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Special economic zones location decision and quality of life in Ethiopia: the case of Bole Lemi-1 and Eastern Industry Zone

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Abstract

Ethiopia’s special economic zone (SEZ) development program features fuzzy knowledge about location decision-making and its effect on host urban resident’s quality of life (QOL). This study looks into SEZ’s location decisions and the effect on the quality of life by considering Bole Lemi-1 (BL-1) and Eastern Industry Zone (EIZ) cases from central Ethiopia. The research anchors on conceptual frameworks of composited industrial location, political economy, and QOL. A household sample survey, in-depth interviews, and scanning of secondary information were employed. The subjective QOL indicators were analyzed using descriptive, exploratory analysis (EFA) and confirmatory factor analysis (CFA) techniques. The BL-1 and EIZ practices portray the SEZ location decisions in the country were largely driven politically with minimal techno-economic rationales, featuring a top-down approach and less participatory. The EFA result depicts that the ‘Governance’ structure witnessed high factor loadings with the strongest contribution in relative terms that can explain 25.29% of the total variance in QOL indicators. The ‘Environment’, ‘Economic’ and ‘Sociocultural’ factors can explain 16.75%, 14.69%, and 9.31% of the total variance, respectively. The CFA confirms the EFA-identified factors suggesting the influence of the identified variables on the QOL. We argue that there is a close association between a special economic zone location decision and people’s QOL residing near zones. Yet, the extent depends on how well the swing balance across political and techno-economic dimensions is justified. We further debate that sub-components of QOL may have varying significance and influences under different geographies, policy environments, and the development status of countries.

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Notes

  1. Sustainable Development and Poverty Reduction Program (SDPRP) had a life span of three-years period (2002/03 – 2004/05).

  2. A Plan for Accelerated and Sustained Development to End Poverty (PASDEP) covered 2005/06–2009/10.

  3. Growth and Transformation Plan (GTP-I) covered, 2009/10–2014/15.

  4. This Growth and Transformation plan covers 2015/16- 2019/2020 period.

  5. Woreda and Kebele are the lowest administrative units in Addis Ababa and Oromia region, respectively.

  6. Prime Minister Meles Zenawi ruled Ethiopia between 1991 and 2012.

  7. Ethiopian Development Research Institute.

  8. The EPRDF (Ethiopian People Revolutionary Democratic Front) was the ruling party in Ethiopia between 1991 and 2019.

  9. Two new regions named Sidama and Southwest were formed after 2020.

  10. 1 USD = 44.30 ETB as of July 30,2021 (Source: NBE, 2021).

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Acknowledgements

The authors want to acknowledge all interview partners for sharing their information and expertise. All the necessary citations have been made correctly for the sources referred to in the study.

Funding

This study did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.

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Authors and Affiliations

  1. Ethiopian Institute of Architecture, Building Construction and City Development (EiABC), Addis Ababa University, Addis Ababa, Ethiopia

    Eyasu Kumera & Berhanu Woldetensae

  2. Technical University of Berlin (TUB), Berlin, Germany

    Eyasu Kumera

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  1. Eyasu Kumera
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  2. Berhanu Woldetensae
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Correspondence to Eyasu Kumera.

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Ethical approval

All procedures performed in the study involving human participants were in accordance with the ethical standards of the institutional and/or national research committee and with the 1964 Helsinki declaration and its later amendments or comparable ethical standards. The authors included a statement of informed consent in the study sample survey questionnaire to assure the interviewees know every aspect of their participation in the research. Before data collection, the authors contacted all the study participants to obtain their agreement and engaged in the fieldwork with approval from the concerned bodies. Informed consent was obtained from all individual participants included in the study.

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Kumera, E., Woldetensae, B. Special economic zones location decision and quality of life in Ethiopia: the case of Bole Lemi-1 and Eastern Industry Zone. GeoJournal 88, 3985–4008 (2023). https://doi.org/10.1007/s10708-023-10841-6

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