 169.2 157.1 144.7 133.1 123.9 118.1 144.6 160.5 163.9 145.2 202.6
2 Manufactured goods (Leather) 45.4 31.7 31.2 25.5 26.5 24.7 22.7 27.7 27.1 13.2 20.5
3 Miscellaneous manufacturing (Textile) 1.3 1.1 1.5 1.5 1.5 2.1 3 3.5 5.9 5.4 4.5
4 Machinery/Transport (Engine motors) 1.2 1.9 2 0 3.6 4.3 3.7 2.3 3.5 11 3.5
Source: Author, extracted from UNCTAD data exploration
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
10
Figs. 7 and 8 shows that South Africa demonstrated a consistent and substantial comparative advantage in the mineral ores and
concentrates sector compared to other sectors from 2011 to 2021. This comparative advantage highlights the country’s strength in
mineral exploration and processing. SEZs that specically target mineral exploration and processing, such as the Richards Bay In-
dustrial Development Zone (RBIDZ), can effectively leverage this advantage to drive economic development and foster inclusive
growth. The RBIDZ, located in the Richards Bay area of KwaZulu-Natal, is strategically positioned to harness South Africa’s mineral
resources and maximize their value through processing and beneciation activities [83]. Given its comparative advantage in the
mineral ores and concentrates sector, the RBIDZ can attract investments and facilitate activities such as mining operations, mineral
processing, and export-oriented production.
By establishing SEZs that focus on mineral exploration and processing, South Africa can create a conducive environment for
companies to capitalize on the country’s abundant mineral resources and leverage advanced technologies and expertise in the sector.
This can lead to increased value addition, job creation, and enhanced export opportunities, ultimately contributing to economic
development and promoting inclusive growth. Therefore, it is important for South Africa to continue developing and supporting SEZs
like the RBIDZ, providing necessary infrastructure, incentives, and regulatory frameworks to attract investments and foster a vibrant
mineral processing industry. This strategy can empower the nation to unleash the complete potential of its mineral wealth, promote
economic diversication, and enhance its standing in the global marketplace.
Fig. 4. Selected Variable for Ethiopia: FLA coffee (Food and live animal coffee and coffee substitute), MGleather (Manufactured goods, Leather),
Mmtextile (miscellaneous manufacturing, textile and garments), and MTengine motors (Machinery and Transportation engine motors), over time
(2011–2021). (Source, Author’s production extracted from UNCTAD data exploration).
Fig. 5. Analyzed result of revealed comparative advantage (RCA) values for FLA coffee (Food and Live animal coffee) in Ethiopia (2011–2021).
(Source, Author’s production extracted from UNCTAD data exploration).
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
11
Fig. 6. Analyzed results of RCA values for MGleather (Manufactured goods Leather), Mmtextile (miscellaneous manufacturing textile and gar-
ments), and MTEngine motors (Machinery and Transportation engine motors) between 2011 and 2021. (Source, Author’s production extracted from
UNCTAD data exploration).
Table 3
Selected sectors for South Africa and their RCA value from 2011 to 2021.
S/
N
SOUTH AFRICA REVEALED COMPARATIVE ADVANTAGE VALUE PER YEAR FROM 2011–2021
SELECTED SECTOTRS 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
1 Manufactured Goods (Silver Platinum etc.) 25.7 22.3 28.8 26.6 33.5 31.5 27.8 31.8 30 24.4 31.5
2 Crude materials (ores and concentrates of base
metals)
21.8 23.9 29.4 28 29.8 33.3 37.3 38.5 41.3 39.7 50.2
3 Food and live Animal (cereal/our) 12 15.3 17.9 16.4 15.8 18.4 14.3 12.6 16.5 19.5 2.6
4 Manufactured Goods (Iron, Spiegeleisen, powder) 18.9 18 22.4 22.8 26.7 28.8 22.2 19.9 19.1 16.6 23.7
Source: Author, extracted from UNCTAD data exploration
Fig. 7. Selected Variable for South Africa: MGsp (Manufactured Goods, silver, platinum etc.), FLAcf (Food and live animals (cereal and our),
CMocbm (Crude materials ores and concentrates), and Mgisp (Manufactured goods, iron spiegeleisen, powder) between 2011 and 2021. (Source,
Author’s production extracted from UNCTAD data exploration).
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
12
Furthermore, South Africa shows high comparative advantage in other sectors such as Manufactured Goods (Silver, platinum etc.),
Food and live animal (Cereal and our), and other Manufactured goods (iron, spiegeleisen, granulated powder), as highlighted in Fig. 9
below.
Fig. 9 highlights the reveal comparative advantage of other sectors in South Africa. By establishing SEZs that focused on
manufacturing, agro-processing and provision of a platform for collaboration and knowledge exchange, such as those implemented in
SEZs like Coega IDZ for the above-mentioned sectors across the entire country, several opportunities will be created for domestic rms
to expand their market reach, access nance, and receive training and mentoring. These initiatives will enable SMMEs to integrate into
larger value chains, enhance their competitiveness, and seize growth opportunities [45]. The success of these initiatives in Coega IDZ
highlights the crucial role of SEZs in promoting economic development and fostering linkages between different actors in the economy
by facilitating collaboration, knowledge sharing, value chain integration, and the growth and development of both large enterprises
and smaller domestic rms.
Table 4 presents a summary of the identied sectors with highest RCA values for Ethiopia, Ghana and South Africa and other sectors
for potential diversication and recommended types of SEZs that aligns with each of the identied sector.
5. Discussion
The revealed comparative advantage (RCA) provides valuable insights into a country’s regional specialization by identifying the
Fig. 8. Analyzed result of revealed comparative advantage (RCA) values for CMocbm (Crude materials, ores and concentrates) in South Africa from
2011 to 2021. (Source, Author’s production extracted from UNCTAD data exploration).
Fig. 9. Analyzed result of revealed comparative advantage (RCA) values for MGsp (Manufactured goods, silver and platinum), FLAcf (Foods and live
animal cereal and our), and Mgisp (Manufactured goods, iron, spiegeleisen, granulated powder) in South Africa from 2011 to 2021. (Source,
Author’s production extracted from UNCTAD data exploration).
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
13
products that represent strengths and weaknesses for international trade within that country in a particular eld [84]. According to the
RCA matrix, a value exceeding 1 for a specic product implies that a country possesses a comparative advantage in that product,
signifying that it exports a greater proportion of that product compared to the global average. Conversely, a value below 1 indicates a
comparative disadvantage. However, the country is neither at an advantage nor a disadvantage if the RCA value is 1. Hence, this study
revealed that each of the analyzed countries consistently maintained a comparative advantage in specic sectors compared to the
others. For example, Ghana displayed the greatest comparative advantage in cocoa and cocoa-related products from 2011 to 2021,
peaking at an RCA value of 213.1 in 2012. Similarly, Ethiopia exhibited a signicant comparative advantage in coffee throughout the
same period, reaching its highest RCA value of 202.6 in 2021. South Africa demonstrated a substantial comparative advantage in the
mineral ores and concentrates sector, achieving its peak RCA value of 50.2 in 2021.
Establishing SEZs tailored to the comparative advantages of African nations offers a promising path toward sustainable industri-
alization. Research, such as [2], emphasizes the importance of targeting labor-intensive industries and locally sourceable raw materials
as key investment opportunities in Africa. This suggests that SEZs can strategically utilize these resources by situating industrial zones
near areas abundant in specic resources. For example, countries like South Africa possess signicant reserves of minerals such as gold,
platinum, and diamonds (as indicated by this study). SEZs specializing in mineral processing and beneciation can leverage these
resources to stimulate industrial growth and value addition. Similarly, Africa boasts extensive agricultural potential, with fertile lands
conducive to cultivating various crops. SEZs focusing on agro-processing can capitalize on this advantage, promoting value addition
and export-oriented production. This aligns with [85]’s endorsement of leveraging the agro-industry as the next natural stage to aid the
continent in achieving structural transformation and advancing along the global value chain.
Echoing the recommendation from Ref. [86] to customize SEZs according to local skills and innovation capabilities, Africa boasts a
diverse pool of human capital with a range of skills and expertise. Tailoring SEZs to match local skills ensures the optimal utilization of
available talent. For instance, countries with a robust agricultural workforce can establish SEZs focused on agro-processing, tapping
into the agricultural value chain. Similarly, nations with skilled labor forces in sectors like manufacturing or technology can develop
SEZs specializing in high-value-added industries, fostering innovation and competitiveness. Furthermore, the proposition underscores
the importance of nurturing innovation within SEZs. Africa’s burgeoning ecosystem of startups and entrepreneurship offers oppor-
tunities for SEZs to function as innovation hubs. By providing conducive environments for research and development, SEZs can
cultivate local innovation ecosystems and bolster the growth of knowledge-based industries. Moreover, adapting SEZs to align with
Africa’s innovation capacities entails investment in infrastructure and technology. Access to dependable energy, transportation, and
Table 4
Identied comparative advantages of selected countries and recommended zone types.
S/
N
COUNTRIES SECTORS MEAN ITEM
SCORE FOR
SECTORS
SECTORS WITH HIGHEST
COMPARATIVE
ADVANTAGE
SECTORS WITH
POTENTIAL
RECOMMENDED SEZ
TYPES
1 Ethiopia 1. Food and live animals
(Coffee and Coffee
substitutes)
151.172 Food and live animals
(Coffee and Coffee
substitutes)
1. Manufactured Goods
(Leather).
2. Miscellaneous
Manufacturing (Textile
and Garments).
3. Machinery and
Transport (Engine
motors).
1. Agro-processing
zone.
2. Manufacturing
processing zones, 2. Manufactured Goods
(Leather)
26.927
3. Miscellaneous
Manufacturing (Textile
and Garments)
2.845
4. Machinery and
Transport (Engine
motors).
3.363
2 Ghana 1. Food and live animals
(Cocoa)
165.909 Food and live animals
(Cocoa)
1. Commodity transaction
(Gold).
2. Mineral fuel (petroleum,
oil, bitumen and
mineral).
3. Crude materials (ores/
concentrates of base
metal).
1. Agro-processing
zone.
2. Mineral exploration
and processing zone
2. Commodity transaction
(Gold)
17.045
3. Mineral fuel (petroleum,
oil, bitumen and
mineral)
4.09
4. Crude materials (ores/
concentrates of base
metal)
12.9
3 South Africa 1. Crude materials (Ores
and concentrates of base
metals)
33.927 Crude materials (Ores and
concentrates of base
metals)
1. Food and live animals
(cereal and our).
2. Manufactured goods
(iron spiegeleisen,
powder).
3. Manufactured Goods
(silver, platinum etc.)
1. Mineral exploration
processing zone.
2. Agro-processing
Zone 2. Food and live animals
(cereal and our)
14.663
3. Manufactured goods
(iron spiegeleisen,
powder)
28.536
4. Manufactured Goods
(silver, platinum etc.)
21.736
Source: Author, extracted from UNCTAD data exploration
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
14
telecommunications infrastructure is crucial for facilitating business operations and attracting investment.
A study by Ref. [66] emphasizes Africa’s potential for growth and integration into global value chains through industrialization and
ICT. The ndings underscore the importance of integrating digital technologies and Industry 4.0 principles to areas of comparative
advantage such as agriculture to enhance productivity, efciency, and competitiveness, thereby driving economic development and
positioning Africa as a key player in the global economy. Similarly, Africa’s economic development is contingent upon robust con-
nectivity infrastructure, including transportation networks, telecommunications systems, and digital platforms. SEZs situated in areas
with access to reliable infrastructure can leverage digital technologies to streamline logistics, facilitate trade, and enhance market
connectivity. Moreover, the deployment of smart infrastructure within SEZs, such as intelligent transportation systems and digital
ports, can improve efciency and competitiveness, enabling seamless integration into global supply chains. Additionally, according to
Ref. [87], an analysis of the revealed comparative advantage for certain products based on the Standard International Trade Classi-
cation (SITC) by the World Trade Organization compared Ghana and China. The study found that Ghana holds a more advantageous
position in the global market for three products, including minerals, wood, and food, among the seven products examined. These
ndings underscore the pivotal role of these sectors in propelling Ghana’s economic growth and enhancing its export competitiveness.
The country’s comparative advantage in these sectors offers potential for establishing SEZs that can drive innovation and serve as hubs
for processing, packing and export of wide range of high-quality products, aligning with ndings of [88].
Foreign Direct Investment (FDI) plays a vital role in maximizing the inuence of comparative advantage by stimulating economic
growth and promoting sustainable development. However, according to studies by Ref. [31], deviating from comparative advantage is
seen as a successful method for integrating into global value chains. Insights from Ref. [89] underscore the role of SEZs in attracting
FDI, particularly in labor-intensive sectors such as textiles and leather, aligning with Ethiopia’s comparative advantage. Therefore,
within the African context, FDI can be utilized to leverage natural resource advantages for industrialization and bolster competi-
tiveness. Consequently, policymakers should enact favorable investment policies, enhance infrastructure, and fortify institutions to
effectively attract and retain FDI.
From the practical standpoint, Matching SEZs with comparative advantage holds signicant potential to support various stake-
holders, including small and medium-sized enterprises (SMEs), entrepreneurs, and local communities in Africa. For SMEs and en-
trepreneurs, SEZs tailored to local comparative advantages offer a conducive ecosystem for business expansion and innovation. These
zones provide SMEs with access to specialized infrastructure, support services, and market linkages, enabling them to capitalize on
their strengths and improve skill development [89]. Additionally, SEZs aligned with comparative advantages can serve as incubators
for entrepreneurship and innovation, creating a vibrant ecosystem that nurtures new ventures and startups. By providing access to
mentorship, nancing, and networking opportunities, these zones enable aspiring entrepreneurs to translate their ideas into viable
businesses and contribute to economic diversication, thereby fostering a culture of entrepreneurship within local communities [89].
Local communities also stand to benet signicantly from SEZs matched with comparative advantages. These zones generate
employment opportunities, both directly through job creation within SEZ enterprises and indirectly through the multiplier effect on
supporting industries and services [36]. By prioritizing local hiring and procurement, promoting inclusive growth and socioeconomic
development within surrounding communities the zones can contribute to poverty reduction, income generation, and improved living
standards for local residents. Also, when matched with comparative advantage, SEZs can stimulate infrastructure development and
urbanization, spurring investment in roads, utilities, housing, and social amenities in host regions. This infrastructure investment can
support community development initiatives, such as education, healthcare, and skills training programs, fostering human capital
development and social empowerment, thereby laying the foundation for long-term sustainable development [90]. Therefore,
matching SEZs with comparative advantages serves as a point of departure for promoting economic prosperity and social inclusion. By
leveraging the unique strengths of each region, SEZs create synergies between businesses, government, and local communities, driving
sustainable growth and shared prosperity. Policymakers should prioritize the development of SEZs that maximize value creation,
innovation, and inclusivity, ensuring that the benets accrue equitably to all stakeholders and contribute to the overall well-being of
society.
Comprehensively addressing challenges in logistics, transport, and stakeholder engagement is essential for the success of matching
SEZs to comparative advantage. By investing in infrastructure, implementing supportive policies, building capacity, and fostering
stakeholder collaboration, policymakers can create an enabling environment that maximizes the potential of SEZs to drive economic
growth, promote industrialization, and enhance competitiveness while ensuring that the benets are shared equitably among all
stakeholders. Also, the establishment of high-polluting industries, like leather manufacturing, can present notable environmental
obstacles that must be meticulously tackled to guarantee sustainable development. Therefore, it is crucial to implement robust
environmental policies and regulations such as Efuent Treatment Regulations, Pollution Prevention Measures, Air Quality Standards,
Waste Management Regulations, and Environmental Monitoring and Enforcement to mitigate the environmental impact of contam-
inant industries while leveraging the comparative advantage they offer.
6. Conclusion
This study underscores the signicance of matching comparative advantage to SEZs as a strategic approach for fostering sustainable
industrialization in African countries using RCA matrix. By identifying the specic sectors where Ghana, Ethiopia, and South Africa
have a comparative advantage—cocoa and cocoa-related products, coffee, and mineral ores and concentrates, respectively—the study
advocates for the establishment of dedicated SEZs to promote these industries. Furthermore, the study highlights the importance of
exploring additional sectors with potential for each country beyond their primary comparative advantages. For Ghana, this includes
mineral fuel and commodity transactions, for Ethiopia, machinery and transportation, and for South Africa, manufactured goods and
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
15
foods. Diversifying into these sectors can contribute to economic growth, employment generation, and enhanced competitiveness.
While the RCA matrix provides valuable insights into export competitiveness, it may overlook other critical factors such as global
demand trends, domestic supply constraints, and non-tariff barriers. Therefore, future research should conduct a more detailed
analysis that incorporates these factors to better inform SEZ development strategies.
The study recommends that policymakers should develop targeted policies and incentives to support the establishment and
operation of SEZs aligned with comparative advantages. This involves investing in infrastructure, providing access to nance, facil-
itating technology transfer, and promoting collaboration between public and private sectors. Additionally, policymakers should pri-
oritize integrating supply chain management principles into the core of SEZ operations. This entails fostering linkages between SEZ
enterprises, domestic suppliers, and global markets to enhance value addition, efciency, and resilience. Moving forward, it is
imperative for future research to expand its scope to include a comprehensive assessment of the socio-economic impacts of SEZs
tailored to comparative advantages across a broader array of African countries. This entails evaluating their efcacy in fostering in-
clusive growth, reducing poverty, and promoting sustainable development. Also, ongoing monitoring and evaluation are essential to
track the performance of SEZs over time and identify areas for improvement. Matching comparative advantage to SEZs offers a
promising pathway for African countries to achieve diversied economic growth and sustainable industrialization. By leveraging their
unique strengths and exploring sectors with potential, countries can unlock new opportunities for development and prosperity.
However, success requires a holistic approach that addresses logistical challenges, fosters stakeholder engagement, and integrates
supply chain management principles into SEZ operations. Through strategic planning, targeted policies, and continuous innovation,
African countries can realize the full potential of SEZs as engines of economic transformation and drivers of sustainable development.
CRediT authorship contribution statement
Isah Ibrahim Danja: Writing – review & editing, Writing – original draft, Formal analysis, Data curation, Conceptualization.
Xingping Wang: Writing – review & editing, Supervision, Conceptualization.
Declaration of competing interest
The authors declare the following nancial interests/personal relationships which may be considered as potential competing in-
terests: Xingping Wang reports nancial support was provided by Social Science Foundation of China. If there are other authors, they
declare that they have no known competing nancial interests or personal relationships that could have appeared to inuence the work
reported in this paper.
References
[1] Summit on Africa’s Industrialization and Economic Diversication | African Union. https://au.int/en/summit-africa-industrialization-economic. [Accessed: 10,
25,2023].
[2] L. Sign´
e, C. Johnson, The Potential of Manufacturing and Industrialization in Africa: Trends, Opportunities, and Strategies, The Brookings Institution, New York,
NY, 2018.
[3] African Development Bank Group, Industrialize Africa, Communication and External Relations Department (2018). Pp 1-4.https://www.afdb.org/sites/default/
les/2019/07/05/hight_5_industrialize_africa.pdf. (Accessed 24 August 2023).
[4] United Nations Economic Commission for Africa, Economic Report on Africa 2017. https://www.uneca.org/economic-report-africa-2017. Pp 134-161 [Accessed
January, 20, 2024].
[5] UNIDO, Annu. Rep. (2020). https://www.unido.org/annualreport2020. Pp 29-33.(Accessed 28 January 2024).
[6] Deloitte Switzerland, Global Manufacturing Competitiveness Index, Deloitte | Manufacturing. https://www2.deloitte.com/ch/en/pages/manufacturing/
articles/global-manufacturing-competitiveness-index.html. Pp 37-41[Accessed February, 22, 2024].
[7] Y. Tao, Z. Lu, Springerlink (Online Service), Special Economic Zones and China’s Development Path, Springer Singapore, Singapore, 2018.
[8] B. Hee-seok and P. Keun-sik, Factors to be considered for Improving Free Economic Zone in Korea, http://faculty.washington.edu/karyiu/confer/xian05/
papers/bang.pdf. Pp 1-15 [Accessed: January. 5, 2024].
[9] Ricardo Monge-Gonz´
alez, Moving up the Global Value Chain: the Case of Intel Costa Rica, Lima: ILO Regional Ofce for Latin America and the Caribbean INTEL_
study_case__english__version.Pdf.
[10] S.A. Guti´
errez de Pi˜
neres, M. Ferrantino, Export diversication and structural dynamics in the growth process: the case of Chile, J. Dev. Econ. 52 (2) (1997)
375–391.
[11] B. Klinger, D. Lederman, Discovery and Development: an Empirical Exploration of ’New’ Products, The World Bank, Washington DC, 2004. Working Paper
Policy Research n-3450.
[12] IMF, Sustaining Long-Run Growth and Macroeconomic, Stability in Low-Income Countries: the Role of Structural Transformation and Diversication, The
International Monetary Fund, Washington, 2014. IMF Policy Paper.
[13] R. Hausmann, J. Hwang, D. Rodrik, What you export matters, J. Econ. Growth 12 (1) (2007) 1–25.
[14] R. Anand, S. Mishra, N. Spatafora, Structural Transformation and the Sophistication of Production, The International Monetary Fund, Washington DC, 2012.
IMF Working Paper WP 12/59.
[15] H. Hesse, Export Diversication and Economic Growth, Commission on Growth and Development Working Papers No 21, The World Bank, Washington DC,
2008.
[16] J. Jarreau, S. Poncet, Export sophistication and economic growth: evidence from China, J. Dev. Econ. 97 (2) (2012) 281–292.
[17] K. Mau, Export diversication and income differences reconsidered: the extensive product margin in theory and application, Rev. World Econ. 152 (2) (2016)
351–381.
[18] P. Lectard, E. Rougier, Can developing countries gain from defying comparative advantage? Distance to comparative advantage, export diversication and
sophistication, and the dynamics of specialization, World Dev. 102 (2018) 90–110.
[19] G. Lafay, Avantage comparatif et comp´
etitivit´
e, Econ. Prospect. Int. 29 (1987) 39–52.
[20] A. Amsden, Asia’s Next Giant: South Korea and Late Industrialization, Oxford University Press, New York, 1989.
[21] M. Aoki, H.-K. Kim, M. Okuno-Fujiwara, The Role of Government in East Asian Economic Development: Comparative Institutional Analysis, Clarendon Press,
Oxford, 1998.
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
16
[22] R. Wade, Governing the Market, Princeton University Press, Princeton and Oxford, 1990.
[23] M. Yoshitamu, The comparative advantage of China’s manufacturing in the Twenty-rst Century, in: China in the 21st Century: Long-Term Global Implications,
OECD, France, 1996, pp. 62–66.
[24] A. Shohibul, Revealed comparative advantage measure: ASEAN-China trade ows, J. Econ. Sustain. Dev. 4 (7) (2013) 136–145.
[25] S. Ismail, S. Ahmed, Static and dynamic RCA analysis of India and China in world economy, International Studies of Economics 17 (2) (2022) 228–260.
[26] M. Mzumara, A. Chingarande, R.T. Karambakuwa, An analysis of the revealed comparative advantage in Southern African development community member
states, J. Sustain. Dev. Afr. 15 (4) (2013).
[27] R. Stellian, J. Danna-Buitrago, Revealed comparative advantages and regional specialization: evidence from Colombia in the Pacic Alliance, J. Appl. Econ. 22
(1) (2019) 349–379.
[28] A. Cu˜
nat, M.J. Melitz, A many-country, many-good model of labor market rigidities as a source of comparative advantage, J. Eur. Econ. Assoc. 8 (2–3) (2010)
434–441.
[29] R. Hausmann, D. Rodrik, Economic development as self-discovery, J. Econ. Dev. 72 (2003) 603–633.
[30] A. Harrison, A. Rodríguez-Clare, Trade, foreign investment, and industrial policy for developing countries, in: D. Rodrik, M. Rosenzweig (Eds.), Handbook of
Development Economics vol. 5, North Holland, The Netherlands, 2010, pp. 4039–4214.
[31] T. Harding, B. Javorcik, Foreign direct investment and export upgrading, Rev. Econ. Stat. 94 (4) (2012) 964–980.
[32] OECD, The Participation of Developing Countries in Global Value Chains: Implications for Trade and Trade-Related Policies, OECD Publishing, 2015. OECD
Trade Policy Paper, No. 179.
[33] UNCTAD, World Investment report, Global Value Chains: Investment and Trade for Development, United Nations Conference on Trade and Development,
United Nations Publication, 2013, 2013.
[34] S. Lall, The technological structure and performance of developing country manufactured exports, 1985-98, Oxf. Dev. Stud., vol. 28, no. 3, pp. 337-369, 2000.
[35] UNIDO, Sustainable Industrialization for Shared Prosperity, United Nations Industrial Development Organization, 2016.
[36] T. Farole, G. Akinci, Special Economic Zones: Progress. Emerging Challenges and Future Directions, World Bank, Washington, DC, 2011.
[37] World Bank Group, Special Economic Zones: an Operational Review of Their Impacts, World Bank. .http://documents.worldbank.org/curated/en/
316931512640011812/Special-economic-zones-an-operational-review-of-their-impacts [Accessed: December. 25, 2023].
[38] T. Skica, J. Rodzinka, E. Ociepa-Kicinska, Organizational forms of entrepreneurship support: a case study, European Research Studies Journal XXIV (Issue 3)
(Aug. 2021) 367–385, https://doi.org/10.35808/ersj/2359.
[39] S.A. Frick, A. Rodríguez-Pose, Special economic zones and sourcing linkages with the local economy: reality or pipedream? Eur. J. Dev. Res. (Mar. 2021)
https://doi.org/10.1057/s41287-021-00374-4.
[40] T. Chakraborty, H. Gundimeda, V. Kathuria, Have the special economic zones succeeded in attracting FDI?—analysis for India, Theor. Econ. Lett. 7 (3) (2017)
623–642, https://doi.org/10.4236/tel.2017.73047.
[41] E.M. Graham, Do export processing zones attract FDI and its benets? Experience from China and lessons for Russia, Internationalization and economic policy
reforms in transition countries 1 (2005) 251–272.
[42] J. Wang, The economic impact of special economic zones: evidence from Chinese municipalities, J. Dev. Econ. 101 (Mar. 2013) 133–147, https://doi.org/
10.1016/j.jdeveco.2012.10.009.
[43] S.R. Sanders, D.L. Brown, The migratory response of labor to special economic zones in the Philippines, 1995–2005, Popul. Res. Pol. Rev. 31 (1) (Nov. 2011)
141–164, https://doi.org/10.1007/s11113-011-9220-7.
[44] X. Cirera and Q. Qasim, Supporting Growth-Oriented Women Entrepreneurs: A Review of the Evidence and Key Challenges, Washington, DC: World Bank Group.
http://documents1.worldbank.org/curated/en/301891468327585460/pdf/92210 [Accessed January, 24, 2024].
[45] A. Rodríguez-Pose, et al., The challenge of developing special economic zones in Africa: evidence and lessons learnt, Regional Science and Policy Practice 14
(2022), 456–48.
[46] UNCTAD, World Investment Report, UNCTAD (2019). https://unctad.org/publication/world-investment-report-2019. Pp 149-150(Accessed 25 December
2023).
[47] H. Amirahmadi, W. Wu, Export processing zones in Asia, Asian Surv. 35 (9) (Sep. 1995) 828–849, https://doi.org/10.1525/as.1995.35.9.01p00532.
[48] A. Mondal, Role of the export processing zones in the industrialization process: lessons for the future, in: R.I. Rahman (Ed.), Performance of the Bangladesh
Economy: Selected Issues, Bangladesh Institute of Development Studies, Dhaka, 2003, pp. 93–122.
[49] A. Aggarwal, Special economic zones: revisiting the policy debate, Econ. Polit. Wkly. 41 (43/44) (2006) 4533–4536. https://www.jstor.org/stable/4418855.
(Accessed 24 January 2024).
[50] A.G. Hu, Technology parks and regional economic growth in China, Res. Pol. 36 (1) (Feb. 2007) 76–87, https://doi.org/10.1016/j.respol.2006.08.003.
[51] A. Khandelwal, M. Teachout, and R. Macchiavello, Spillovers from Special Economic Zones: Micro Evidence from Myanmar, International Growth Centre
Project. .https://www.theigc.org/project/spillovers-special-economic-zones-micro-evidence-myanmar/[Accessed February 24, 2024].
[52] R. Hausmann, J. Obach, and M. A. Santos, Special Economic Zones in Panama: Technology Spillovers from a Labor Market Perspective, CID Working Paper 326,
Cambridge, MA: Center for International Development at Harvard University. https://growthlab.cid.harvard.edu/les/growthlab/les/sez_panama_wp_326.
pdf. [Accessed January. 4, 2024].
[53] S. Barrios, L. Bertinelli, E. Strobl, Co-agglomeration and spillovers, Reg. Sci. Urban Econ. 36 (4) (Jul. 2006) 467–481, https://doi.org/10.1016/j.
regsciurbeco.2006.03.001.
[54] K. Nadvi and H. Schmitz, Industrial Clusters in Less Developed Countries: A Review of Experiences and Research Agenda, IDS Discussion Paper 339, Brighton,
Sussex: Institute of Development Studies (IDS), University of Sussex. https://www.ids.ac.uk/publications/industrial-clusters-in-less-developed-countries-
review-of-experiences-and-research-agenda/. [Accessed January. 14, 2024].
[55] E. Thompson, Clustering of foreign direct investment and enhanced technology transfer: evidence from Hong Kong garment rms in China, World Dev. 30 (5)
(2002) 873–889.
[56] J.F. Brun, J.L. Combes, M.F. Renard, Are there spillover effects between coastal and noncoastal regions in China? China Econ. Rev. 13 (2–3) (Jan. 2002)
161–169, https://doi.org/10.1016/s1043-951x(02)00070-6.
[57] A. Palit, Growth of special economic zones (SEZs) in India, Journal of Infrastructure Development 1 (2) (Dec. 2009) 133–152, https://doi.org/10.1177/
097493060900100203.
[58] B. Marina, B. Aleksandr, SEZ in Africa: causes of the crisis and development potential, advances in social science, education and humanities research, vol. 527,
in: Proceedings of the VIII International Scientic and Practical Conference ’Current Problems of Social and Labour Relations, 2021. ISPC-CPSLR 2020).
[59] K. Malindini, Reconguring Special Economic Zones for Sustainable Development and Inclusive Growth in Africa: A Theoretical Review, March 2022. Working
Paper Series on Charter Cities in Africa.
[60] P. Pommier, Special Secure Economic Zones: the Role of African SEZs in Accelerating Co-development with Europe, INSTITUT DE PROSPECTIVE DE
ECONOMIQUE DU MUND DE MEDITTARANEEN, 2021. (Accessed 5 May 2023).
[61] P. Mwanda and M. Shimukunku, Special Economic Zones in Southern Africa: White Elephants or Latent Drivers of Growth and Employment? the Case of Zambia
and South Africa, WIDER Working Paper, 2020/160, United Nations University World Institute for Development Economics Research.
[62] C. Hazvinei Vhumbunu, Staple crops processing zones, Food Security and Restoration of Local Food Systems in Zimbabwe, Africa Development 47 (3) (Oct.
2022) 197–222, https://doi.org/10.57054/ad.v47i3.2680.
[63] A.V. Deardorff, How robust is comparative advantage? Rev. Int. Econ. 13 (5) (Nov. 2005) 1004–1016, https://doi.org/10.1111/j.1467-9396.2005.00552.x.
[64] D. Ricardo, The Principles of Political Economy and Taxation, Cambridge University Press, Cambridge, 1981.
[65] K. Tochkov, Trade Potential and Trade Integration of the Russian Far East: A Regional Perspective, Spatial Economics 4 (2018) 21–38, https://doi.org/
10.14530/se.2018.4.021-038.
I.I. Danja and X. Wang
Heliyon 10 (2024) e34411
17
[66] A. Prakash, The Role of Industrialization and ICT in Africa’s Growth and Integration into Global Value Chains, Policy Brief, Economic Research Institute for
ASEAN and East Asia, no. 2019-01, July 2019, ISSN: 2086-8154.
[67] G.V. Podbiralina, J.C. Asiagba, Economic growth drivers in sub-saharan Africa, Current Trends, Outlines of Global Transformations: Politics, Economics, Law 11
(5) (2018) 38–54.
[68] Development Goals in an Era of Demographic Change: Global Monitoring Report 2015–2016 (Overview), Joint Publication of the World Bank Group and The
International Monetary Fund, 2016. http://partizandr.ru/bogatstvo-v-drevnej-rusi/. (Accessed 22 March 2024).
[69] M. Ledeneva, O. Irina, I. Elena, P. Tatiana, Industrialization in Sub-saharan Africa: Challenges and Opportunities, in Supporting Inclusive Growth and
Sustainable Development in Africa - Volume I Sustainability in Infrastructure Development, Palgrave Macmillan Publishing, 2020, 978-3-030-41978-3.
[70] UNCTAD, Data exploration. https://unctadstat.unctad.org/en/Exploration.html. (Accessed 20 August 2023).
[71] F. Kutin-Mensah, D. Huang, R.O. Boateng, R. Chiponga, Has the special economic zone approach improve Ghana’s competitiveness in the global market? Bus.
Econ. Res. 7 (2) (Jun. 2017) 19, https://doi.org/10.5296/ber.v7i2.11142.
[72] Benets and Challenges of Special Economic Zones – CRDF Global. https://www.crdfglobal.org/insights/benets-and-challenges-special-economic-zones/.PP 1-
2 [Accessed December, 15, 2023].
[73] J. Chen, X. Long, S. Lin, Special Economic Zone, Carbon Emissions and the Mechanism Role of Green Technology Vertical Spillover: Evidence from Chinese
Cities 19 (18) (Sep. 2022) 11535, https://doi.org/10.3390/ijerph191811535.
[74] T. Moyo, Globalisation and industrialisation in the southern Africa development community (SADC): challenges and opportunities, Afr. Dev. 45 (2) (Aug. 2021),
https://doi.org/10.57054/ad.v45i2.645.
[75] D.Z. Zeng, How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Development? The World Bank, 2011 https://doi.org/10.1596/1813-
9450-5583.
[76] L. Moberg, V. Tarko, Why No Chinese miracle in Africa? Special economic zones and liberalization avalanches, SSRN Electron. J. (2014), https://doi.org/
10.2139/ssrn.2352520.
[77] K. Anar, R.A. Hill, C. Shiel, Highlighting the sustainability implications of urbanisation: a comparative analysis of two urban areas in Ghana, Land 9 (9) (Sep.
2020) 300, https://doi.org/10.3390/land9090300.
[78] Can Special Economic Zones Drive Growth in Urbanizing Africa?, International Growth Centre. .https://www.theigc.org/events/can-special-economic-zones-
drive-growth-urbanising-africa [Accessed: February. 20, 2023].
[79] C. O. S., Place-based policies and the future of industrial policy in Africa, J. Afr. Stud. 2021 (100) (Dec. 2021) 53–59, https://doi.org/10.11619/
africa.2021.100_53.
[80] A. Oqubay, et al., The Oxford Handbook of Industrial Policy, Oxford University Press, 2020.
[81] Coega Development Corporation, Integrated annual report 2019/20. https://provincialgovernment.co.za/entity_annual/601/2020-eastern-cape-coega-
development-corporation-(cdc)-annual-report.pdf, 2020. (Accessed 25 March 2023).
[82] COEGA development corporation. https://www.coega.co.za/site/. (Accessed 25 March 2023).
[83] Richards Bay, Industrial Development Zone, Annual Report, 2017/2018, 23 (March) 2023. https://www.thedtic.gov.za/wp-content/uploads/RBIDZ.pdf.
[84] S.A. Frick, A. Rodriguez-Pose, Are special economic zones in emerging countries a catalyst for growth of surrounding areas? Transnational Corporations Journal
26 (2) (2019).
[85] A. Woldemichael, et al., Transforming Africa’s agriculture through agro-industrialization, Africa Economic Brief 8 (7) (2017) 1–12.
[86] K.M. Florence, et al., Has the special economic zone approach improved Ghana’s competitiveness in the global market? Bus. Econ. Res. 7 (2) (2017) 19–34.
[87] J. Page, et al., Manufacturing Transformation: Comparative Studies of Industrial Development in Africa and Emerging Asia, Oxford University Press, 2016,
p. 336.
[88] Z.S. Eshete, et al., Resource allocation across industrial sectors, in: Growth, Poverty, and Income Inequality in Ethiopia: A Macro-Micro Approach, 2019.
Partnership for Economic Policy Working Paper, no. 2019-16.
[89] T. Farole, D. Winkler, Firm location and the determinants of exporting in low-and middle-income countries, J. Econ. Geogr. 14 (2) (2014) 395–420.
[90] T. Farole, D. Winkler, Does FDI work for Africa? Assessing local spillovers in a world of global value chains, Economic Premise 135 (2014).
I.I. Danja and X. Wang
