Theoretical Justification for the Implementation of Special Economic Zones: The Case of Luanda-Bengo Economic Zone in Angola

Abstract

Purpose: In the present study, a literature review was carried out on theories of regional development, namely: the classic ones, those with an emphasis on agglomeration factors, and new theories of regional development. It intended to provide a theoretical foundation for implementing special economic zones, contextualizing the analysis to the Luanda-Bengo Special Economic Zone. Materials and Methods: Thus, the document analysis technique was used to review relevant literature on regional development and its main supporting theories. Findings: It was possible to achieve three main results: that the existence of hubs that bring together population and capital play a central role in the location of commercial and industrial activities; that companies come together in a logic of cooperation, innovation competitiveness, and ZEELB, as a hub of industrial activity, is no exception. Finally, the factors that determine the location and spatial agglomeration of economic activities, as well as the relationships of interdependence established between the various driving and driven units, possible in a ZEE, are also present in the foundations of adopting ZEELB operations. Implications to Theory, Practice and Policy: Theories about the location and agglomeration of economic activities in geographically, customs, and legally demarcated spaces, such as ZEELB, should be used in studies for future implementations of similar projects. Exchange between academia and structuring investment planning bodies such as ZEELB, so that based on its adoption as part of the global economic development strategy, is necessary. Public policymakers should see ZEELB as an opportunity to serve as a laboratory for policies at the following levels: tax, customs, regulatory, commercial, and management