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The impact of export processing zones on employment, wages and labour conditions in developing countries: systematic review

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  • Xavier Cirera
  • Rajith W. D. Lakshman

Abstract

One of the most common instruments of industrial policy is Export Processing Zones (EPZs). This paper shows the results of a systematic review of the impact of EPZs on employment, wages and labour conditions in developing countries. The results of synthesising 59 studies suggest that there is no robust evidence that the employment created in the zones is additional. Also, in most cases, EPZs pay higher wages and do not contribute to increase the gender wage gap. The results regarding labour conditions such as health and safety, unionisation or hours worked are mixed when comparing with firms outside the EPZ.

Suggested Citation

  • Xavier Cirera & Rajith W. D. Lakshman, 2017. "The impact of export processing zones on employment, wages and labour conditions in developing countries: systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(3), pages 344-360, July.
    • Handle: RePEc:taf:jdevef:v:9:y:2017:i:3:p:344-360
    DOI: 10.1080/19439342.2017.1309448
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    Cited by:

    1. Gertrude Dzifa Torvikey & Joseph Awetori Yaro & Joseph Kofi Teye, 2016. "Farm to Factory Gendered Employment: The Case of Blue Skies Outgrower Scheme in Ghana," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 5(1), pages 77-97, April.
    2. Susanne A. Frick & Andrés Rodríguez-Pose, 2023. "What draws investment to special economic zones? Lessons from developing countries," Regional Studies, Taylor & Francis Journals, vol. 57(11), pages 2136-2147, November.
    3. Zhiqi Chen & Afshan Dar‐Brodeur, 2020. "Trade and labour standards: Will there be a race to the bottom?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(3), pages 916-948, August.
    4. Aradhna Aggarwal & Ari Kokko, 2021. "SEZs and poverty reduction: evidence from Andhra Pradesh, India," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 17(8), pages 1793-1814, January.
    5. Grimm, Michael & Paffhausen, Anna Luisa, 2015. "Do interventions targeted at micro-entrepreneurs and small and medium-sized firms create jobs? A systematic review of the evidence for low and middle income countries," Labour Economics, Elsevier, vol. 32(C), pages 67-85.
    6. Otobe, Naoko., 2015. "Export-led development, employment and gender in the era of globalization," ILO Working Papers 994900563402676, International Labour Organization.
    7. Anthony Harris & Anthony D'Agostino & Sara Litke-Farzaneh & Beryl Seiler & Matt Sloan, "undated". "Morocco Land Productivity Project: Evaluation Design Report," Mathematica Policy Research Reports f3fc788501b64608b17e1cb23, Mathematica Policy Research.
    8. Rajneesh Narula & James X. Zhan, . "Using special economic zones to facilitate development: policy implications," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    9. John Rand & Finn Tarp & Neda Trifković & Helge Zille, 2019. "Industrial agglomeration in Myanmar," WIDER Working Paper Series wp-2019-3, World Institute for Development Economic Research (UNU-WIDER).

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