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The economics of export processing zones revisited

Johansson, Helena LU (1994) In Development Policy Review 12(4). p.387-402
Abstract
The accumulation of empirical evidence that outward-oriented developing countries have generally performed better than inward-oriented ones in terms of growth, industrialisation, job creation and other macroeconomic indicators provides an essential lesson for both policy-makers and development economists worldwide. The acknowledged importance of trade and non-traditional exports for development

and rapid economic expansion in South-East Asia has inspired many developing countries to encourage export-oriented activities. Various instruments to promote non-traditional exports exist; this article will focus on the so-called export processing zones (EPZs).’

EPZs have long been a controversial issue among economists. The... (More)
The accumulation of empirical evidence that outward-oriented developing countries have generally performed better than inward-oriented ones in terms of growth, industrialisation, job creation and other macroeconomic indicators provides an essential lesson for both policy-makers and development economists worldwide. The acknowledged importance of trade and non-traditional exports for development

and rapid economic expansion in South-East Asia has inspired many developing countries to encourage export-oriented activities. Various instruments to promote non-traditional exports exist; this article will focus on the so-called export processing zones (EPZs).’

EPZs have long been a controversial issue among economists. The theoretical literature has most often argued that EPZs are welfare-reducing for the host country, but the extraordinary growth performance in, for example, China’s free trade areas, Mauritius’ EPZ and the Macao EPZ has stimulated a new interest and suggests that economic theory may lag behind in explaining the economic

growth possibilities connected with EPZs. Some of the existing theoretical approaches, such as the neo-classical, have effectively assumed away the reasons for the EPZs, while others, in turn, have overlooked possible beneficial effects from their establishment. One such important effect may be the curufytic role of EPZs for the host country. In distorted, low-income economies lacking industrial capability, EPZs may initiate export-led industrialisation by bringing

a critical mass of knowledge to the country. Furthermore, EPZs may also have a catalytic effect on some of the multinational corporations entering the zones, especially inexperienced mncs. Several of the mncs emanating from developing countries, for example, started their foreign production venture by investing in Ems. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to specialist publication or newspaper
publication status
published
subject
keywords
Export processing zones, spillovers, productivity growth
categories
Popular Science
in
Development Policy Review
volume
12
issue
4
pages
387 - 402
publisher
Wiley-Blackwell
external identifiers
  • scopus:0028591230
ISSN
0950-6764
DOI
10.1111/j.1467-7679.1994.tb00075.x
language
English
LU publication?
yes
id
ff3f6902-cc9e-4498-ad12-acf901135993 (old id 4253693)
date added to LUP
2014-01-24 10:58:30
date last changed
2017-07-09 03:30:31
@misc{ff3f6902-cc9e-4498-ad12-acf901135993,
  abstract     = {The accumulation of empirical evidence that outward-oriented developing countries have generally performed better than inward-oriented ones in terms of growth, industrialisation, job creation and other macroeconomic indicators provides an essential lesson for both policy-makers and development economists worldwide. The acknowledged importance of trade and non-traditional exports for development<br/><br>
and rapid economic expansion in South-East Asia has inspired many developing countries to encourage export-oriented activities. Various instruments to promote non-traditional exports exist; this article will focus on the so-called export processing zones (EPZs).’<br/><br>
EPZs have long been a controversial issue among economists. The theoretical literature has most often argued that EPZs are welfare-reducing for the host country, but the extraordinary growth performance in, for example, China’s free trade areas, Mauritius’ EPZ and the Macao EPZ has stimulated a new interest and suggests that economic theory may lag behind in explaining the economic<br/><br>
growth possibilities connected with EPZs. Some of the existing theoretical approaches, such as the neo-classical, have effectively assumed away the reasons for the EPZs, while others, in turn, have overlooked possible beneficial effects from their establishment. One such important effect may be the curufytic role of EPZs for the host country. In distorted, low-income economies lacking industrial capability, EPZs may initiate export-led industrialisation by bringing<br/><br>
a critical mass of knowledge to the country. Furthermore, EPZs may also have a catalytic effect on some of the multinational corporations entering the zones, especially inexperienced mncs. Several of the mncs emanating from developing countries, for example, started their foreign production venture by investing in Ems.},
  author       = {Johansson, Helena},
  issn         = {0950-6764},
  keyword      = {Export processing zones,spillovers,productivity growth},
  language     = {eng},
  number       = {4},
  pages        = {387--402},
  publisher    = {Wiley-Blackwell},
  series       = {Development Policy Review},
  title        = {The economics of export processing zones revisited},
  url          = {http://dx.doi.org/10.1111/j.1467-7679.1994.tb00075.x},
  volume       = {12},
  year         = {1994},
}