Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic

Special economic zones, one of the most important instruments of industrial policy in developing countries, often feature export share requirements. That is, firms located in these zones are obliged to export more than a certain stated share of the...

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Main Authors:	Defever, Fabrice, Reyes, Jose-Daniel, Riano, Alejandro, Sanchez-Martin, Miguel Eduardo
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	special economic zones industrial policy export competitiveness World Trade Organization export requirements firm entry business environment
Online Access:	http://documents.worldbank.org/curated/en/2016/10/26898193/elimination-export-requirements-special-economic-zones-affect-export-performance-evidence-dominican-republic http://hdl.handle.net/10986/25319

id	okr-10986-25319
recordtype	oai_dc
spelling	okr-10986-253192021-04-23T14:04:29Z Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic Defever, Fabrice Reyes, Jose-Daniel Riano, Alejandro Sanchez-Martin, Miguel Eduardo special economic zones industrial policy export competitiveness World Trade Organization export requirements firm entry business environment Special economic zones, one of the most important instruments of industrial policy in developing countries, often feature export share requirements. That is, firms located in these zones are obliged to export more than a certain stated share of their output to enjoy the wide array of incentives available there, a practice prohibited by the World Trade Organization. This paper exploits the staggered removal of export requirements across products and over time in the special economic zones of the Dominican Republic to evaluate whether the importance of exports originating from the zones was affected by the elimination of export requirements. The findings show that entry increased among firms in special economic zones, while the average value of export transactions fell for existing exporters following the reforms. At the same time, continuous exporters were unaffected by the policy change, possibly because these firms were not constrained by the export requirement. Overall, special economic zones became more important with respect to the number of exporters based there but not in terms of the value of exports. The findings suggest that the elimination of performance requirements made it more attractive for firms to be based in special economic zones. 2016-11-01T19:41:38Z 2016-11-01T19:41:38Z 2016-10 Working Paper http://documents.worldbank.org/curated/en/2016/10/26898193/elimination-export-requirements-special-economic-zones-affect-export-performance-evidence-dominican-republic http://hdl.handle.net/10986/25319 English en_US Policy Research Working Paper;No. 7874 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Dominican Republic
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	special economic zones industrial policy export competitiveness World Trade Organization export requirements firm entry business environment
spellingShingle	special economic zones industrial policy export competitiveness World Trade Organization export requirements firm entry business environment Defever, Fabrice Reyes, Jose-Daniel Riano, Alejandro Sanchez-Martin, Miguel Eduardo Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
geographic_facet	Latin America & Caribbean Dominican Republic
relation	Policy Research Working Paper;No. 7874
description	Special economic zones, one of the most important instruments of industrial policy in developing countries, often feature export share requirements. That is, firms located in these zones are obliged to export more than a certain stated share of their output to enjoy the wide array of incentives available there, a practice prohibited by the World Trade Organization. This paper exploits the staggered removal of export requirements across products and over time in the special economic zones of the Dominican Republic to evaluate whether the importance of exports originating from the zones was affected by the elimination of export requirements. The findings show that entry increased among firms in special economic zones, while the average value of export transactions fell for existing exporters following the reforms. At the same time, continuous exporters were unaffected by the policy change, possibly because these firms were not constrained by the export requirement. Overall, special economic zones became more important with respect to the number of exporters based there but not in terms of the value of exports. The findings suggest that the elimination of performance requirements made it more attractive for firms to be based in special economic zones.
format	Working Paper
author	Defever, Fabrice Reyes, Jose-Daniel Riano, Alejandro Sanchez-Martin, Miguel Eduardo
author_facet	Defever, Fabrice Reyes, Jose-Daniel Riano, Alejandro Sanchez-Martin, Miguel Eduardo
author_sort	Defever, Fabrice
title	Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
title_short	Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
title_full	Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
title_fullStr	Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
title_full_unstemmed	Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic
title_sort	does the elimination of export requirements in special economic zones affect export performance? : evidence from the dominican republic
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/10/26898193/elimination-export-requirements-special-economic-zones-affect-export-performance-evidence-dominican-republic http://hdl.handle.net/10986/25319
_version_	1764458951917699072

Does the Elimination of Export Requirements in Special Economic Zones Affect Export Performance? : Evidence from the Dominican Republic

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