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Locational Choice For Export Processing Zones In Developing Countries

Author

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  • KAZUHIRO TETSU

    (Department of Economics, Shizuoka University, 836 Ohya, Shizuoka-shi, 422-8529, Japan)

Abstract

Little attention has been given to the issue of the locational choice for EPZs, from a theoretical point of view, except by Miyagiwa (1993). In this paper, using a three-sector general equilibrium model with unemployment, we will examine theoretically the issue of where to locate EPZs. This model gives policy makers in developing countries four policy options. An interesting result is as follows: it reveals that attracting foreign firms which are more labor-intensive (capital-intensive) than the rural domestic firms into the rural-based EPZ is the best (worst) policy for developing countries.

Suggested Citation

  • Kazuhiro Tetsu, 2004. "Locational Choice For Export Processing Zones In Developing Countries," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 49(02), pages 179-193.
    • Handle: RePEc:wsi:serxxx:v:49:y:2004:i:02:n:s0217590804000871
    DOI: 10.1142/S0217590804000871
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