By showing that manufacturing investment can be successful, the development of special economic zones in Cambodia may indirectly promote foreign direct investment outside the zones.

This study examines the role of Special Economic Zones (SEZs) in Cambodia, and finds that the SEZs have attracted significant levels of foreign investment that would not have been present otherwise. These investments have created around 68,000 jobs, with equal or better pay and better prospects than the alternatives. By leaving it to the private sector, Cambodia has avoided the large and sometimes wasteful public sector set-up costs associated with SEZ establishment in many other countries.