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The Dynamics Of The Exports-Processing Zone

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  • Wei GE

Abstract

Using a monopolistic pricing model as benchmark, this paper develops a dynamic framework within which issues concerning the role of export-processing zones in promoting economic openness and transition is assessed. Technological learning and adaptation contribute profoundly to economic development in LDCs; multinational activities tend to generate an externality that facilitates the process of technology transfer and learning. The model signifies these critical factors. The study suggests, among other things, that the concept of export-processing zones may serve as an effective policy means, when implemented properly, in achieving greater economic openness and growth. In this gradual evolving development process, countries that operate export-processing zones may follow a different transitional path and sequence from the one that is often cited in literature.

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  • Wei GE, 1999. "The Dynamics Of The Exports-Processing Zone," UNCTAD Discussion Papers 144, United Nations Conference on Trade and Development.
    • Handle: RePEc:unc:dispap:144
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    References listed on IDEAS

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