A new SEZ generates GDP in three ways - similar to how new airline destinations attract customers
By George ELIOT When a new Special Economics Zone (SEZ) is set up, it creates economic activities and generates GDP in three ways which are analogous to the way an airline attracts customers for a newly-launched flight destination: A) By tapping pent-up demand that had existed perviously but had not been met. B) By diverting activities (or airline passengers, respectively) from elsewhere, i.e. by stealing market share from other existing operations. C) By generating new demand that had not existed previously. For example, if an airline has just launched flights from Brighton to New York, A-type passengers are those who have always wanted to go to New York but did not want the hassle of flying from an airport further away; B-type passengers are those who were flying to New York via alternative indirect routes and who can now take the direct flight; and C-type passengers are those who only after seeing the news about the launch of the new destination will develop an interest in going to ...