Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174914
Authors: 
Defever, Fabrice
Reyes, José-Daniel
Riaño, Alejandro
Sánchez-Martín, Miguel Eduardo
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6791
Abstract: 
Special economic zones (SEZ), one of the most important instruments of industrial policy used in developing countries, often impose export share requirements (ESR). That is, firms located in SEZ are required to export more than a certain share of their output to enjoy a wide array of incentives – a practice prohibited by the World Trade Organization’s Agreement on Subsidies and Countervailing Measures. In this paper we exploit the staggered removal of ESR across products and over time in the SEZ of the Dominican Republic - a reform driven by external commitments to comply with WTO disciplines on subsidies - to evaluate how ESR effect export performance at the product- and firm-level. Using customs data on international trade transactions from the period 2006 to 2014, we find that making the Dominican SEZ regime WTO-compliant made SEZ more attractive locations for exporters to be based in. The reform, however, did not have a significant effect on the country’s exports nor on the share of export value originating from SEZ.
Subjects: 
special economic zones
export share requirements
export subsidies
agreement on subsidies and countervailing measures
Dominican Republic
JEL: 
F12
F13
O47
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.