Publication: Export Processing Zones
Date
1998-12
ISSN
Published
1998-12
Author(s)
Madani, Dorsati
Abstract
This note focuses on export processing
zones as potential, useful tools in export promotion, and,
outlines the general features, and objectives of these
zones, highlighting country experiences, and offering policy
recommendations for establishing them. It identifies three
main goals of export processing zones: provision of foreign
exchange earnings; job creation, and income generation; and,
attracts foreign direct investments, which enhances
knowledge, and technology transfer. While common features
are generally shared, export zones are differentiated by
public, or private ownership, or management, and, by
dependent qualities of management, facilities, and services
they provide, namely, defined as "high-end" or
"low-end". Recommendations suggest that export
processing zones is one of a number of tools, used to
off-set anti-export bias, in distorted economies. But just
like other export promotion tools, export zones are a
second-best policy choice. Zones can play a dynamic role in
the development of a country, provided they are adequately
managed, and integrated within national reform, and
liberalization programs. However, zones should not be
established in liberal, low-protection economies, due to the
potential of lower than expected foreign direct investments,
as a result of unattractive laws, and regulations, and
because they may distort trade instruments, introducing
discretionary elements in policy framework.
Citation
“Madani, Dorsati. 1998. Export Processing Zones. PREM Notes; No. 11. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/aa6a0452-bb9b-5d03-9894-04657548830b License: CC BY 3.0 IGO.”