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Export processing zones : a review in need of update

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  • Takayoshi Kusago
  • Tzannatos, Zafiris

Abstract

In the last three decades, the effects of export-oriented industrialization have called into question the once popular import substitution strategies. This change has been parallel to the development of Export Processing Zones (EPZs). Though initially found in a small number of countries, mainly ASEAN ones, such as Hong Kong (China), the Republic of Korea, and Singapore, EPZs are now found in more than 90 countries. The EPZ's role is typically seen as an instrument for expanding and modernizing the host economy through additional investment/capital formation, technology transfer, and employment generation. In addition to these direct effects, EPZs are expected to create ripple effects on the rest of the economy. The objective of this report is to update some issues and studies on export processing zones (EPZs). It first provides a brief overview of trends in EPZs and then discusses a series of issues such as investment and types of industry in EPZs (incentive scheme, foreign ownership, types of industry, and labor composition), technology transfer (backward linkages and skill formation), and workers in EPZs (wages, working conditions, and trade unions). In the last section, the report discusses lessons from different EPZ experiences and the future agenda.

Suggested Citation

  • Takayoshi Kusago & Tzannatos, Zafiris, 1998. "Export processing zones : a review in need of update," Social Protection Discussion Papers and Notes 20046, The World Bank.
    • Handle: RePEc:wbk:hdnspu:20046
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    3. Peter Glick & François Roubaud, 2004. "Export Processing Zone Expansion in an African Country: What are the Labor Market and Gender Impacts?," Working Papers DT/2004/15, DIAL (Développement, Institutions et Mondialisation), revised Dec 2004.
    4. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications - Books, The World Bank Group, number 15241.
    5. Ayçıl Yücer & Jean-Marc Siroën, 2017. "Trade Performance of Export Processing Zones," The World Economy, Wiley Blackwell, vol. 40(5), pages 1012-1038, May.
    6. Dong-Sook S. Gills, 2002. "Globalization of Production and Women in Asia," The ANNALS of the American Academy of Political and Social Science, , vol. 581(1), pages 106-120, May.
    7. Alexandre Lavissière & Jean-Paul Rodrigue, 2017. "Free ports: towards a network of trade gateways," Journal of Shipping and Trade, Springer, vol. 2(1), pages 1-17, December.
    8. Farrukh Nawaz Kayani & Saquib Yusaf Janjua & Babar Wasim, 2013. "Myths and Realities of Innovative China the Case of Haier Company," Business and Economic Research, Macrothink Institute, vol. 3(2), pages 107-114, December.
    9. Amara, Jomana, 2008. "Military industrialization and economic development: Jordan's defense industry," Review of Financial Economics, Elsevier, vol. 17(2), pages 130-145.
    10. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Working Papers id:1111, eSocialSciences.
    11. Zhao, Chuanmin & Qu, Xi, 2024. "Place-based policies, rural employment, and intra-household resources allocation: Evidence from China’s economic zones," Journal of Development Economics, Elsevier, vol. 167(C).
    12. Hysni Terziu & Besnik Terziu, 2015. "The Creation of Economic Zones as Instruments for the Attraction of Fdis and for the Promotion of Exports: Case of Kosovo," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 1, ejes_v1_i.
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    15. Robert J. Flanagan & Niny Khor, 2014. "Globalization and the Quality of Asian and Non-Asian Jobs," Asian Development Review, MIT Press, vol. 31(1), pages 163-185, March.
    16. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
    17. Aradhna Aggarwal, 2011. "PROMOTING AGGLOMERATION ECONOMIES AND INDUSTRIAL CLUSTERING THROUGH SEZs: EVIDENCE FROM INDIA," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 201-227.
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