SEZs in the implementation of industrial policy in Southeast Asian countries

Increasing the pace of economic growth, attracting investments, and technological development are considered by governments of developing countries as priority goals. Methods of economic regulation, in particular the creation of special economic zones (SEZs) with a set of preferential investment and production conditions are used to this end. This paper analyzes the compliance of the applied model of SEZs with the level of industrial development, and the current stage of industrial development in the country. The hypothesis is that the formation of SEZs in developing countries and the system for evaluating their effectiveness are determined by the level of industrial development and resource availability, as characteristics of the industrial development of the economy. The article uses systemic and institutional-evolutionary methodology, and methods of analysis, synthesis, and comparative analysis. The study reveale d that at an early stage of industrial development, countries actively attract foreign capital by creating export-oriented zones. Attracting foreign direct investment can increase the pace of economic growth, form an industrial complex, and make qualitative changes in the structure of the workforce. The attractiveness of SEZs for foreign investment depends on the geographical features of the location, the available resources, and the infrastructure. During the transition of countries to the final stage of industrialization, it is advisable to use a SEZ open to the domestic market, aimed at maintaining the innovation sector and integrating research and production. Maintaining an isolated SEZ export model may increase the vulnerability of the host country to global challenges and slow down the transition to a post-industrial economy.