Export Processing Zones and the Composition of Greenfield FDI
|Title:||Export Processing Zones and the Composition of Greenfield FDI||Authors:||Davies, Ronald B.
|Permanent link:||http://hdl.handle.net/10197/9448||Date:||Apr-2018||Abstract:||Export processing zones (EPZs) are an increasingly common type of special economic zone. They are designed to facilitate international trade by lowering trade costs, such as import duties and/or export taxes. EPZs should thus be particularly attractive locations for multinational enterprises engaging in vertical, trade-intensive, foreign direct investment (FDI). Using data on worldwide greenfield FDI projects over the period 2003-2014, we find patterns consistent with this hypothesis. EPZs have a large positive effect on manufacturing FDI projects with a production focus, especially in trade- and labour-intensive sectors. Overall, our results suggest that EPZs are an effective tool to attract manufacturing FDI which exploit the opportunities offered by global value chains.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Start page:||1||End page:||31||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP2018/07||Keywords:||Export Processing Zone; Special Economic Zone; Greenfield FDI; Global Value Chain||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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