Performance of export processing zones: A comparative analysis of India, Sri lanka and Bangladesh

This study ‘Performance of Export Processing Zones: A Comparative Analysis of India , Sri Lanka and Bangladesh’ was funded by the South Asian Network of Economic Institutes (SANEI). Export processing zones have been in existence for decades but have attracted renewed attention in recent years. However, their success in promoting trade across countries is mixed. This study aims at analysing the factors that are crucial for the success of the zones. It covers three South Asian countries, namely India, Sri Lanka and Bangladesh. The study explores different aspects such as the quality of governance, incentive packages and infrastructure facilities offered by the zones. It examines the determinants of investment and export performance empirically within the theoretical framework provided by the new growth theories. Neutralization of dis-incentives, infrastructure and good governance, along with the overall
investment climate in a country are found to contribute to the success of its zones. The paper, therefore, reinforces earlier recommendations that call for the removal of red tape and bureaucracy better.