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Export Zones and Welfare: Another Look

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  • 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.

Suggested Citation

  • Devereux, John & Chen, Lein Lein, 1995. "Export Zones and Welfare: Another Look," Oxford Economic Papers, Oxford University Press, vol. 47(4), pages 704-713, October.
  • Handle: RePEc:oup:oxecpp:v:47:y:1995:i:4:p:704-13
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    Cited by:

    1. Wei GE, 1999. "The Dynamics Of The Exports-Processing Zone," UNCTAD Discussion Papers 144, United Nations Conference on Trade and Development.
    2. repec:ebl:ecbull:v:6:y:2007:i:20:p:1-10 is not listed on IDEAS
    3. repec:eee:riibaf:v:42:y:2017:i:c:p:1150-1163 is not listed on IDEAS
    4. Defever, F. & Reyes, J-D. & Riaño, A. & Sanchez-Martin, M. E., 2017. "Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic," Working Papers 17/04, Department of Economics, City University London.
    5. Defever, F. & Reyes, J-D., 2016. "Does the Elimination of Export Requirements in Special Economic Zones A ect Export Performance? Evidence from the Dominican Republic," Working Papers 16/04, Department of Economics, City University London.
    6. 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).
    7. Madani, Dorsati, 1999. "A review of the role and impact of export processing zones," Policy Research Working Paper Series 2238, The World Bank.
    8. Zheng, Guo & Barbieri, Elisa & Di Tommaso, Marco R. & Zhang, Lei, 2016. "Development zones and local economic growth: zooming in on the Chinese case," China Economic Review, Elsevier, vol. 38(C), pages 238-249.
    9. Johansson, Helena & Nilsson, Lars, 1997. "Export processing zones as catalysts," World Development, Elsevier, vol. 25(12), pages 2115-2128, December.
    10. Ronald B. Davies & Arman Mazhikeyev, 2015. "The Impact of Special Economic Zones on Exporting Behavior," Working Papers 201528, School of Economics, University College Dublin.
    11. 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.
    12. 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.

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