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Export processing zones (English)

The World Bank has long supported developing countries in reforming their inward-oriented trade and regulatory policies to an outward-oriented direction and in improving the international competitiveness of their industries. One of the key elements critical for the effective implementation of such reforms and improvements is to design appropriate policy and administrative instruments that are suitable for the particular conditions of a developing economy. To assist in such design, the Industry Development Division has carried out research and operational support work in export policy instruments and institutions. An export processing zone (EPZ) is one of the various export policy instruments studied by the Division. In recent years, there has been growing interest in EPZs, particularly among low-income developing countries, as a tool for helping them overcome their inability to generate an outward supply response and to provide immediate employment, as well as foreign exchange earnings, by inducing foreign direct investment. The purpose of this paper is to provide a perspective on the EPZ as a policy instrument as well as an industrial estate, by reviewing global and the World Bank Group's experience with EPZs and highlighting conditions that have contributed to their success and elements that have caused difficulties.




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Export processing zones (English). Policy and research series ; no. 20 Washington, D.C. : World Bank Group.