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Export Zones and Welfare: Another Look

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  • Devereux, John
  • Chen, Lein Lein
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    Abstract

    In this paper, the authors show that the welfare effects of an export promotion zone can be divided into a factor terms-of-trade effect and a volume-of-trade effect. The first effect raises welfare, whereas the second is uncertain. To date, however, the literature has ignored the factor terms-of-trade effect, thereby creating a bias against export zones. In addition, the authors demonstrate that zones increase welfare for trade regimes that rely on quantitative restrictions. Copyright 1995 by Royal Economic Society.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Economic Papers.

    Volume (Year): 47 (1995)
    Issue (Month): 4 (October)
    Pages: 704-13

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    Handle: RePEc:oup:oxecpp:v:47:y:1995:i:4:p:704-13

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    Cited by:
    1. Yasuyuki Sugiyama, 2006. "Export Processing Zones and Environmental Policy," Discussion Papers in Economics and Business 06-22, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    2. Chaudhuri, Sarbajit & Yabuuchi, Shigemi, 2010. "Formation of special economic zone, liberalized FDI policy and agricultural productivity," International Review of Economics & Finance, Elsevier, vol. 19(4), pages 779-788, October.
    3. Devereux, John & Roberts, Bryan, 1997. "Direct Foreign Investment and Welfare in the Transforming Economies: The Case of Central Asia," Journal of Comparative Economics, Elsevier, vol. 24(3), pages 297-312, June.
    4. Johansson, Helena & Nilsson, Lars, 1997. "Export processing zones as catalysts," World Development, Elsevier, vol. 25(12), pages 2115-2128, December.
    5. Madani, Dorsati, 1999. "A review of the role and impact of export processing zones," Policy Research Working Paper Series 2238, The World Bank.
    6. repec:ebl:ecbull:v:6:y:2007:i:20:p:1-10 is not listed on IDEAS
    7. Wei GE, 1999. "The Dynamics Of The Exports-Processing Zone," UNCTAD Discussion Papers 144, United Nations Conference on Trade and Development.

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