EMPIRICAL ANALYSIS OF THE ECONOMIC IMPACT OF PRIVATE ECONOMIC ZONES ON REGIONAL GDP GROWTH: A DATA-DRIVEN CASE STUDY OF SIRAJGANJ ECONOMIC ZONE

Abstract

This study investigates the economic impact of private economic zones (PEZs) on regional gross domestic product (GDP) growth, with a particular focus on the Sirajganj Economic Zone in Bangladesh. Employing a systematic approach guided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) framework, a total of 35 peer-reviewed articles and institutional reports published between 1995 and 2025 were reviewed. The analysis synthesizes both domestic and international evidence to uncover patterns, mechanisms, and comparative insights into how PEZs influence regional economic performance and structural transformation. Findings demonstrate that PEZs contribute substantially to employment generation, industrial output expansion, and export competitiveness, thereby stimulating measurable GDP growth at the regional level. These effects often extend beyond the designated zones through supplier development, labor market spillovers, technological transfer, and infrastructure multipliers that enhance broader regional connectivity and productivity. The comparative analysis between public and private zone models reveals distinct performance characteristics: private zones exhibit greater efficiency in implementation, stronger investor confidence, and a broader mix of domestic and foreign direct investment, whereas public zones emphasize compliance, long-term governance stability, and alignment with national industrial policies. The Sirajganj Economic Zone is highlighted as a case study of how an inland, privately managed zone can deliver tangible economic benefits when supported by targeted infrastructure investments, policy facilitation, and integration into supply chain networks.  It demonstrates that the success of PEZs depends not only on investment attraction but also on ensuring backward and forward linkages, labor market adaptability, and complementary infrastructure. Ultimately, this review positions private economic zones as pivotal drivers of regional economic diversification and competitiveness, while highlighting the critical role of coordinated governance, transport corridors, and supply chain integration in maximizing their developmental impact.