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Regional development and rural-based export processing zones in developing countries

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  • Kazuhiro Tetsu
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    Abstract

    Many empirical, descriptive and theoretical studies have revealed various aspects of export processing zones (EPZs), but little attention has been given to the issue of the location of EPZs. In this paper, we provide a new theoretical approach to it: a general equilibrium model that consists of two regions and makes possible a comparison between the economic effects of an expansion of an EPZ in the rural region and that of multinational corporations (MNCs) in the urban region. The result is interesting: expanding the EPZ in the rural region may be a less desirable policy for a developing country than expanding the MNC sector in the urban region.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal International Economic Journal.

    Volume (Year): 20 (2006)
    Issue (Month): 3 ()
    Pages: 369-383

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    Handle: RePEc:taf:intecj:v:20:y:2006:i:3:p:369-383

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    Related research

    Keywords: Export processing zones; foreign capital inflow; backward linkages; regional development;

    References

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    1. Miyagiwa, Kaz F., 1986. "A reconsideration of the welfare economics of a free-trade zone," Journal of International Economics, Elsevier, vol. 21(3-4), pages 337-350, November.
    2. Din, Musleh-ud, 1994. "Export processing zones and backward linkages," Journal of Development Economics, Elsevier, vol. 43(2), pages 369-385, April.
    3. Rodriguez, Carlos Alfredo, 1976. "A note on the economics of the duty free zone," Journal of International Economics, Elsevier, vol. 6(4), pages 385-388, November.
    4. Basu, Arnab K., 1996. "Locational choice for free trade zones: a comment," Journal of Development Economics, Elsevier, vol. 50(2), pages 381-387, August.
    5. Chaudhuri, T. Datta & Adhikari, Smita, 1993. "Free trade zones with Harris-Todaro unemployment A note on Young-Miyagiwa," Journal of Development Economics, Elsevier, vol. 41(1), pages 157-162, June.
    6. Markusen, James R. & Melvin, James R. & Maskus, Keith E. & Kaempfer, William, 1995. "International trade: theory and evidence," MPRA Paper 21989, University Library of Munich, Germany.
    7. Young, Leslie & Miyagiwa, Kaz F., 1987. "Unemployment and the formation of duty-free zones," Journal of Development Economics, Elsevier, vol. 26(2), pages 397-405, August.
    8. Young, Leslie, 1987. "Intermediate goods and the formation of duty-free zones," Journal of Development Economics, Elsevier, vol. 25(2), pages 369-384, April.
    9. Warr, Peter G, 1989. "Export Processing Zones: The Economics of Enclave Manufacturing," World Bank Research Observer, World Bank Group, vol. 4(1), pages 65-88, January.
    10. Miyagiwa, Kaz, 1993. "The locational choice for free-trade zones : Rural versus urban options," Journal of Development Economics, Elsevier, vol. 40(1), pages 187-203, February.
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