Who really benefits from export processing zones? Evidence from Nicaraguan municipalities

Picarelli, Nathalie (2016) Who really benefits from export processing zones? Evidence from Nicaraguan municipalities. Labour Economics, 41. pp. 318-332. ISSN 0927-5371

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Abstract

Export processing zones are popular trade policies in developing countries, but there is limited empirical evidence on their local effects. This paper examines the impact of their establishment on the levels of per capita expenditure across Nicaraguan municipalities for the period 1993 to 2009. Using the time and cross-section variation of park openings in a difference-in-differences framework, I find that on average consumption levels increased by 10 to 12 percent in treated municipalities. Yet, average effects mask significant disparities across the expenditure distribution. The results suggest that the policy benefited the upper-tail the most: expenditure levels increased by up to 25 percent at the 90th percentile. At the opposite of the distribution, only the bottom decile registered a small positive effect of close to 10 percent across the period.

Item Type:	Article
Official URL:	http://www.journals.elsevier.com/labour-economics
Additional Information:	© 2016 The Author © CC BY
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce H Social Sciences > HT Communities. Classes. Races
JEL classification:	C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C21 - Cross-Sectional Models; Spatial Models; Treatment Effect Models D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources; Human Development; Income Distribution; Migration O - Economic Development, Technological Change, and Growth > O2 - Development Planning and Policy > O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
Date Deposited:	26 May 2016 10:32
Last Modified:	15 Apr 2024 02:57
Projects:	PhD Studentship
Funders:	Economic and Social Research Council
URI:	http://eprints.lse.ac.uk/id/eprint/66652

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