Does the Elimination of Export Requirements in Special Economic Zones affect Export Performance? Evidence from the Dominican Republic
Special economic zones, one of the most important instruments of industrial policy in developing countries, often feature export share requirements. That is, firms located in these zones are obliged to export more than a certain stated share of their output to enjoy the wide array of incentives available there, a practice prohibited by the World Trade Organization. This paper exploits the staggered removal of export requirements across products and over time in the special economic zones of the Dominican Republic to evaluate whether the importance of exports originating from the zones was affected by the elimination of export requirements. The findings show that entry increased among firms in special economic zones, while the average value of export transactions fell for existing exporters following the reforms. At the same time, continuous exporters were unaffected by the policy change, possibly because these firms were not constrained by the export requirement. Overall, special economic zones became more important with respect to the number of exporters based there but not in terms of the value of exports. The findings suggest that the elimination of performance requirements made it more attractive for firms to be based in special economic zones.
|Date of creation:||2016|
|Contact details of provider:|| Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD|
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/gep/index.aspx
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Zheng Wang & Zhihong Yu, "undated". "Trading Partners, Traded Products, and Firm Performances: Evidence from China’s Exporter-Importers," Discussion Papers 11/13, University of Nottingham, GEP.
- Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016.
"Economic reforms and industrial policy in a panel of Chinese cities,"
Journal of Economic Growth,
Springer, vol. 21(4), pages 305-349, December.
- Simon Alder & Lin Shao & Fabrizio Zilibotti, 2013. "Economic reforms and industrial policy in a panel of Chinese cities," UBSCENTER - Working Papers 005, UBS International Center of Economics in Society - Department of Economics - University of Zurich.
- Alder, Simon & Shao, Lin & Zilibotti, Fabrizio, 2013. "Economic Reforms and Industrial Policy in a Panel of Chinese Cities," CEPR Discussion Papers 9748, C.E.P.R. Discussion Papers.
- Benedikt Heid & Mario Larch & Alejandro Riaño, 2013. "The Rise of the Maquiladoras: A M ixed Blessing," Review of Development Economics, Wiley Blackwell, vol. 17(2), pages 252-267, 05.
- repec:idb:brikps:16458 is not listed on IDEAS
- Sanchez-Ancochea, Diego, 2006. "Development trajectories and new comparative advantages: Costa Rica and the Dominican Republic under Globalization," World Development, Elsevier, vol. 34(6), pages 996-1015, June.
- Kaplinsky, Raphael, 1993. "Export Processing Zones in the Dominican Republic: Transforming manufactures into commodities," World Development, Elsevier, vol. 21(11), pages 1851-1865, November.
- Willmore, Larry, 1995. "Export processing zones in the Dominican Republic: A comment on Kaplinsky," World Development, Elsevier, vol. 23(3), pages 529-535, March.
- Hamada, Koichi, 1974. "An economic analysis of the duty-free zone," Journal of International Economics, Elsevier, vol. 4(3), pages 225-241, August.
- Carl Davidson & Steven J. Matusz & Mordechai E. Kreinin, 1985. "Analysis of Performance Standards for Direct Foreign Investments," Canadian Journal of Economics, Canadian Economics Association, vol. 18(4), pages 876-890, November.
- Elena Ianchovichina, 2007. "Are duty drawbacks on exports worth the hassle?," Canadian Journal of Economics, Canadian Economics Association, vol. 40(3), pages 881-913, August.
- Elena IANCHOVICHINA, "undated". "Duty Drawbacks, Competitiveness and Growth: Should China Reform its Duty Drawback System?," EcoMod2004 330600069, EcoMod.
- Ianchovichina, Elena, 2005. "Duty drawbacks, competitiveness, and growth - are duty drawbacks worth the hassle?," Policy Research Working Paper Series 3498, The World Bank.
- Fernandes, Ana P. & Tang, Heiwai, 2012. "Determinants of vertical integration in export processing: Theory and evidence from China," Journal of Development Economics, Elsevier, vol. 99(2), pages 396-414.
- Chi-Chur Chao & Eden S H Yu, 2014. "Trade-Related Investment Measures:Theory and Applications," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number p946, March.
- Thomas Farole & Gokhan Akinci, 2011. "Special Economic Zones : Progress, Emerging Challenges, and Future Directions," World Bank Publications, The World Bank, number 2341.
- Christian Volpe Martincus, 2010. "Odyssey in International Markets: An Assessment of the Effectiveness of Export Promotion in Latin America and the Caribbean," IDB Publications (Books), Inter-American Development Bank, number 16458, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:not:notgep:16/18. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hilary Hughes)
If references are entirely missing, you can add them using this form.