Combining export processing zones and regional free trade agreements: lessons from the Mexican experience
Article Abstract:
Export processing zones (EPZs) and regional trade agreements are two common initiatives utilized by developing country governments in order to increase the wealth creation effects of today's international trade and investment system. In this paper, we argue that these two initiatives are driven by somewhat incompatible economic rationales. Based on the North American experiment in combining a major EPZ (Mexico's maquiladoras) within the terms of a regional free trade agreement (the North American Free Trade Agreement), we test to determine whether the logic of a regional integration initiative or that of the EPZ is dominate. Our results suggest that the competitive dynamics of Mexico's EPZ industry have not been fundamentally altered by NAFTA's regional incentives. We conclude with recommendations for policy makers in other developing countries that might be considering attempting to impose regional development schemes on the large and politically powerfully TNCs that tend to dominate the global EPZ industry. Key words -- Latin America, Mexico, NAFTA, maquiladoras
Publication Name: World Development
Subject: International relations
ISSN: 0305-750X
Year: 2001
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How important is improved water infrastructure to microenterprises? Evidence from Uganda
Article Abstract:
Despite the proliferation of micro and small enterprises (MSEs) in sub-Saharan Africa (SSA), most have difficulty surviving, let alone expanding their operations. Using empirical evidence from two Ugandan towns we explore the impact of investments in water supply infrastructure on MSEs. Our findings suggest that, despite perceptions among firm owners that water supply is a binding constraint, economic benefits to MSEs of supply improvements may be limited. Current water infrastructure planning strategies may be based on erroneous assumptions about the relative demand for improved water supply by firms and households, as well as the feasibility of cross-subsidies between groups of users. Key words -- Uganda, Africa, infrastructure, microenterprises, water supply, willingness to pay
Publication Name: World Development
Subject: International relations
ISSN: 0305-750X
Year: 2001
User Contributions:
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