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Export Zones and Welfare: Another Look

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Author Info
Devereux, John
Chen, Lein Lein
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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Publisher 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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  1. Yasuyuki Sugiyama, 2007. "Export Processing Zones and Environmental Policy," Economics Bulletin, Economics Bulletin, vol. 6(20), pages 1-10. [Downloadable!]
  2. Wei GE, 1999. "The Dynamics Of The Exports-Processing Zone," UNCTAD Discussion Papers 144, United Nations Conference on Trade and Development. [Downloadable!]
  3. 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). [Downloadable!]
  4. Madani, Dorsati, 1999. "A review of the role and impact of export processing zones," Policy Research Working Paper Series 2238, The World Bank. [Downloadable!]
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This page was last updated on 2009-12-15.

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