LOCATIONAL CHOICE FOR EXPORT PROCESSING ZONES IN DEVELOPING COUNTRIES

Kazuhiro Tetsu ()
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Kazuhiro Tetsu: Department of Economics, Shizuoka University, 836 Ohya, Shizuoka-shi, 422-8529, Japan

The Singapore Economic Review (SER), 2004, vol. 49, issue 02, 179-193

Abstract: Little attention has been given to the issue of the locational choice for EPZs, from a theoretical point of view, except by Miyagiwa (1993). In this paper, using a three-sector general equilibrium model with unemployment, we will examine theoretically the issue of where to locate EPZs. This model gives policy makers in developing countries four policy options. An interesting result is as follows: it reveals that attracting foreign firms which are more labor-intensive (capital-intensive) than the rural domestic firms into the rural-based EPZ is the best (worst) policy for developing countries.

Keywords: Export processing zones; foreign capital inflow; development strategy (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1142/S0217590804000871

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