Welfare Effects and Optimal Incentive Package of Export Processing Zones

Tsui, Kai Yuen

doi:10.1080/10168739300080014

Cited by 3 publications

(2 citation statements)

References 13 publications

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“…Rodriguez (1976) and Hamilton and Svensson (1982). Other studies conducted by Warr (1989), Madani (1998), McKenney (1993, Mireri (2000), Tekere (2000), UNCTAD (1973), UNIDO (1980) ( ), Tsui, (1993, Cling and Letilly, (2001), McKenney, (1993), and Jayanthakumaran, (2003.…”

Section: External Studiesmentioning

confidence: 98%

The Fiscal and Economic Impact of Qualifying Industrial Zones: The Case of Jordan

Mdanat

2006

SSRN Journal

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Section: External Studiesmentioning

confidence: 98%

The Fiscal and Economic Impact of Qualifying Industrial Zones: The Case of Jordan

Mdanat

2006

SSRN Journal

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“…There were also many discussions on the influencing factors and linkage effects of the development of free trade zones. For example, Miyagiwa (1986) and Tsui (1993) carried out theoretical and empirical research on free trade zones from the perspective of welfare economics. Jenkins and Arce (2016) probed into the backward linkage and its regional economic driving effect of the export processing zones.…”

Section: Literature Reviewmentioning

confidence: 99%

Comparative Advantages of Free Trade Port Construction in Shanghai under the Belt and Road Initiative

Wang

2020

IJFS

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As China’s opening-up grows wider under the Belt and Road Initiative, the exploration and construction of free trade ports have received increasing attention. In 2018, China’s first free trade port was settled in Hainan instead of Shanghai. In 2019, after the Lingang New Area of China (Shanghai) Pilot Free Trade Zone was approved by the central government, six new pilot free trade zones were launched in Shandong, Hebei, Heilongjiang, Jiangsu, Yunnan, and Guangxi provinces. As the bridgehead of the Belt and Road Initiative, Shanghai established the first and biggest pilot free trade zone in China and gained the priority of institutional innovation exploration in Lingang New Area. Whether and how Shanghai will lead the construction of free trade ports and the new round of higher-level opening-up has become a research agenda that requires further study. Based on the document analysis, competition analysis and factor analysis in this paper, the following results were drawn out: (1) The construction of a free trade port is an upgrade of the 18 free trade zones and the 50 cities involved, and it needs more high-level opening-up, more sophisticated services, more rigorous supervision, and more professional talent; (2) With its geographical location, economic foundation, development support, and industrial services, Shanghai has the potential, foundation, and momentum to explore institutional innovation in the construction of pilot free trade zones and free trade port; (3) Development basis, port shipping, talent attraction, service support, risk supervision and control are the five major comparative advantages and the important driving factors that need to be considered in exploring and leading the construction of China’s free trade port under the higher quality development of the Belt and Road Initiative.

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The Fiscal and Economic Impact of Qualifying Industrial Zones

Metri¹

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This thesis investigates the fiscal and economic impact of Qualifying Industrial Zones (QIZs) on the Jordanian economy. In contrast to other studies, this study assesses costs and benefits of establishing such zones in Jordan. Fiscal as well as economic issues are investigated to clarify the impact of QIZs on the host country.This QIZ agreement pursued political aims more than broad economic goals, as QIZs were designed to ameliorate relations between Israel and Jordan. They were also expected to improve relations between Israel and other Arab countries through the cooperation required to get duty-free access to the USA market.Most countries consider special economic zones, such as QIZs, engines for growth, but empirical evidence from many countries in the world shows that the impact of various economic zones on growth is mixed. It has been assumed that QIZs play a significant role in increasing exports and earning foreign currency. However, ignoring the offsetting effects of imports is misleading. Depending heavily on an export-led growth strategy to stimulate and accelerate economic growth in the country should be viewed in light of increased imports of production inputs.The most important effects resulting from the establishment of QIZs are on employment and poverty. According to this analysis, QIZs contribute positively to the welfare of the poor in the country by increasing employment opportunities for unemployed and unskilled persons.QIZs prove ineffective at creating backward and forward linkages with the local economy.Although some effects may be observable, they are not necessarily large or immediate.Tax incentives are one of the main negative effects of the QIZs on the local economy, as they do not have much influence on investors and thus are a waste of resources. Other factors, like the economic and political stability and the quota and duty-free exports to the USA market, are much more important. The generous incentives that the country offers to attract investors Summary V should be connected to increasing levels and degrees of technological sophistication of the products.As a result of this thesis, a set of policy options were derived. Economic data about the QIZs are impressive, but improvements in political relations are far less so. The history of QIZs was found to be a mixture of failures and successes. It is important to take the actual political situation of the country into account before establishing such zones. The concept of these zones is complex policy instrument to be used in a time of regional conflicts as is the case now. It is more important to establish these zones according to the needs of the country.Establishing QIZs might benefit some areas, but it takes a long time before the gains are visible throughout the whole country. In conclusion, QIZs are but one policy to be considered and the government must still try to find alternatives that better suit the needs of the country. Furthermore, in the absence of the role of tax incentives in the investors' decisions, the QIZs should n...

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Welfare Effects and Optimal Incentive Package of Export Processing Zones

Cited by 3 publications

References 13 publications

The Fiscal and Economic Impact of Qualifying Industrial Zones: The Case of Jordan

The Fiscal and Economic Impact of Qualifying Industrial Zones: The Case of Jordan

Comparative Advantages of Free Trade Port Construction in Shanghai under the Belt and Road Initiative

The Fiscal and Economic Impact of Qualifying Industrial Zones

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