The Role of Export Processing Zones in Development and International Marketing Strategy

Export Processing Zones (EPZs) are areas within developing countries where business is offered special incentives and a barrier-free environment in order to promote economic growth by attracting foreign investment for export-oriented production. Most developing countries now have EPZs, and the number of zones, number of firms operating within them, and volume of business are growing rapidly. Yet studies of the EPZ phenomenon by business researchers are virtually non-existent, leading to poor understanding of its role in international marketing. This paper draws from the economics literature to provide an integrative review of the EPZ concept, discusses its importance for host nations and international business, and provides suggestions for future research.