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Export Processing Zones in Sri Lanka: A Cost-Benefit Appraisal



    (Department of Economics, University of Peradeniya, Sri Lanka)


    (DPPC, University of Bradford, UK)


Like many countries, Sri Lanka has used Export Processing Zones as a means of promoting manufactured exports. This article uses a cost-benefit approach to estimate the returns to the national economy from the main zones. Overall, the zones are found to be economically efficient with an economic rate of return of 23 per cent. The zones are dominated by textile and clothing firms, however, and returns in other sectors are considerably lower. Unlike zones elsewhere, profits to local investors are a significant part of national benefits. © 1997 John Wiley & Sons, Ltd.

Suggested Citation

  • K. Jayanthakumaran & John Weiss, 1997. "Export Processing Zones in Sri Lanka: A Cost-Benefit Appraisal," Journal of International Development, John Wiley & Sons, Ltd., vol. 9(5), pages 727-737.
  • Handle: RePEc:wly:jintdv:v:9:y:1997:i:5:p:727-737 DOI: 10.1002/(SICI)1099-1328(199707)9:5<727::AID-JID272>3.0.CO;2-T

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    References listed on IDEAS

    1. 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.
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    Cited by:

    1. Morris, Sebastian, 2007. "Role of Trade and Macroeconomic Policies in the Performance of Special Economic Zones (SEZs)," IIMA Working Papers WP2007-09-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Jayanthakumaran, Kankesu, 2002. "An Overview of Export Processing Zones: Selected Asian Countries," Economics Working Papers wp02-03, School of Economics, University of Wollongong, NSW, Australia.
    3. Sargent, John & Matthews, Linda, 2009. "China versus Mexico in the Global EPZ Industry: Maquiladoras, FDI Quality, and Plant Mortality," World Development, Elsevier, vol. 37(6), pages 1069-1082, June.

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