Delineation of special economic zones using integer linear programming

Abstract

Special Economic Zones (SEZs) are delimited geographic areas located within the borders of a country with the objective of stimulating the local economy of a specific region. SEZs have multiple labor and fiscal benefits that allow them to enhance the economic level of the region through the generation of quality jobs, export growth, government investment, and technology transfer, just to name a few. China and other countries have demonstrated the benefits of SEZs and their economic impact on the local region. This article proposes a method based on Integer Linear Programming to delineate SEZs in a way that takes into account the population of the region, the distance and travel time between municipalities, the infrastructure of the region, and the Federal Laws imposed by the government. Experimental results based on real instances concerning the Isthmus of Tehuantepec, México, validate the method and enable a graphical visualization of the solution.