Export Processing Zones in Central America

Harvard Institute for International Development Working Paper No. 646

60 Pages Posted: 12 Aug 1999

See all articles by Mauricio Jenkins

Mauricio Jenkins

INCAE

Felipe Larrain

Pontificia Universidad Catolica de Chile

Gerardo Esquivel

El Colegio de Mexico - Centro de Estudios Economicos

Date Written: August 1998

Abstract

This paper analyzes Export Processing Zones (EPZs) from a worldwide perspective and draws lessons from the accumulated experience in several countries. It argues that developing countries can take advantage of the opportunities provided by EPZs for the acquisition of superior technology, upgrading of labor and managerial skills, and greater access to foreign markets. The paper then examines the development and economic significance of EPZs and similar export-oriented regimes in Central America. This analysis shows that during the 1990s the economic significance of EPZs and other export-oriented regimes increased rapidly, although not uniformly, throughout Central America. The paper ends with a series of considerations and policy proposals for EPZs development in the region. Among other policies, this paper focuses on the promotion of industry diversification of export-oriented activities, on the development of stronger backward linkages, and on the upgrading of the export-oriented legislation in Central America.

JEL Classification: F14, F15, O19

Suggested Citation

Jenkins, Mauricio and Larrain, Felipe and Esquivel, Gerardo, Export Processing Zones in Central America (August 1998). Harvard Institute for International Development Working Paper No. 646, Available at SSRN: https://ssrn.com/abstract=168174 or http://dx.doi.org/10.2139/ssrn.168174

Mauricio Jenkins (Contact Author)

INCAE ( email )

Campus de Alajuela
Apartado 960-4050
Alajuela
Costa Rica
506-437-2355 (Phone)
506-433-9955 (Fax)

Felipe Larrain

Pontificia Universidad Catolica de Chile ( email )

Av. Vicuna Mackenna 4860
Macul. Correo 17
Santiago
Chile
56 2 354-4027 (Phone)
56 2 553-2377 (Fax)

Gerardo Esquivel

El Colegio de Mexico - Centro de Estudios Economicos ( email )

Camino al Ajusco 20
Col. Pedregal de Santa Teresa
Mexico DF 10740
Mexico
+52 55 5449-3000 x50031 (Phone)
+52 55 5645-0464 (Fax)

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