A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Aggarwal, Aradhna Working Paper Performance of export processing zones: a comparative analysis of India, Sri Lanka and Bangladesh Working Paper, No. 155 Provided in Cooperation with: Indian Council for Research on International Economic Relations (ICRIER) Suggested Citation: Aggarwal, Aradhna (2005) : Performance of export processing zones: a comparative analysis of India, Sri Lanka and Bangladesh, Working Paper, No. 155, Indian Council for Research on International Economic Relations (ICRIER), New Delhi This Version is available at: http://hdl.handle.net/10419/176177 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. 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Content List of Tables................................................................................................................................ iii List of Figures............................................................................................................................... iv Foreword........................................................................................................................................ v 1. Introduction....................................................................................................................... 1 2. Theory of EPZs................................................................................................................. 4 3. Evolution of the EPZ Policy : A Comparative Analysis of India, Bangladesh and Sri Lanka.................................................................................................................................. 7 3.1. India ..........................................................................................................................7 3.1.1. Initia l Phase : 1965-1985.......................................................................................................................... 7 3.1.2. Expansionary Phase : 1985-1991............................................................................................................ 8 3.1.3. Consolidating Phase : 1991-2000............................................................................................................ 8 3.1.4. Emergence Phase : 2000 onwards .......................................................................................................... 9 3.2. Sri Lanka .................................................................................................................10 3.2.1. First Phase : 1978-1990 ......................................................................................................................... 10 3.2.2. Second Phase : 1990-1998..................................................................................................................... 11 3.2.3. Third Phase : 1998 onwards .................................................................................................................. 12 3.3. Bangladesh...............................................................................................................12 3.3.1. First Phase : 1984-1998.......................................................................................................................... 12 3.3.2. Second Phase : 1998 Onwards............................................................................................................. 13 4. Governance of the zones : A Comparative Analysis.................................................... 15 4.1. Administrative set up................................................................................................15 4.1.1. India ........................................................................................................................................................... 15 4.1.2. Sri Lanka ................................................................................................................................................... 17 4.1.3. Bangladesh ............................................................................................................................................... 18 4.2. Administrative Procedures ........................................................................................20 4.2.1. India ........................................................................................................................................................... 20 4.2.2. Sri Lanka ................................................................................................................................................... 23 4.2.3. Bangladesh ............................................................................................................................................... 24 4.3. Quality of Governance : Entrepreneurs’ Perspective...................................................25 5. Incentives : A Comparative analysis ............................................................................. 28 5.1. India ........................................................................................................................28 5.2. Sri Lanka .................................................................................................................31 5.3. Bangladesh...............................................................................................................33 i 6. Infrastructure : A Comparative analysis...................................................................... 36 6.1. The Provision of Infrastructure Facilities by the Zones................................................36 6.2. Quality of infrastructure............................................................................................38 7. EPZ Performance : India, Bangladesh and Sri Lanka................................................ 42 7.1. Expansion in Zone Investment and Employment.........................................................42 7.1.1. Country-Level Analysis ......................................................................................................................... 42 7.1.2. Zone-Wise Analysis ................................................................................................................................ 44 7.2. Export Performance..................................................................................................48 7.2.1. Share in Total Exports : Aggregate Analysis ..................................................................................... 48 7.2.2. Growth Rates in Exports : Aggregate Analysis ................................................................................. 49 7.2.3. Export-Performance : Zone-Wise Analysis ........................................................................................ 51 7.3. Sectoral Composition of Exports...............................................................................53 8. Variation in the Zone Performance : Our Hypotheses ............................................... 57 9. Research Methodology and Empirical Results ............................................................ 63 9.1. Primary Survey Based Analysis .................................................................................64 9.1.1. Infrastructure ............................................................................................................................................ 66 9.1.2. Location..................................................................................................................................................... 67 9.1.3. Incentives.................................................................................................................................................. 69 9.1.4. Governance..............................................................................................................................................