Export processing zones : The case of the Republic of Korea

The export processing zones (EPZ's) of South Korea are put into the perspective of the country's overall industrialization strategy and the special role and objectives assigned to them are described. The actual performance of the EPZ's is analyzed in terms of various criteria (for example, investment, employment, exports and profitability). Examination of the extent and potential of backward linkages between EPZ enterprises and the domestic economy primarily in terms of material inputs and of subcontracting activities. Attempts are also made to draw some conclusions regarding the crucial determinants of linkage creation, as to their market- or policy-induction. Considerations of the future role and functions for EPZ's in South Korea and of some of the lessons that the case of this country may hold for other developing countries. Statistics, 1970-86. (EVD)