Editing Special economic zone (section)

==SEZ location==
The location of an SEZ and the presence of good infrastructure can determine whether an SEZ will be productive or not. The incentive is to establish SEZs in decentralized areas to promote employment and economic activities. However, SEZs located near large cities tend to be more productive.<ref>{{cite book |last1=World Bank Group |title=Special economic zones: An operational review of their impacts. |date=2017 |url=https://www.worldbank.org}}</ref> This is especially true if the SEZs have access to efficient communication and transportation systems, such as proximity to a port or an airport.<ref>{{cite journal |last1=Madani |first1=Dorsati |title=A review of the role and impact of export processing zones |journal=World Bank Policy Research Working Paper |series=Policy Research Working Papers |date=1999 |volume=2238 |doi=10.1596/1813-9450-2238 |url=https://ssrn.com/abstract=629169}}</ref>

Many zones are deliberately positioned near borders to facilitate [[cross-border trade]] by allowing businesses to leverage tariff advantages and access multiple markets efficiently. For instance, companies operating in border zones can easily source raw materials from neighboring countries or export finished goods to nearby markets.<ref>{{cite journal |last1=European Union |title=Policy brief: European special economic zones |journal=Espon (Fdi) |date=2020}}</ref>

Another important consideration is why firms choose SEZs inside or outside the [[European Union|EU]]. SEZs in the EU offer unparalleled access to the [[European Economic Area|European market]], political stability, and high production standards, which enhance the reputation of products. Additionally, the advanced infrastructure and strong emphasis on sustainability in EU SEZs attract firms focused on long-term investments. Conversely, SEZs in non-EU countries may appeal to businesses seeking lower labor costs, less stringent regulations, or [[Tax incentive|tax incentives]] that might not comply with [[European Union competition law|EU competition rules]]. For example, firms targeting high-growth emerging markets or wishing to bypass stricter EU regulations might opt for SEZs outside the EU. <ref>{{cite journal |last1=Frick |first1=Susanne A. |last2=Rodríguez-Pose |first2=Andrés |title=What draws investment to special economic zones? Lessons from developing countries |journal=Regional Studies |date=2 November 2023 |volume=57 |issue=11 |pages=2136–2147 |doi=10.1080/00343404.2023.2185218 |bibcode=2023RegSt..57.2136F }}</ref>