Export Processing Zones

This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them. It identifies three main goals of export proces...

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description This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them. It identifies three main goals of export processing zones: provision of foreign exchange earnings; job creation, and income generation; and, attracts foreign direct investments, which enhances knowledge, and technology transfer. While common features are generally shared, export zones are differentiated by public, or private ownership, or management, and, by dependent qualities of management, facilities, and services they provide, namely, defined as "high-end" or "low-end". Recommendations suggest that export processing zones is one of a number of tools, used to off-set anti-export bias, in distorted economies. But just like other export promotion tools, export zones are a second-best policy choice. Zones can play a dynamic role in the development of a country, provided they are adequately managed, and integrated within national reform, and liberalization programs. However, zones should not be established in liberal, low-protection economies, due to the potential of lower than expected foreign direct investments, as a result of unattractive laws, and regulations, and because they may distort trade instruments, introducing discretionary elements in policy framework.
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It identifies three main goals of export processing zones: provision of foreign exchange earnings; job creation, and income generation; and, attracts foreign direct investments, which enhances knowledge, and technology transfer. While common features are generally shared, export zones are differentiated by public, or private ownership, or management, and, by dependent qualities of management, facilities, and services they provide, namely, defined as "high-end" or "low-end". Recommendations suggest that export processing zones is one of a number of tools, used to off-set anti-export bias, in distorted economies. But just like other export promotion tools, export zones are a second-best policy choice. Zones can play a dynamic role in the development of a country, provided they are adequately managed, and integrated within national reform, and liberalization programs. However, zones should not be established in liberal, low-protection economies, due to the potential of lower than expected foreign direct investments, as a result of unattractive laws, and regulations, and because they may distort trade instruments, introducing discretionary elements in policy framework.</description><language>eng</language><publisher>World Bank, Washington, DC</publisher><subject>AUTONOMY ; BACKWARD LINKAGES ; CAPITAL GOODS ; COMPETITIVENESS ; DEVELOPMENT ECONOMICS ; DOMESTIC FIRMS ; DOMESTIC MARKET ; DOMESTIC SALES ; ECONOMIC POLICY ; EMPLOYMENT ; ENVIRONMENTAL IMPACT ; ENVIRONMENTAL IMPACTS ; ENVIRONMENTAL POLLUTION ; EXPORT ; EXPORT BIAS ; EXPORT CATALYSTS ; EXPORT EARNINGS ; EXPORT PROCESSING ; EXPORT PROCESSING FIRMS ; EXPORT PROCESSING ZONE ; EXPORT PROCESSING ZONES ; EXPORT PRODUCTION ; EXPORT PROMOTION ; EXPORT PROMOTION TOOLS ; EXPORT STRATEGIES ; EXPORTS ; FISCAL POLICIES ; FOREIGN DIRECT INVESTMENT ; FOREIGN DIRECT INVESTMENTS ; FOREIGN EXCHANGE ; FOREIGN EXCHANGE ALLOCATIONS ; FOREIGN EXCHANGE EARNINGS ; FREE TRADE ; FREE TRADE CONDITIONS ; FREE TRADE ZONES ; GROSS EXPORTS ; HUMAN CAPITAL ; IMPORTING COUNTRIES ; IMPORTS ; INCOME ; INCOME GENERATION ; INCOME TAXES ; INDIRECT TAXATION ; INDUSTRIAL BASE ; INDUSTRIAL ESTATE ; INDUSTRIAL INFRASTRUCTURE ; INDUSTRIAL REFUSE ; INDUSTRIALIZATION ; INSURANCE ; INTERMEDIATE INPUTS ; INTERNATIONAL TRADE ; INVESTMENT APPLICATIONS ; JOB CREATION ; KNOWLEDGE BASED SYSTEMS ; LABOR LAWS ; LEGAL &amp; REGULATORY FRAMEWORK ; LOCAL EMPLOYEES ; LOCAL INPUTS ; MANAGEMENT OPERATIONS ; MANAGERIAL METHODS ; MARKET RATES ; MARKET SIZE ; MARKETING SKILLS ; NATIONAL ECONOMY ; NATIONAL PRACTICES ; NATIONAL REFORM ; NET EXPORTS ; NONTRADITIONAL EMPLOYMENT ; NONTRADITIONAL EXPORTS ; OPPORTUNITY COST ; POLICY FRAMEWORK ; POLLUTION ; PREFERENTIAL TRADE ; PREFERENTIAL TRADE ARRANGEMENTS ; PRESENT VALUE ; PRIVATE OWNERSHIP ; PRIVATE PROPERTY ; PRODUCTIVITY ; PUBLIC OWNERSHIP ; REFORM POLICY ; RULES OF ORIGIN ; TAX CONCESSIONS ; TAXATION ; TECHNOLOGY TRANSFER ; TRADE LIBERALIZATION ; TRADE POLICY ; TRADE POLICY REFORM ; TRADE REFORMS ; WAGES ; WORLD TRADE ; WORLD TRADE ORGANIZATION FREE EXPORT ZONES</subject><creationdate>1998</creationdate><rights>CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank</rights><oa>free_for_read</oa><woscitedreferencessubscribed>false</woscitedreferencessubscribed><relation>PREM Notes</relation></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>307,776,780,783,18962</link.rule.ids><linktorsrc>$$Uhttps://hdl.handle.net/10986/11519$$EView_record_in_World_Bank$$FView_record_in_$$GWorld_Bank$$Hfree_for_read</linktorsrc></links><search><creatorcontrib>Madani, Dorsati</creatorcontrib><title>Export Processing Zones</title><description>This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them. It identifies three main goals of export processing zones: provision of foreign exchange earnings; job creation, and income generation; and, attracts foreign direct investments, which enhances knowledge, and technology transfer. While common features are generally shared, export zones are differentiated by public, or private ownership, or management, and, by dependent qualities of management, facilities, and services they provide, namely, defined as "high-end" or "low-end". Recommendations suggest that export processing zones is one of a number of tools, used to off-set anti-export bias, in distorted economies. But just like other export promotion tools, export zones are a second-best policy choice. Zones can play a dynamic role in the development of a country, provided they are adequately managed, and integrated within national reform, and liberalization programs. However, zones should not be established in liberal, low-protection economies, due to the potential of lower than expected foreign direct investments, as a result of unattractive laws, and regulations, and because they may distort trade instruments, introducing discretionary elements in policy framework.</description><subject>AUTONOMY</subject><subject>BACKWARD LINKAGES</subject><subject>CAPITAL GOODS</subject><subject>COMPETITIVENESS</subject><subject>DEVELOPMENT ECONOMICS</subject><subject>DOMESTIC FIRMS</subject><subject>DOMESTIC MARKET</subject><subject>DOMESTIC SALES</subject><subject>ECONOMIC POLICY</subject><subject>EMPLOYMENT</subject><subject>ENVIRONMENTAL IMPACT</subject><subject>ENVIRONMENTAL IMPACTS</subject><subject>ENVIRONMENTAL POLLUTION</subject><subject>EXPORT</subject><subject>EXPORT BIAS</subject><subject>EXPORT CATALYSTS</subject><subject>EXPORT EARNINGS</subject><subject>EXPORT PROCESSING</subject><subject>EXPORT PROCESSING FIRMS</subject><subject>EXPORT PROCESSING ZONE</subject><subject>EXPORT PROCESSING ZONES</subject><subject>EXPORT PRODUCTION</subject><subject>EXPORT PROMOTION</subject><subject>EXPORT PROMOTION TOOLS</subject><subject>EXPORT STRATEGIES</subject><subject>EXPORTS</subject><subject>FISCAL POLICIES</subject><subject>FOREIGN DIRECT INVESTMENT</subject><subject>FOREIGN DIRECT INVESTMENTS</subject><subject>FOREIGN EXCHANGE</subject><subject>FOREIGN EXCHANGE ALLOCATIONS</subject><subject>FOREIGN EXCHANGE EARNINGS</subject><subject>FREE TRADE</subject><subject>FREE TRADE CONDITIONS</subject><subject>FREE TRADE ZONES</subject><subject>GROSS EXPORTS</subject><subject>HUMAN CAPITAL</subject><subject>IMPORTING COUNTRIES</subject><subject>IMPORTS</subject><subject>INCOME</subject><subject>INCOME GENERATION</subject><subject>INCOME TAXES</subject><subject>INDIRECT TAXATION</subject><subject>INDUSTRIAL BASE</subject><subject>INDUSTRIAL ESTATE</subject><subject>INDUSTRIAL INFRASTRUCTURE</subject><subject>INDUSTRIAL REFUSE</subject><subject>INDUSTRIALIZATION</subject><subject>INSURANCE</subject><subject>INTERMEDIATE INPUTS</subject><subject>INTERNATIONAL TRADE</subject><subject>INVESTMENT APPLICATIONS</subject><subject>JOB CREATION</subject><subject>KNOWLEDGE BASED SYSTEMS</subject><subject>LABOR LAWS</subject><subject>LEGAL &amp; REGULATORY FRAMEWORK</subject><subject>LOCAL EMPLOYEES</subject><subject>LOCAL INPUTS</subject><subject>MANAGEMENT OPERATIONS</subject><subject>MANAGERIAL METHODS</subject><subject>MARKET RATES</subject><subject>MARKET SIZE</subject><subject>MARKETING SKILLS</subject><subject>NATIONAL ECONOMY</subject><subject>NATIONAL PRACTICES</subject><subject>NATIONAL REFORM</subject><subject>NET EXPORTS</subject><subject>NONTRADITIONAL EMPLOYMENT</subject><subject>NONTRADITIONAL EXPORTS</subject><subject>OPPORTUNITY COST</subject><subject>POLICY FRAMEWORK</subject><subject>POLLUTION</subject><subject>PREFERENTIAL TRADE</subject><subject>PREFERENTIAL TRADE ARRANGEMENTS</subject><subject>PRESENT VALUE</subject><subject>PRIVATE OWNERSHIP</subject><subject>PRIVATE PROPERTY</subject><subject>PRODUCTIVITY</subject><subject>PUBLIC OWNERSHIP</subject><subject>REFORM POLICY</subject><subject>RULES OF ORIGIN</subject><subject>TAX CONCESSIONS</subject><subject>TAXATION</subject><subject>TECHNOLOGY TRANSFER</subject><subject>TRADE LIBERALIZATION</subject><subject>TRADE POLICY</subject><subject>TRADE POLICY REFORM</subject><subject>TRADE REFORMS</subject><subject>WAGES</subject><subject>WORLD TRADE</subject><subject>WORLD TRADE ORGANIZATION FREE EXPORT ZONES</subject><fulltext>true</fulltext><rsrctype>book</rsrctype><creationdate>1998</creationdate><recordtype>book</recordtype><sourceid>VO9</sourceid><recordid>eNrjZBB3rSjILypRCCjKT04tLs7MS1eIys9LLeZhYE1LzClO5YXS3Awmbq4hzh665flFOSlJiXnZ8fkFqXnZefnlOakp6alFqQX5xZkl-UWV8YYGlhZm8YaGpoaWxmRqAwAAVjLS</recordid><startdate>199812</startdate><enddate>199812</enddate><creator>Madani, Dorsati</creator><general>World Bank, Washington, DC</general><scope>VO9</scope></search><sort><creationdate>199812</creationdate><title>Export Processing Zones</title><author>Madani, Dorsati</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-worldbank_openknowledgerepository_10986_115193</frbrgroupid><rsrctype>books</rsrctype><prefilter>books</prefilter><language>eng</language><creationdate>1998</creationdate><topic>AUTONOMY</topic><topic>BACKWARD LINKAGES</topic><topic>CAPITAL GOODS</topic><topic>COMPETITIVENESS</topic><topic>DEVELOPMENT ECONOMICS</topic><topic>DOMESTIC FIRMS</topic><topic>DOMESTIC MARKET</topic><topic>DOMESTIC SALES</topic><topic>ECONOMIC POLICY</topic><topic>EMPLOYMENT</topic><topic>ENVIRONMENTAL IMPACT</topic><topic>ENVIRONMENTAL IMPACTS</topic><topic>ENVIRONMENTAL POLLUTION</topic><topic>EXPORT</topic><topic>EXPORT BIAS</topic><topic>EXPORT CATALYSTS</topic><topic>EXPORT EARNINGS</topic><topic>EXPORT PROCESSING</topic><topic>EXPORT PROCESSING FIRMS</topic><topic>EXPORT PROCESSING ZONE</topic><topic>EXPORT PROCESSING ZONES</topic><topic>EXPORT PRODUCTION</topic><topic>EXPORT PROMOTION</topic><topic>EXPORT PROMOTION TOOLS</topic><topic>EXPORT STRATEGIES</topic><topic>EXPORTS</topic><topic>FISCAL POLICIES</topic><topic>FOREIGN DIRECT INVESTMENT</topic><topic>FOREIGN DIRECT INVESTMENTS</topic><topic>FOREIGN EXCHANGE</topic><topic>FOREIGN EXCHANGE ALLOCATIONS</topic><topic>FOREIGN EXCHANGE EARNINGS</topic><topic>FREE TRADE</topic><topic>FREE TRADE CONDITIONS</topic><topic>FREE TRADE ZONES</topic><topic>GROSS EXPORTS</topic><topic>HUMAN CAPITAL</topic><topic>IMPORTING COUNTRIES</topic><topic>IMPORTS</topic><topic>INCOME</topic><topic>INCOME GENERATION</topic><topic>INCOME TAXES</topic><topic>INDIRECT TAXATION</topic><topic>INDUSTRIAL BASE</topic><topic>INDUSTRIAL ESTATE</topic><topic>INDUSTRIAL INFRASTRUCTURE</topic><topic>INDUSTRIAL REFUSE</topic><topic>INDUSTRIALIZATION</topic><topic>INSURANCE</topic><topic>INTERMEDIATE INPUTS</topic><topic>INTERNATIONAL TRADE</topic><topic>INVESTMENT APPLICATIONS</topic><topic>JOB CREATION</topic><topic>KNOWLEDGE BASED SYSTEMS</topic><topic>LABOR LAWS</topic><topic>LEGAL &amp; REGULATORY FRAMEWORK</topic><topic>LOCAL EMPLOYEES</topic><topic>LOCAL INPUTS</topic><topic>MANAGEMENT OPERATIONS</topic><topic>MANAGERIAL METHODS</topic><topic>MARKET RATES</topic><topic>MARKET SIZE</topic><topic>MARKETING SKILLS</topic><topic>NATIONAL ECONOMY</topic><topic>NATIONAL PRACTICES</topic><topic>NATIONAL REFORM</topic><topic>NET EXPORTS</topic><topic>NONTRADITIONAL EMPLOYMENT</topic><topic>NONTRADITIONAL EXPORTS</topic><topic>OPPORTUNITY COST</topic><topic>POLICY FRAMEWORK</topic><topic>POLLUTION</topic><topic>PREFERENTIAL TRADE</topic><topic>PREFERENTIAL TRADE ARRANGEMENTS</topic><topic>PRESENT VALUE</topic><topic>PRIVATE OWNERSHIP</topic><topic>PRIVATE PROPERTY</topic><topic>PRODUCTIVITY</topic><topic>PUBLIC OWNERSHIP</topic><topic>REFORM POLICY</topic><topic>RULES OF ORIGIN</topic><topic>TAX CONCESSIONS</topic><topic>TAXATION</topic><topic>TECHNOLOGY TRANSFER</topic><topic>TRADE LIBERALIZATION</topic><topic>TRADE POLICY</topic><topic>TRADE POLICY REFORM</topic><topic>TRADE REFORMS</topic><topic>WAGES</topic><topic>WORLD TRADE</topic><topic>WORLD TRADE ORGANIZATION FREE EXPORT ZONES</topic><toplevel>online_resources</toplevel><creatorcontrib>Madani, Dorsati</creatorcontrib><collection>Open Knowledge Repository</collection></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext_linktorsrc</fulltext></delivery><addata><au>Madani, Dorsati</au><format>book</format><genre>book</genre><ristype>BOOK</ristype><btitle>Export Processing Zones</btitle><seriestitle>PREM Notes</seriestitle><date>1998-12</date><risdate>1998</risdate><volume>11</volume><abstract>This note focuses on export processing zones as potential, useful tools in export promotion, and, outlines the general features, and objectives of these zones, highlighting country experiences, and offering policy recommendations for establishing them. It identifies three main goals of export processing zones: provision of foreign exchange earnings; job creation, and income generation; and, attracts foreign direct investments, which enhances knowledge, and technology transfer. While common features are generally shared, export zones are differentiated by public, or private ownership, or management, and, by dependent qualities of management, facilities, and services they provide, namely, defined as "high-end" or "low-end". Recommendations suggest that export processing zones is one of a number of tools, used to off-set anti-export bias, in distorted economies. But just like other export promotion tools, export zones are a second-best policy choice. Zones can play a dynamic role in the development of a country, provided they are adequately managed, and integrated within national reform, and liberalization programs. However, zones should not be established in liberal, low-protection economies, due to the potential of lower than expected foreign direct investments, as a result of unattractive laws, and regulations, and because they may distort trade instruments, introducing discretionary elements in policy framework.</abstract><pub>World Bank, Washington, DC</pub><oa>free_for_read</oa></addata></record>
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subjects AUTONOMY
BACKWARD LINKAGES
CAPITAL GOODS
COMPETITIVENESS
DEVELOPMENT ECONOMICS
DOMESTIC FIRMS
DOMESTIC MARKET
DOMESTIC SALES
ECONOMIC POLICY
EMPLOYMENT
ENVIRONMENTAL IMPACT
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL POLLUTION
EXPORT
EXPORT BIAS
EXPORT CATALYSTS
EXPORT EARNINGS
EXPORT PROCESSING
EXPORT PROCESSING FIRMS
EXPORT PROCESSING ZONE
EXPORT PROCESSING ZONES
EXPORT PRODUCTION
EXPORT PROMOTION
EXPORT PROMOTION TOOLS
EXPORT STRATEGIES
EXPORTS
FISCAL POLICIES
FOREIGN DIRECT INVESTMENT
FOREIGN DIRECT INVESTMENTS
FOREIGN EXCHANGE
FOREIGN EXCHANGE ALLOCATIONS
FOREIGN EXCHANGE EARNINGS
FREE TRADE
FREE TRADE CONDITIONS
FREE TRADE ZONES
GROSS EXPORTS
HUMAN CAPITAL
IMPORTING COUNTRIES
IMPORTS
INCOME
INCOME GENERATION
INCOME TAXES
INDIRECT TAXATION
INDUSTRIAL BASE
INDUSTRIAL ESTATE
INDUSTRIAL INFRASTRUCTURE
INDUSTRIAL REFUSE
INDUSTRIALIZATION
INSURANCE
INTERMEDIATE INPUTS
INTERNATIONAL TRADE
INVESTMENT APPLICATIONS
JOB CREATION
KNOWLEDGE BASED SYSTEMS
LABOR LAWS
LEGAL & REGULATORY FRAMEWORK
LOCAL EMPLOYEES
LOCAL INPUTS
MANAGEMENT OPERATIONS
MANAGERIAL METHODS
MARKET RATES
MARKET SIZE
MARKETING SKILLS
NATIONAL ECONOMY
NATIONAL PRACTICES
NATIONAL REFORM
NET EXPORTS
NONTRADITIONAL EMPLOYMENT
NONTRADITIONAL EXPORTS
OPPORTUNITY COST
POLICY FRAMEWORK
POLLUTION
PREFERENTIAL TRADE
PREFERENTIAL TRADE ARRANGEMENTS
PRESENT VALUE
PRIVATE OWNERSHIP
PRIVATE PROPERTY
PRODUCTIVITY
PUBLIC OWNERSHIP
REFORM POLICY
RULES OF ORIGIN
TAX CONCESSIONS
TAXATION
TECHNOLOGY TRANSFER
TRADE LIBERALIZATION
TRADE POLICY
TRADE POLICY REFORM
TRADE REFORMS
WAGES
WORLD TRADE
WORLD TRADE ORGANIZATION FREE EXPORT ZONES
title Export Processing Zones
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