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A Review of the Role and Impact of Export Processing Zones in World Trade : the Case of Mexico

Listed author(s):
  • Enrique Blanco de Armas

    (IDS - Institute of Development Studies - Institute of Development Studies)

  • Mustapha Sadni Jallab


While the number of export processing zones has risen to about 850 in 2000, their success in expanding employment and trade is mixed. The aim of this paper is to make a review of the role and the impact of EPZ in world trade and its likely impact on host countries' economies, especially in terms of foreign exchange earnings potential, FDI, technology transfer, and employment effects on the local and national economies. To this end we will be looking at Mexico where export processing zones are very developed. Mexico seems an appropriate case study to assess to which extent the predictions of economic theory are realised both because of the abundance and quality of available data and because of its proximity to the US, which makes it a very good example of the international division of labour. We will analyse how the parameters mentioned above (employment, foreign exchange earnings potential, FDI and technology) have evolved over the last 10-15 years and how much of the change can be traced back to the maquila industry. The main source of data is INEGI, the Instituto Nacional de Estadistica Geografica e Informatica of the Mexican Government.

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Paper provided by HAL in its series Post-Print with number halshs-00178444.

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Date of creation: 2002
Publication status: Published in Working Paper du GATE 2002-07. 2002
Handle: RePEc:hal:journl:halshs-00178444
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