Download - Trade Policy in Developing Countries
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TRADE POLICY IN DEVELOPING COUNTRIES
11-1
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DEVELOPING COUNTRIES ACCORDING TO THE IMF (”GRADUATED” ECONOMIES IN RED)
11-2
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TARIFF RATES IN DEVELOPING COUNTRIES
Source: World Bank. 11-3
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THE ASIAN TAKEOFF
Source: Total Economy Database. 11-4
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ASIA’S SURGING TRADE
11-5
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EXPORT PROCESSING ZONES
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THE EPZ MODEL IS A VERY POPULAR FORM OF INDUSTRIAL
POLICY
The number of EPZs keeps growingMore than half of the world’s countries have them
There are around 3,000 - 5,000 EPZs in the world today
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Douglas Zhihua Zeng, “How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Development?,” Policy Research Working Paper 5583, the World Bank.
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PHILIPPINES:
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POLAND
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SIMPLE EPZ MODEL
A country: Solid boundary of import tariffs
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Carve out a piece of land where the tariffs do not apply
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EPZ!
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EPZ
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FDI
EXPORTS
IMPORTS
LABOR
INTERMEDIARIES UTILITIES
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MULTINATIONALS
DOMESTIC FIRMS
WAGES
FOREIGN EXCHANGE
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KNOW-HOW NETWORKS
MULTINATIONALS
DOMESTIC FIRMS
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SINGLE FACTORY ZONES
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SINGLE FACTORY ZONES
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SINGLE FACTORY ZONES