Why do some special economic zones fail to attract an adequate level of investment? - the case of the special economic zone in Batam, Bintan and Karimun.

• Main Author: Schlosser, Christian.
• Other Authors: Deborah Kay Elms
• Format: Theses and Dissertations
• Language: English
• Published: 2013
• Subjects: DRNTU::Social sciences::Political science
• Online Access: http://hdl.handle.net/10356/53082
• Institution: Nanyang Technological University

The concept of Special Economic Zones has become a widely excepted tool of economic development in developing countries. Most zones rely on the host countries’ abundance of labor and land to attract Foreign Direct Investment. SEZ concept has been particularly successful when strong central government influence has led to the implementation of beneficial labor and land policies for foreign investors. However, not all establishments have attracted the targeted amount of investment. In many cases, insufficient central government control led to weak labor and land policy implementation, which increased the risk for foreign investors. The following paper will provide an in-depth analysis of the recently established Special Economic Zone in Batam, Bintan and Karimun and will fill the gap in the current literature regarding the failure of these establishments.