EconPapers    
Economics at your fingertips  
 

Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic

Fabrice Defever (), José‐Daniel Reyes, Alejandro Riaño () and Miguel Eduardo Sánchez‐Martín
Authors registered in the RePEc Author Service: Miguel Eduardo Sánchez-Martín ()

Economica, 2019, vol. 86, issue 343, 532-568

Abstract: Special economic zones (SEZ), one of the most important instruments of industrial policy used in developing countries, often impose export share requirements (ESR). That is, firms located in SEZ are required to export more than a certain share of their output to enjoy a wide array of incentives—a practice prohibited by the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures. In this paper we exploit the staggered removal of ESR across products and over time in the SEZ of the Dominican Republic—a reform driven by external commitments to comply with WTO disciplines on subsidies—to evaluate how ESR affect export performance at the product and firm levels. Using customs data on international trade transactions from the period 2006 to 2014, we find that making the Dominican SEZ regime WTO‐compliant made SEZ more attractive locations for exporters to be based in. The reform, however, did not have a significant effect on the country's exports or on the share of export value originating from SEZ.

Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/ecca.12276

Related works:
Working Paper: Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic (2018) Downloads
Working Paper: Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic (2017) Downloads
Working Paper: Special Economic Zones and WTO Compliance: Evidence from the Dominican Republic (2017) Downloads
Working Paper: Special economic zones and WTO compliance: evidence from the Dominican Republic (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:econom:v:86:y:2019:i:343:p:532-568

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0427

Access Statistics for this article

Economica is currently edited by Frank Cowell, Tore Ellingsen and Alan Manning

More articles in Economica from London School of Economics and Political Science Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-02-26
Handle: RePEc:bla:econom:v:86:y:2019:i:343:p:532-568