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The Impact of Special Economic Zones on Exporting Behavior

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  • Ronald B. Davies
  • Arman Mazhikeyev

Abstract

Using firm level data from Africa and Asia, we estimate the impact of being in a special economic zone (SEZ) on a firm’s probability of exporting, export intensity, and value of exports. At the extensive margin, we find that SEZ firms in open economies are 25% more likely to export than their non-SEZ counterparts, with a large negative effect in closed economies. At the intensive margin, we find that SEZs increase the value of exports, but only in countries with barriers to imports where the estimate increase is 3.6%. Thus, the estimated effect of introducing an SEZ can be meaningful, but is heavily contingent on the local economic environment.

Suggested Citation

  • Ronald B. Davies & Arman Mazhikeyev, 2015. "The Impact of Special Economic Zones on Exporting Behavior," Working Papers 201528, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:201528
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    File URL: http://hdl.handle.net/10197/7226
    File Function: First version, 2015
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    References listed on IDEAS

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    Cited by:

    1. Fabrice Defever & José-Daniel Reyes & Alejandro Riaño & Miguel Eduardo Sánchez-Martín, 2017. "Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic," CESifo Working Paper Series 6791, CESifo Group Munich.
    2. Defever, F. & Reyes, J-D., 2016. "Does the Elimination of Export Requirements in Special Economic Zones A ect Export Performance? Evidence from the Dominican Republic," Working Papers 16/04, Department of Economics, City University London.
    3. Igor Bagayev & Ronald B. Davies, 2017. "The Impact of Protection on Observed Productivity Distributions," Working Papers 201705, School of Economics, University College Dublin.

    More about this item

    Keywords

    Exporting; Trade barriers; Special economic zones;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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