Preview

Export processing zone

Better Essays
Open Document
Open Document
28086 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Export processing zone
A Review of the Role and Impact of
Export Processing Zones

Dorsati Madani

Address:
PREM- EP
The World Bank
EM: dmadani@worldbank.org

CONTENTS:
Acknowledgments
Disclaimer
List of Abbreviations
Executive Summary
I. Introduction and Definition
A. Definition:
A1. What are EZPs
A2. Characteristics and goals
A3. Why do countries use EPZ and EPF schemes?
II. The Economic arguments for and against EPZs.
A. Foreign exchange earning potential
B. Tax revenue/tax loss effects
C. FDI: catalyst effects
D. FDI: technology transfer, knowledge spillover and backward linkages
E. Employment effect on local/national economy
F. Women and EPZ employment
G. Education/training benefits (human capital development)
H. Wages, labor and safety laws
I. Environmental issues
J. EPZs and the economic and policy environments
III.

EPZs, Globalization, Regional Integration Agreements and WTO
A. EPZs in the context of regional integration/trade arrangements
B. The Uruguay Round, export subsidies and EPZs

IV. The administrative and regulatory environment
A.
B.
C.
D.
E.

Open or closed production area?
Location and infrastructure
Government involvement and institutional needs
Geographical position of the country and access to international markets
Summary of practical lessons for a successful zone

V. The actual experience: two African cases
A. Mauritius
B. Senegal
2

VI. Policy Suggestions
Annex A: Brief review of theories regarding EPZs
Annex B: Brief notes on some African EPZs.
A. Togo
B. Namibia
C. Kenya
D. Cameroon
E. Zimbabwe
References
List of Tables:
Table 1: Incentives and provisions offered in EPZs in the Caribbeans and Central America
Table 2: Incentives and provisions offered in EPZs in select Sub-Saharan African countries
Table 3: Impact of EPZs in select Sub-Saharan African countries
Table 4: Impact of EPZs in select countries
Table 5a: Industrial concentration of select zones
Table 5b: Industrial Concentration


References: Africa Analysis. 1990. “Togo’s Open Door to Hong Kong”, No. 91, February. Alter, R. 1991. “Lessons from the Export Processing Zone in Mauritius” in Finance and Development, 12/91, 7-9. Amirahmadi, H. and W. Wu, 1995. “Export Processing Zones in Asia” in Asian Survey, vol. Bhattacharya, D. 1998. Export Processing Zones in Bangladesh: Economic Impact and Social Issues. Bailey, P., A. Parisotto and G. Renshaw (eds). 1993. Multinationals and Employment - Global Economy of the 1990s Beladi, H. and S. Marjit. 1992. “Foreign Capital and Protectionism” in Canadian Journal of Economics, Vol Bermudez, S. 1993. “The Case for Private Free Zones” in Richard L. Bolin (ed.) Public Vs. Private Free Zones. The Flagstaff Institute, 1993. Bermudez, S. 1990. “ Linking the Maquiladoras (EPZs) to Local Industry” in Richard L. Bolin (ed.) Linking the Export Processing Zone to Local industry Bermudez, S. 1996. “Mexico” in Richard L. Bolin (ed.) Impact of 57 New Export Processing Zones in Mercosur, The Flagstaff Institute. Broad, R. and J. Cavanagh. 1993. Plundering Paradise - The Struggle for the Environment in the Philippines Chen, Xiangming. 1995. “The Evolution of Free Economic Zones and the Recent Development of Cross-National Growth Zones” in mystery source. Coste, C and M. L. Ewane. 1990. “Miracle ou Mirage?” Jeune Afrique, July 1990. Curimjee, A. 1990. “Linkages in Mauritius” in R. L. Bolin (ed.) Linking the Export Processing Zone to Local industry Devereux, J. and L.L. Chien. 1995. “Export Zones and Welfare: Another Look” in Oxford Economic Papers 47, 1995, 704-713. Dijkstra, G. and J. van der Wijk. 1996. “Export Promotion in Costa Rica” in latin America’s New Insertion in the World - Towards Systemic Competitiveness in Small Economies by R. Buitelaar and P. van Dijck, 1996. Mac Millan Press, LTD. Dijkstra, G. and C. R. Aleman. 1996. “The Export Processing Free Zone of San Bartolo in El Salvador” in latin America’s New Insertion in the World - Towards Systemic Competitiveness in Small Economies. Edited by R. Buitelaar and P. van Dijck, 1996. Mac Millan Press, LTD. Dunn, L. 1994. “Education of Women Workers in Caribbean Export Processing Zones: Challenges and Opportunities” in Labour Economics, No Easterly, W. 1993. “How Much do Distortions Affect Growth?” in Journal of Monetary Economics 32, 187-212. Felah, F. 1994. “the Role and Activities of Offshore Companies in the Tunisian Economy”, mimeo. Fiji Reserve Bank, 1993. “ The Tax Free Factory/Tax Free Zone Scheme in Fiji” in Pacific Economic Bulletin, vol Hamada, K. 1974. “An Economic Analysis of the Duty Free Zone” in Journal of International Economic, Vol 4, 225-41. Hood, R. and D. Radack. 1997. Trade and Trade Taxes Projects. Draft. International Trade Division ILO. 1998. Labour and Social Issues Relating to Export Processing Zones. Geneva. ILO/UNCTC. 1988. Economic and Social Effects of Multinational Enterprises in Export Processing Zones Jenkins, M., G. Esquivel and Felipe Larrain B. 1998. “Export Processing Zones in Central America” Johansson, H. 1994. “The Economics of Export Processing Zones Revisited” in Development Policy Review, vol Kapata, D. 1994/95. “Zimbabwe: Free Trade Zone” in Southern African Economist, December 94/January 95, 29-30. Keesing, D.B. 1992. “Trends in Export Processing Zones”, background paper to The World Bank 1992 publication: Export Processing Zones. Kpor, C. 1990. “Investors’ Paradise” in West Africa, No. 3818, 10/29-11/4 1990. Kwang-kuk, C. 1990. “The Outprocessing Linkages in Korean EPZs”, in R. L. Bolin (ed.) Linking the Export Processing Zone to Local industry Lewis, B. 1990. “Linkages in Jamaica” in R. L. Bolin (ed.) Linking the Export Processing Zone to Local industry Matusz. S. 1997. “Adjusting to Trade Liberalization”. Draft of Chapter three of the 1997 Global Economic Prospects, the World Bank. Ministry of Economic Planning and Development. 1994. Economic Indicators – An Occasional Paper , Issue no Ministry of Economic Planning and Development. 1996. Mauritius Economic Review : 19921995, Port Louis, Mauritius. Morna, C. L. 1990. “Africa’s Switzerland?” in Africa Report, September/October, pg 3638. Mungaray, E.M. 1995. “La Industria Maquiladora en Tijuana: Riesgo Ambiental y Calidad de Vida” in Commercio Exterior, vol Namib Times. 1995. “EPZ is Still on Track”. November 7, 1995, 18. Namib Times. 1995. “ Namibia’s EPZ Policy and Structures”. November 7, 1995, 19. Offshore Outlook. 1995. volume 3, issue 29, March. Ocheng, M. 1991. “Export-Processing Zones Draw Lukewarm Investor Response” in African Business, April 1991, 16.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Maquiladoras Analysis Paper
    • 2395 Words
    • 10 Pages

    Maquiladoras Analysis Paper

    The role that the maquiladoras play in the development of a country can be discussed through evaluation of a thriving international capitalism occurring in Mexico 's northern boundary. The word, maquiladora, is used to describe the foreign-owned assembly plants clustered along the border of Mexico and United States. The maquiladora program was first initiated in 1965, a year after the eligibility of Mexican agricultural workers to legally work in the United States through the Bracero program was terminated (Hanson 2003). After this, Mexican border towns such as Tijuana and Juarez became overcrowded with citizens in temporary settlement to find opportunities of returning to the United States. Subsequently, shortages of food, water, shelter and transportation caused the Mexican government to create the National Border Development Program (PRONAF) in 1965 (Gruben 2011). PRONAF was the first step to establishing the maquiladora sector of Northern Mexico. It was implied as a win-win situation that would improve Mexican economy from foreign investment as well as create jobs for those living in the overcrowded border towns. Regions like the maquiladora are referred to as Export Processing Zones (EPZ), which are big industrial estates set up with multinationals in mind (Salzinger 2003). In this case, government bureaucrats from foreign countries would go to major world…

    • 2395 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Best Essays

    Maquiladoras Research Paper
    • 2142 Words
    • 9 Pages

    Maquiladoras Research Paper

    These maquiladoras were set up much like the Export Processing Zones (EPZ) already established in Asia. Manufacturing facilities set up in the EPZ’s are normally companies from foreign nations. The EPZ’s are established outside of the normal customs regulations in the host country allowing for a definite financial advantage. Since these manufacturing plants were leased by foreign companies and…

    • 2142 Words
    • 9 Pages
    Best Essays
    Read More
  • Better Essays

    Gm545 Pp2
    • 1082 Words
    • 5 Pages

    Gm545 Pp2

    2. MacDougall, G. D. A. 1951–1952. British and American Exports: A Study Suggested by the Theory of Comparative Costs. Parts 1 and 2. Economic Journal 61 (244): 697–724; 62 (247): 487–521.…

    • 1082 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Maquiladoras Case Study
    • 822 Words
    • 4 Pages

    Maquiladoras Case Study

    households, the low wages mean that the employed individuals are limited in their ability to reinvest in the Mexican consumer market. Biles comparatively presents the multiplier effect of the maquiladora program in the Yucatan region; he concludes that the low wages and the corporations’ lack of investment into the regional markets hinders the policy’s ability to provide long-term development. The maquiladoras are not able to act like efficient labor multipliers and “every 1,000 export-oriented jobs in Me´rida generate only 111 additional employment opportunities” . Biles presents that in his case study of the Yucatan Peninsula “jobs created by maquiladoras represent less than 1% of employment.” Opposed to what the government promises, the impact “the EOI strategy (export oriented strategy) on overall economic structure is minimal.” In comparison, the maquiladoras and factories that are owned by local Mexican corporations “are more likely to expand their local linkages than foreign-owned assembly plants.” However the policies that the government has put in place favor the…

    • 822 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Karl Jacoby Crimes Against Nature Summary
    • 1739 Words
    • 7 Pages

    Karl Jacoby Crimes Against Nature Summary

    According to the Preface (xvii) of Crimes Against Nature, Jacoby explains his belief of American history as he states “American history is a history that regards humans and nature not as two distinct entities but as interlocking parts of a single, dynamic whole”. Though his ideas have a broad selection, Jacoby constructs his argument on three case studies he has previously done: the creation and administration of Adirondack Park by the State of New York in the late nineteenth century; the federal government efforts to manage Yellowstone National Park through civilian life and military activities between the 1870s and 1910s; and the different protection ideas and efforts at the grand canyon by different public land agencies from the 1890s and 1930s. In each one of these cases, selecting certain boundaries and rules for these areas had consequences for the residents who lived in that area. In Adirondack Park in New York, the mountains surrounded some of the little towns and abutted others meaning a serious concern of limited use of the forest for natural…

    • 1739 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    What Is The Bracero Program?
    • 1206 Words
    • 5 Pages

    What Is The Bracero Program?

    The program was rising then falling right back down in a pattern, which fail to be renew then the program ended. Half a century later, “Mexico Now” illustrates a new vision of a cooperative partnership between domestic and foreign capital. Men no longer occupy the center of the frame, having been replaced by women as the primary workers in export processing.…

    • 1206 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    The Other Side of Immigration
    • 957 Words
    • 4 Pages

    The Other Side of Immigration

    Although it cannot be said that the signing of the North American Free Trade Agreement had an overall negative impact for Mexico, this documentary paid more attention to rural regions of Mexico where infrastructures were less developed. Therefore, these regions benefited least from NAFTA as they were heavily dependent upon agriculture farming. Free trade had brought these rural farmers to its knees since cheaper good were being imported from the United States. This crippled the local farmers as it was no longer productive to plant crops and at the same time compete with cheaper imported goods. This forced them to look for jobs and support their living elsewhere. In addition to this, the corruption within the Mexican government worsened the problem whereby subsidies were given to favored individuals. Hence only a select few benefited from these government programs and the majority of local Mexican farmers saw no good in staying in a place where there was so little an opportunity. It was in their best interest to migrate elsewhere. So where would these workers turn to other than one of the most developed…

    • 957 Words
    • 4 Pages
    Better Essays
    Read More
  • Good Essays

    Consequences Of Indentured Servitude
    • 1032 Words
    • 5 Pages

    Consequences Of Indentured Servitude

    Negatives regarding indentured labourers included huge demographic shifts and its similarity to slavery, while positive consequences were found through the slight organization and civility for the labourers. An additional document, perhaps some statistics from the Mauritius government, would be helpful in confirming whether or not indentured servitude benefited their economics. Because the majority of people in Mauritius were Asian Indians (71%) following the indentured migrations, we can analyze whether this “over-migration” caused a positive or negative change. With the economic statistics from the government, we can truly analyze whether indentured servitude is historically…

    • 1032 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Latin America National Period Syllabus
    • 1446 Words
    • 10 Pages

    Latin America National Period Syllabus

    " from Cambridge History of Latin America Vol. 3. (1985) rd 5. Monday, February 23 Constructing New States Readings: ● John H. Coatsworth, “Obstacles to Economic Growth in Nineteenth-Century Mexico,” in …

    • 1446 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    International Trade and Finance Speech
    • 930 Words
    • 4 Pages

    International Trade and Finance Speech

    The American Foreign Trade, ISSN 0002-8282, 12/1928, Volume 18, Issue 4, pp. 706 - 713…

    • 930 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Slave Acculturation
    • 1329 Words
    • 6 Pages

    Slave Acculturation

    Burnard, T & Morgan, K. (2001) The dynamics of the slave market and slave purchasing patterns in Jamaica, 1655-1788. William and Mary Quarterly 58; 1: npa.…

    • 1329 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Mexican Revolution
    • 903 Words
    • 4 Pages

    Mexican Revolution

    Little had changed from the colony days by 1910. Foreigners still owned and operated most of the land, mines, factories and businesses using locals to be laborers making little money. By the day, Indians were losing more and more of their land, struggling to support even the simplest of lifestyles. In fact more than ninety percent of the total population was landless peasants and the unemployed. Under Diaz’s rule, Mexico was very welcoming to globalization, but gave little room for growth to the middle and peasant classes. Foreign investments were at an all-time high and the value of import export trade had risen by ten fold. (Chasteen, 2011)…

    • 903 Words
    • 4 Pages
    Good Essays
    Read More
  • Best Essays

    The Effects of Cultural Differences in International Business;
    • 2868 Words
    • 12 Pages

    The Effects of Cultural Differences in International Business;

    [ 5 ]. Chile. (2012). Index Mundi. Retrieved on Spetember 16th , 2011, from http://www.indexmundi.com/chile/exports.html…

    • 2868 Words
    • 12 Pages
    Best Essays
    Read More
  • Good Essays

    Closing Case: Barrett Farm Foods
    • 877 Words
    • 4 Pages

    Closing Case: Barrett Farm Foods

    A more systematic approach to exporting requires a considerable more thorough planning and investments. The firm should start by identifying the most qualified distributors and estimate market and sales potential; then the company should assess its resources and organize for exporting; another important process would be acquiring needed skills and competencies for the exporting process, such as a logistics department for international sales; and last but not least, they should adapt their products to foreign markets and their different needs.…

    • 877 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Role of Sez
    • 3146 Words
    • 13 Pages

    Role of Sez

    In this era of globalization, most developing countries are witnessing a shift away from an import substitution based development strategy to one based on export promotion policy. As part of their policy instruments to promote exports, many of these countries are vigorously promoting export processing zones (EPZs). EPZs are seen as a key instrument not only for promoting exports and earning foreign exchange but also for stimulating economic growth through additional investment, technology transfers, and employment generation. A majority of new zones have taken root…

    • 3146 Words
    • 13 Pages
    Powerful Essays
    Read More

Related Topics