Summary: Special Economic Zones (SEZs) are widely used policy instruments in developed and emerging economies to stimulate growth in specific geographic areas and economic sectors. Governments globally refer to their zone projects by various names, including Free Zones (FZs), Free Trade Zones (FTZs), Export Processing Zones (EPZs), Multi-Use or Multi-Functional Special Economic Zones (MFSEZs), Industrial Zones, among others. SEZs are designed to attract Foreign Direct Investment (FDI), create jobs, enhance participation in the Global Value Chain (GVC), and pilot economic reforms with zone-specific trade regulations (UNCTAD, 2019). They aim to complement market forces by addressing market failures, such as inefficient land markets, inadequate industrial infrastructure, and poor regulatory and business environments caused by coordination failures between the government and the private sector (Zeng, 2021). It is generally believed that SEZs can enhance an economy’s well-being. However, despite their potential, some SEZs have failed to make a significant impact and, in some cases, have even become economic burdens.