Export Processing Zones : A threatened instrument for global economy insertion?

The adoption of export-led growth strategies by developing countries is directly responsible for the considerable expansion of export processing zones (EPZs) in recent years. Such zones are frequently considered key instruments in the array of policies adopted by countries to attract foreign direct investment, boost employment, stimulate exports and economic growth, and finally to improve the transfer of technology and the acquisition of skills by the national work force. This paper examines, in the light of the experiences of several countries, the impact that an EPZ may have on the development of the host country. The facts show that the hopes pinned on such zones by developing countries are frequently excessive. Moreover, it demonstrates the challenges facing EPZs due to the new WTO regulations, as well as from new aspects of globalisation; both seem to be pushing towards reform on the geographical distribution of EPZs.