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This chapter intends to examine the relationship between government incentives and the mode of firms’ finance of their operation in Nigeria. Specifically, it does relate the solvency of the firm with the quality of their financing decisions and observed if government incentives such as creation of export processing zones and industrial parks will affect the firm’s decision of depending on external versus internal financing.

The results presented in this chapter are based on analysis of a firm-level data taken from the 2014 firm-level survey of the World Bank’s Enterprise Survey project for Nigeria. Different estimation techniques are applied for robustness and sensitivity. They include both the parametric and non-parametric regression approach.

The robust estimations show that firms that benefit from the government incentives tend to use more of internal funding to finance their operation unlike firms that are non-beneficiaries. In addition smaller firms are going to benefit more from the incentives than older firms, and less profitable firms are also going to use more of internal financing if they benefit from government incentives.

This chapter will be helpful for both research and teaching for undergraduate and post-graduate students. Importantly, its analysis and result will be useful for policy makers and their allies.

This chapter discusses solvency issues by considering the financing decision of firms, which is an important aspect in the going concern of firms.

This paper explores the potentiality of export processing zones (EPZs) as a development strategy for Sub‐Saharan African countries using the Mauritian EPZ model as a case study. In the literature positive relationships between export expansion and economic growth and between EPZs and export growth have been found in developing countries. Export‐oriented strategy is particularly important for developing countries given their dependency on foreign countries for most of their key inputs and technologies required in their production. Our findings suggest that EPZs can play a crucial role in the economic and social development of a country. Also that EPZs’ success may be greater if they are implemented as part of an overall trade‐oriented reform programme aimed at opening up the whole country rather than treating them as enclaves. Comprehensive incentives are required. The Mauritian EPZ experience thus provides good lessons to other Sub‐Saharan African countries pursuing economic reforms.

This chapter reviews the role of industrial parks (IP) as drivers of export-led industrialisation in Ethiopia. For several decades, IPs or special economic zones have been promoted as policy instruments to attract investment, create jobs and promote exports of manufactured goods. However, their popularity as policy instruments has been mainly associated with the successful export-led industrialisation of emerging economies in East Asia where IPs have played a critical role not only in attracting investment and promoting export-led growth but also transferring technology, promoting technological learning and industrial development and jump-starting the process of economic diversification and structural transformation. Ethiopia, along with other African countries, is among the latest to introduce IPs as major drivers of economic diversification and export-led industrialisation. As a newcomer, Ethiopia can learn many valuable lessons from more successful cases. This chapter explores some of the lessons that Ethiopia can draw from other countries’ experience as it continues to build additional parks to attract investment and push its industrialisation agenda.

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.

This paper furthers the analysis of patterns regulating capitalist accumulation based on a historical anthropology of economic activities revolving around and within the Mauritian Export Processing Zone (EPZ).

This paper uses fieldwork in Mauritius to interrogate and critique two important concepts in contemporary social theory – “embeddedness” and “the informal economy.” These are viewed in the wider frame of social anthropology’s engagement with (neoliberal) capitalism.

A process-oriented revision of Polanyi’s work on embeddedness and the “double movement” is proposed to help us situate EPZs within ongoing power struggles found throughout the history of capitalism. This helps us to challenge the notion of economic informality as supplied by Hart and others.

Scholars and policymakers have tended to see economic informality as a force from below, able to disrupt the legal-rational nature of capitalism as practiced from on high. Similarly, there is a view that a precapitalist embeddedness, a “human economy,” has many good things to offer. However, this paper shows that the practices of the state and multinational capitalism, in EPZs and elsewhere, exactly match the practices that are envisioned as the cure to the pitfalls of capitalism.

Setting aside the formal-informal distinction in favor of a process-oriented analysis of embeddedness allows us better to understand the shifting struggles among the state, capital, and labor.

The Northeast of the People's Republic of China is now termed the “rustbelt” of the country: there is a need to reform and restructure enterprises in the region. China's major industrialization is underway elsewhere, with factories located in coastal area and primarily oriented towards exports into global markets. In the meantime the original primary industrial base in Northeast has been almost been forgotten.

This preliminary mapping and tentative analysis of the Chinese rustbelt is based on intensive field interviews in three major cities in Northeast China – Dalian, Changchun and 1Harbin. The empirical results are complemented with official statistics and other government information. This research paper is a first attempt to take stock of the remaining technological and industrial structures that exist in the area and how they can become revitalized to service the overall economy.

This paper provides a preliminary examination of the possibility of using the region's strong higher education base to develop new high technology industries. It argues that this is a possible option for the future.

The information and analysis provides insights into a region of China not well‐known to the rest of the world, which has many challenges, but also many opportunities.

These zones offer participants a wide variety of incentives and can be found in sizes ranging from a few square acres to entire large cities. The diversity among SEZs presents an opportunity for new research.

Special economic zones (SEZs) have grown exponentially in popularity during the past few decades, in size and scope. They are often lauded as instruments central to enhancing economic growth in developing countries. However, the empirical evidence on the relationship between SEZs and growth is inconclusive.

The analysis concludes that corruption leads to the creation of smaller zones that are likely the products of rent-seeking.

The authors argue that SEZs can be effective vehicles for rent-seeking, especially geographically small zones and develop an empirical model to explore the relationship between zone size and the impetus for the zone creation, namely corruption. Specifically, the authors analyze whether these small zones are vehicles of economic growth or manifestations of country wide corruption.

This paper aims to examine the impact of oil prices on trade's sensitivity to distance. Furthermore, it seeks to investigate if the nature of trade and the type of goods have a mediating role on the oil prices' impact on trade.

A set of gravity models are estimated on a unique panel dataset from China Customs Statistics that reports trade by customs regime (processing trade vs non‐processing trade) and by transportation mode (air vs sea) for the years 1988‐2008.

Higher oil prices increase the sensitivity of China's exports to distance. This effect is especially pronounced for processing exports, where goods cross borders multiple times. On the other hand, it is smaller for exports shipped by air. While these results are statistically significant, their economic effects are relatively small. This paper estimates that the quadrupling of oil prices between 2002 and 2008 has increased the elasticity of Chinese exports with respect to distance by a mere 5‐7 per cent.

The surge of oil prices in recent years has led to speculation that rising transportation costs could end the period of dramatic world trade growth – in the words of Rubin, “[…] Your world is going to get a whole lot smaller.” This paper suggests that this concern is overstated.

This is the first paper that estimates the mediating role that the nature of trade and the type of goods play on trade's sensitivity to distance.

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.