Export Processing Zones in Developing Countries: Theory and Empirical Evidence

Author(s):  
V. N. Balasubramanyam
1997 ◽  
Vol 2 (4) ◽  
pp. 391-418 ◽  
Author(s):  
Ana Teresa Romero

For many developing countries export processing zones (EPZs) are vital investment-promotion strategies. Even though most African EPZs have not attracted much investment, interest in developing them continues to grow. Over the years EPZs have acquired a bad image because of widespread reports of violations of national and international labour standards. The experiences of countries in other regions show that labour problems arise from an underestimation of the need to address the labour-related aspects of activities in EPZs, the non-observance of national labour standards, lack of social dialogue and weak supervisory institutions. There are signs that the conditions that have led to labour problems in other regions are being replicated in Africa, causing tensions in certain zones. The article argues that on-going efforts in different regions to deal with these problems hold useful lessons for EPZ host countries in Africa.


2003 ◽  
Vol 42 (4II) ◽  
pp. 927-940
Author(s):  
Mohammad Hanif Akhtar

The literature on EPZs shows that these are a second-best solution compared with generalised countrywide reforms, but that, where countrywide reforms are difficult to implement, they can be a useful weapon in the development arsenal [World Bank (2001)]. EPZs have been instrumental not only in increasing exports but also attracting export-oriented foreign direct investment (FDI). China is a classic example to be mentioned here where the levels of FDI have gone up massively over the last ten years. Added up with exports increase are also the benefits of employment generation, development of backward and forward linkages and strengthening the industrial base. The phenomenon of export-processing zones (EPZs) is a part of broader context of structural changes in global economic development. During the last few decades, there has been a tremendous increase in exports of manufactured goods especially from developing countries. EPZs have emerged as an important channel of export generation, especially of manufactured goods, from most of the developing countries e.g. East Asia, Mexico, Morocco etc. Their significance cannot be undermined because of the location-specific advantages and infrastructure facilities possessed by them.


1985 ◽  
Vol 24 (1) ◽  
pp. 39-50
Author(s):  
Gunnar Flфystad

This paper analyses whether the developing countries are pursuing an optimal foreign trade policy, given the theoretical and empirical evidence we have. The paper concludes that constraints in imposing other taxes than tariffs in many developing countries may justify having tariffs as part of an optimal taxation policy.


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