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The paper aims to investigate the effects of several determinants of firm import intensity in US foreign trade zones (FTZs). Even though the major objective for the establishment of US FTZs is to encourage exports by facilitating the duty-free entry of imports, US firms have used it as a gateway to import goods into the US market. Currently, over 90 per cent of US FTZ output is consumed in the USA. The author examines the major determinants for such import intensity in US FTZs.

The study is based on a survey that was conducted to explore the factors that influence import intensity of firms operating in US FTZs.

The findings reveal that besides export orientation of firms, the most promising predictors of import intensity of firms operating in USA FTZs are the policy environment in the form of inverted tariff benefits and firm business strategy.

The findings are important for managers presently operating in US FTZs or intend to do so in future.

Even though there are numerous studies on free trade zones and exports, this is the first study to examine the import intensity of US FTZs and their determinants.

Foreign trade zone (FTZ) usage in the United States has increased substantially in this decade. This paper discusses the major reasons for that increase, which include a favourable regulatory climate, growing awareness of the competitive benefits of operating within a zone, and community interest in promoting zones as an incentive to attract investment. Examined here are developments in the Mid‐American region, which reflect national trends. In Indiana, illinois, Ohio and Michigan there is considerable interest in general purpose zones, but so far business use has been limited. The major activity is occuring in subzones in individual manufacturing plants, and this is likely to continue in the region as well as nationally.

In 2008, a bill was introduced in the 110th Congress (HR6415) to address the “unintended consequences” of US free trade agreements (US FTA) on manufacturers operating in US foreign trade zones (FTZs). Presently, US manufacturers operating in FTZs that use imported components pay a tariff (on finished goods entering the US market), which is not paid by their competitors in countries that have free trade agreements (FTAs) with the USA. The purpose of this paper is to explore the implications of a legislative proposal to address this issue (the bill is still under consideration and not yet been passed by Congress) for domestic firms and the overall economy.

The paper is largely based on the analysis of the legislative proposal (HR6415), and US trade data obtained from the United Nations.

The paper shows that the trade agreement parity (TAP) proposal may have the undesirable effect of encouraging local firms (in US FTZs) to use foreign components and increasing the trade deficit. It also shows that the proposal, by facilitating the entry of more foreign imports undermines the original purpose for which FTZs were designed.

There are no papers examining the implications of this Congressional bill on domestic competition and the overall US economy. This paper and its recommendations will help US policymakers to re‐evaluate the existing proposal and also revisit the role of FTZs in the US economy.

This article examines the issues related to US foreign‐trade zones as perceived by the zone managers. A longitudinal study of foreign‐trade zone managers was conducted. The results of the two surveys and an extensive dialogue with foreign‐trade zone managers suggest a continuing lack of awareness and understanding of the benefits of zone operations on the part of potential zone users. Implications are discussed from a marketing management perspective.

This paper is submitted for a special issue of Asian Education and Development Studies on the topic of Greater China Development. The purpose of this paper is to explore the challenges and opportunities of developing a free trade zone (FTZ)/free port in China’s Hainan island.

Hainan is to be Mainland China’s newest and largest FTZ. However, the experience of the existing Mainland FTZs is not encouraging, their limited, piecemeal reforms attracting little interest from foreign investors. To make a difference and provide a new engine of growth for the Mainland economy, the approach for Hainan needs to be much bolder. Hainan should aim to develop as a free port, a services centre and a financial centre.

Regarding the financial sector development, the opportunity should be taken to experiment with special drawing rights. Hong Kong can provide the exemplar and expertise to jump-start Hainan’s development. To provide critical mass, mutual access should be opened between Hainan and the nine Mainland municipalities of the Greater Bay Area. An inner border will be needed to distinguish the experimental area from the rest of the Mainland, and an outer border to preserve its integrity vis-à-vis the international environment.

If Hainan can be developed into the China Offshore Centre, it would have the potential to restart the Mainland’s stalled reform process, and to relieve international trade and financial tensions.

Cooperation in agriculture and agricultural products trade is a new driving force for Sino-Russian cooperation in economy and trade in recent years. Driven by the interests and needs of both countries, a Free Trade Zone (FTZ) on the Chinese territory facing Russia, the Heilongjiang FTZ, has been established, and agricultural cooperation has attracted much attention within the FTZ framework. This chapter aims to analyze and explain the prospects of Sino-Russian agricultural cooperation under the framework of the Heilongjiang FTZ based on the current situations of cooperation. The author concludes that the Heihe and Suifenhe Areas in Heilongjiang FTZ are developed with a focus on Sino-Russian agricultural cooperation. This chapter is innovative because it combined the traditional research perspective on Sino-Russian agricultural cooperation with that under the FTZ framework. The author thinks that to facilitate the cooperation between the two countries in agriculture under the FTZ, the two governments must cooperate more extensively. Besides, they need to discuss the establishment of infrastructures like a joint agricultural product R&D centre and a digital development centre for agriculture. Meanwhile, the schemes of dispute settlement and risk-sharing should be addressed as well.

The establishment of free trade zones (FTZs) is an important experiment as part of the reform and opening up policy. This paper aims to focus on the issue of production efficiency of environmental protection enterprises in FTZs. Changes in the external and internal environments of enterprises can easily lead to changes in the production efficiencies of enterprises. The establishment of FTZs can change the external environment of enterprises. Knowledge accumulation changes the internal environment of enterprises. However, traditional efficiency analysis has usually ignored the internal and external heterogeneity of decision-making units, resulting in the distortion of the evaluation results.

This paper examines the relationship between knowledge accumulation and development potential based on financial data of environmental protection enterprises that were listed in Shanghai and Shenzhen A stocks, from 2009 to 2016. Then, through data envelopment analysis cross-efficiency analysis of the listed environmental protection enterprises from external heterogeneity, BP neural network model is set up.

The results show that the model set up in this paper is stable and reliable. The paper makes policy suggestions such as stimulating trade inside industry, quickening technological progress and enhancing environmental protection.

This paper analyzes the economy, environmental protection, science and technology and education to simulate the external environment of enterprises. Based on the experience data from the completion of Shanghai FTZ, this paper predicts the future development potential of Hainan FTZ enterprises.

This article reviews the emerging use of foreign trade zones in the United States and presents a competitive analysis framework to segment markets, determine levels of marketing effort, and develop differential marketing strategies for zone services. Using a two‐dimensional model of potential use and competitive position, the proposed framework permits foreign trade zone services and market segments to be analysed in a single model where differential marketing strategies can be readily identified. The case of a recently formed trade zone is used to illustrate the application of the proposed framework.

Structural economists have been amongst the foremost proponents of a pro‐active industrial policy as the mechanism for promoting rapid economic growth (Lewis, 1956; Myrdal, 1957; Kaldor, 1967; Thirlwall, 1989). This is substantiated by the argument that manufacturing being characterised by increasingly specialised inter‐related activities, radiates tremendous impulses both intra and inter sectorally (Young, 1928: 527–42). Using a sample of 12 developed countries, Kaldor (1967:3–23; 1975:891–6; 1979; 1989:282–310) attempted an empirical study to support this relationship. A positive correlation between manufacturing growth and that of the economy has been defended on the grounds that manufacturing growth increases static (relate to size and scale of production units and are characteristic largely of manufacturing where in the process of doubling the linear dimensions of equipment, the surface increases by the square and the volume by the cube), as well as dynamic (relate to increasing returns brought about by ‘induced’ technical progress, learning by doing, external economies in production, etc.) returns (Thirlwall, 1989: 60). Since manufacturing also produces capital goods that are used in different industrial branches and other sectors, it is seen as a powerful mechanism for transmitting technical change (Weiss, 1988). It is for these reasons, structuralists generally prescribe government policies that favour manufacturing expansion. Malaysia is a good example of a natural resource rich country that has made manufacturing its main plank of economic growth especially since the launching of the New Economic Policy (NEP) in 1971 (see Malaysia, 1976). However, as industrial policy in each socio‐political space offers state‐specific characteristics, we will analyse industrialisation within Malaysia's setting.

The purpose of this research is to study the Colombian avocado export industry, identify key insights associated with creating and sustaining the avocado value chain, and to understand the impact of the public policies affecting this industry.

The approach consists of two case studies to shed light on the opportunities and challenges of developing a sustainable avocado value chain in Colombia. One case deals with a vertically integrated business (Arcángel Miguel) while the other focuses on an association of small growers (Asohass). The analysis was informed by a series of interviews with key actors along the avocado supply chain to uncover the business strategies to move avocados to destination markets. The authors compare and contrast approaches to business development, international expansion, and role of public policies.

The authors found that the strategies followed by these organizations differ in means but aim for the same objective: maximize profits, improve environmental performance, and enhance the social wellbeing of growers. The authors found that each type of business model requires distinct public policies to succeed and different strategies to appropriately allocate efforts. The findings are relevant to other high-value crops and other Latin American countries with similar geographical and social characteristics.

These insights underscore the need of public policies tailored to the specific needs of the different actors in the value chain. The current emphasis on certifications and export markets works well for large agribusinesses, but smallholder growers need policies tailored to new investments in physical, human, and social capital.

This study contributes to the literature on avocado value chains in Latin America, emphasizing the challenges faced by the emergent Colombia avocado sector, a country that only began exporting this commodity in 2010.