Export Processing Zones and Special Economic Zones as Generators of Economic Development: The Asian Experience

Abstract

Discusses the adoption of a strategy of export-led growth by way of establishing EPZs/SEZs (export processing zones/special economic zones) in the Asian region. Major differences between EPZs in countries with market economies and SEZs in a socialist country (China) are brought out. Performance is evaluated in terms of achievements in attracting foreign investment, earning foreign exchange, export growth, employment generation, transfer of technology, backward and forward domestic linkages, and regional development. Common problems encountered by the Asian zones include inadequate infrastructure provision, social problems due to the high percentage of female workers and the exploitation of the indigenous labour force, inefficient government administration and low standards of management, vulnerability to changing conditions in the world economy, as well as competition among themselves. -from Authors