IDEAS home Printed from https://ideas.repec.org/a/zbw/ifweej/202019.html
   My bibliography  Save this article

Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone

Author

Listed:
  • Teixeira, Louisiana Cavalcanti

Abstract

The creation of the Manaus Free Trade Zone had a development purpose in the Brazilian political, economic and social scenario between 1960 and 1970. This industrial pole was an important device in achieving the desired development, populating a region considered deserted and exposed to external threats at that time. It has guaranteed the improvement on labor standards and social conditions in the Manaus' district and has become the main driving force behind regional employment, higher salaries and growth over the past decades. Using the residuals and the stochastic frontier techniques to estimate the labor and social performances of the Manaus Free Trade Zone, the analysis confirms that the implementation of the special economic zone collaborated to labor and social efficiency in the area - compared to other important industrial Brazilian municipalities - due to the rigid checks conducted by SUFRAMA and the strict respect of labor standards applied in the MFTZ. Nevertheless, economic linkages in the region are still weak and positive spillovers from Manaus to its surroundings were probably inexistent.

Suggested Citation

  • Teixeira, Louisiana Cavalcanti, 2020. "Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 14, pages 1-41.
    • Handle: RePEc:zbw:ifweej:202019
    DOI: 10.5018/economics-ejournal.ja.2020-19
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.5018/economics-ejournal.ja.2020-19
    Download Restriction: no
    File URL: https://www.econstor.eu/bitstream/10419/220001/1/1701926253.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.5018/economics-ejournal.ja.2020-19?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marta Castilho & Marta Menendez & Aude Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone ?," Working Papers DT/2015/18, DIAL (Développement, Institutions et Mondialisation).
    2. Jean-Marc Siroën & Ayçil Yücer, 2014. "Trade Performance of Free Trade Zones," Working Papers DT/2014/09, DIAL (Développement, Institutions et Mondialisation).
    3. Cling, Jean-Pierre & Razafindrakoto, Mireille & Roubaud, Francois, 2005. "Export processing zones in Madagascar: a success story under threat?," World Development, Elsevier, vol. 33(5), pages 785-803, May.
    4. repec:ilo:ilowps:398959 is not listed on IDEAS
    5. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Working Papers id:1111, eSocialSciences.
    6. Aradhna Aggarwal, 2007. "Impact of Special Economic Zones on Employment, Poverty and Human Development," Indian Council for Research on International Economic Relations, New Delhi Working Papers 194, Indian Council for Research on International Economic Relations, New Delhi, India.
    7. Singa Boyenge, Jean-Pierre., 2007. "ILO database on export processing zones (Revised)," ILO Working Papers 993989593402676, International Labour Organization.
    8. Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-444, June.
    9. Matias Busso & Jesse Gregory & Patrick Kline, 2013. "Assessing the Incidence and Efficiency of a Prominent Place Based Policy," American Economic Review, American Economic Association, vol. 103(2), pages 897-947, April.
    10. Aggarwal, Aradhna, 2012. "Social and Economic Impact of SEZs in India," OUP Catalogue, Oxford University Press, number 9780198077275.
    11. Ham, John C. & Swenson, Charles & İmrohoroğlu, Ayşe & Song, Heonjae, 2011. "Government programs can improve local labor markets: Evidence from State Enterprise Zones, Federal Empowerment Zones and Federal Enterprise Community," Journal of Public Economics, Elsevier, vol. 95(7), pages 779-797.
    12. Farole, Thomas, 2011. "Special Economic Zones: What Have We Learned?," World Bank - Economic Premise, The World Bank, issue 64, pages 1-5, September.
    13. Richard Baldwin, 2013. "Trade and Industrialization after Globalization's Second Unbundling: How Building and Joining a Supply Chain Are Different and Why It Matters," NBER Chapters, in: Globalization in an Age of Crisis: Multilateral Economic Cooperation in the Twenty-First Century, pages 165-212, National Bureau of Economic Research, Inc.
    14. Defever, Fabrice & Riaño, Alejandro, 2017. "Subsidies with export share requirements in China," Journal of Development Economics, Elsevier, vol. 126(C), pages 33-51.
    15. Jean-Marc Siroën, 2012. "Core labour standards and exports," Working Papers DT/2012/18, DIAL (Développement, Institutions et Mondialisation).
    16. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
    17. Thomas Farole & Gokhan Akinci, 2011. "Special Economic Zones : Progress, Emerging Challenges, and Future Directions," World Bank Publications - Books, The World Bank Group, number 2341.
    18. repec:dau:papers:123456789/10660 is not listed on IDEAS
    19. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Penghao Ye & Huarong Zhang & Siyi Ma & Fang Yang & Yanan Li, 2022. "A Knowledge Map Study of an Application of a Smart Land Planning Free-Trade Zone and China’s Contribution," Land, MDPI, vol. 11(6), pages 1-21, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louisiana Cavalcanti Teixeira, 2020. "Labor standards and social conditions in free trade zones: the case of the Manaus free trade zone," Post-Print hal-02997102, HAL.
    2. Cavalcanti Teixeira, Louisiana, 2019. "Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone," Economics Discussion Papers 2019-69, Kiel Institute for the World Economy (IfW Kiel).
    3. Marta Castilho & Marta Menéndez & Aude A. Sztulman, 2015. "Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone?," Working Papers halshs-01245394, HAL.
    4. Görg, Holger & Mulyukova, Alina, 2022. "Place-Based Policies and Agglomeration Economies: Firm-Level Evidence from Special Economic Zones in India," IZA Discussion Papers 15123, Institute of Labor Economics (IZA).
    5. Görg, Holger & Mulyukova, Alina, 2024. "Place-based policies and firm performance: Evidence from Special Economic Zones in India," European Economic Review, Elsevier, vol. 165(C).
    6. Alkon, Meir, 2018. "Do special economic zones induce developmental spillovers? Evidence from India’s states," World Development, Elsevier, vol. 107(C), pages 396-409.
    7. Moberg, Lotta, 2015. "The political economy of special economic zones," Journal of Institutional Economics, Cambridge University Press, vol. 11(1), pages 167-190, March.
    8. Bernini, Cristina & Cerqua, Augusto & Pellegrini, Guido, 2017. "Public subsidies, TFP and efficiency: A tale of complex relationships," Research Policy, Elsevier, vol. 46(4), pages 751-767.
    9. Possebom, Vitor Augusto, 2017. "Free Trade Zone of Manaus: An Impact Evaluation using the Synthetic Control Method," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 71(2), July.
    10. 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.
    11. World Bank, 2010. "Mauritania - Policy Options to Enhance Private Sector Development : Country Economic Memorandum," World Bank Publications - Reports 2858, The World Bank Group.
    12. 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.
    13. Khan, Karim, 2019. "Special Economic Zones (SEZs) and Prospects for the Domestic Economy of Pakistan," MPRA Paper 103337, University Library of Munich, Germany.
    14. Kartik Misra, 2019. "Accumulation by Dispossession and Electoral Democracies : An Analysis of Land Acquisition for Special Economic Zones in India," UMASS Amherst Economics Working Papers 2019-16, University of Massachusetts Amherst, Department of Economics.
    15. Shaikh Mostak Ahammad & Badrun Nahar & Sha. A. Ahammed Khan, 2019. "A comparative Analysis on Wage Rate & Living Standard of Workers between Ventura Leatherware Mfy (BD) Ltd. & Mazen (BD) Industries Ltd," International Journal of Science and Business, IJSAB International, vol. 3(3), pages 1-15.
    16. Reeg, Caroline, 2017. "Spatial development initiatives – potentials, challenges and policy lessons: with a specific outlook for inclusive agrocorridors in Sub-Sahara Africa," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 97, number 97, July.
    17. 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.
    18. Ayesha KHAN & Hans-Dietrich HAASIS, 2020. "Spatially Induced Effects And Sustainability For Special Economic Zones: Implications For Zones In Pakistan Under China Pakistan Economic Corridor," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 179-194, June.
    19. Zhao, Chuanmin & Qu, Xi, 2024. "Place-based policies, rural employment, and intra-household resources allocation: Evidence from China’s economic zones," Journal of Development Economics, Elsevier, vol. 167(C).
    20. Görg, Holger & Mulyukova, Alina, 2024. "Place-based policies and firm performance: Evidence from Special Economic Zones in India," Open Access Publications from Kiel Institute for the World Economy 302102, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    free trade zone; Manaus; employment; labor standards; social progress;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifweej:202019. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.