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Regional development and rural-based export processing zones in developing countries

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  • Kazuhiro Tetsu

Abstract

Many empirical, descriptive and theoretical studies have revealed various aspects of export processing zones (EPZs), but little attention has been given to the issue of the location of EPZs. In this paper, we provide a new theoretical approach to it: a general equilibrium model that consists of two regions and makes possible a comparison between the economic effects of an expansion of an EPZ in the rural region and that of multinational corporations (MNCs) in the urban region. The result is interesting: expanding the EPZ in the rural region may be a less desirable policy for a developing country than expanding the MNC sector in the urban region.

Suggested Citation

  • Kazuhiro Tetsu, 2006. "Regional development and rural-based export processing zones in developing countries," International Economic Journal, Taylor & Francis Journals, vol. 20(3), pages 369-383.
    • Handle: RePEc:taf:intecj:v:20:y:2006:i:3:p:369-383
    DOI: 10.1080/10168730600879448
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    References listed on IDEAS

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    Cited by:

    1. Hassan Sallahuddin, 2018. "Fdi Oriented Exports And Role Of Free Industrial Zones In Malaysia," Post-Print hal-03455842, HAL.

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