An overview of export processing zones: selected Asian countries

This paper surveys the literature on the perfonnance of Export processing Zones (EPZs) that have used a benefit-cost analytical framework. The survey reveals that as industrial development proceeds, the gap between market and opportunity cost of labour narrows and the interest on EPZs tends to disspear. Interest on EPZs may hold only if the zones generate private profit to domestic shareholders. Recent policy measures of World Trade Organisation may eventually result in lower rates ofprivate returns and may become a threat to existing and new EPZs.