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A Review of the Role and Impact of Export Processing Zones in World Trade : the Case of Mexico

Author

Listed:
  • Enrique Blanco de Armas

    (IDS - Institute of Development Studies [Brighton] - University of Sussex)

  • Mustapha Sadni Jallab

Abstract

While the number of export processing zones has risen to about 850 in 2000, their success in expanding employment and trade is mixed. The aim of this paper is to make a review of the role and the impact of EPZ in world trade and its likely impact on host countries' economies, especially in terms of foreign exchange earnings potential, FDI, technology transfer, and employment effects on the local and national economies. To this end we will be looking at Mexico where export processing zones are very developed. Mexico seems an appropriate case study to assess to which extent the predictions of economic theory are realised both because of the abundance and quality of available data and because of its proximity to the US, which makes it a very good example of the international division of labour. We will analyse how the parameters mentioned above (employment, foreign exchange earnings potential, FDI and technology) have evolved over the last 10-15 years and how much of the change can be traced back to the maquila industry. The main source of data is INEGI, the Instituto Nacional de Estadistica Geografica e Informatica of the Mexican Government.

Suggested Citation

  • Enrique Blanco de Armas & Mustapha Sadni Jallab, 2002. "A Review of the Role and Impact of Export Processing Zones in World Trade : the Case of Mexico," Post-Print halshs-00178444, HAL.
    • Handle: RePEc:hal:journl:halshs-00178444
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00178444
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    Citations

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    Cited by:

    1. Aradhna Aggarwal, 2005. "Performance of export processing zones: a comparative analysis of India, Sri Lanka and Bangladesh," Indian Council for Research on International Economic Relations, New Delhi Working Papers 155, Indian Council for Research on International Economic Relations, New Delhi, India.
    2. Quaicoe, Alexander & Aboagye, Anthony Q.Q. & Bokpin, Godfred A., 2017. "Assessing the impact of export processing zones on economic growth in Ghana," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1150-1163.
    3. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Working Papers id:1111, eSocialSciences.
    4. Reeg, Caroline, 2017. "Spatial development initiatives – potentials, challenges and policy lessons: with a specific outlook for inclusive agrocorridors in Sub-Sahara Africa," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 97, number 97, July.
    5. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Indian Council for Research on International Economic Relations, New Delhi Working Papers 194, Indian Council for Research on International Economic Relations, New Delhi, India.

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