ABSTRACT
In this research project Export Processing Zone (EPZ) is defined as zone designed and designated by the Government of a nation, to attract local foreign investment towards industrial development of export purposes. EPZ enterprises and developers enjoy a liberal operating environment with range of incentive provided by the EPZ Act (such as long period of tax holiday, high quality infrastructural at the zone etc) which enterprises outside the zone do not enjoy at the same rate.
Enterprises and projects to be operated within EZP are usually assessed based on the job creation, non-traditional export product development, technology transfer and training of workers, incremental productive investment and backward linkage with the nation economy. EZP Calabar is used in this project as a case study to appraise the impact of EZP in economic integration of West African countries.
The dissertation has focused on making theoretical and practical contribution to the impact of EZP not only in the West African sub region but generally in countries of the world, this study has been designed to weigh the costs relative to benefits of an EZP as a tool for economic development.
Various relevant literature, on ideas, studies and write-ups were used for this research topic, they were all blended together under different headings in the study to shed light on the impact of export: processing zones towards the economic development of a nation.
Specific; issues were dealt with such as re-statement of the research questions, the research design, characteristics of the study population, population and sampling, techniques of data collection, questionnaire assumption, questionnaire administration concept of reliability and procedure for processing and analyzing data.
Special analysis of the quest were made and the responses obtained in view of the need to answer the research questions were developed in chapter one of this study using percentage calculation as mat tools hr. analysis.
Various findings, suggestions and recommendations of immense benefits were revealed in the last chapter of this dissertation.
This study is a worthwhile exercise, knowledge impact, having theoretical and practical significance, which has provided insight on the Calabar EZP as a tool in fostering economic integration among countries of West African sub-region.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
This study is aimed at showing the impact of export processing zones on the economic integration of West African Countries.
Export Processing Zones have been given various terminologies, as perceived and understood by various countries and institutions all over the world (but with the same trade idea in mind). The traditional term since nineteenth century is 'Free Trade Zone'. UNCTAD, USAID, and United Arab Emirates call it Free Zone'. Harvard University World Export Processing, Zone Association (WEPZA) and the World Bank call it Export Processing Zone'. The Organization for Economic Co-operation and Development (OECD) calls it Free Export Processing Zone.
Since the 1980s, EPZs have been promoted as a way of industrializing through export processing EPZ countries (of which Nigeria is one) are usually those with many people employed in agriculture, exporting low value agricultural goods, with high unemployment, local production for local markets, low levels of foreign investment and economic stagnation.
Embracing EPZ idea signal that a country is replacing in inward-looking development strategy based on import substitution with an outward oriented development path. The World Bank see EPZs as a first step towards greater economic liberalization, to integrate protected countries into world markets EPZs are thus one part of a broader program of liberalizing economies to global competition and free trade.
In 1970, about 50000 workers were employed in EPZs worldwide. By 1990, their number was estimated to be up to 3.5 million (ILOIUNCT AD Geneva 1988, SATUCC/TARSC, 1996). Differing figures are a result of different EPZ definitions. Some consider only fenced off EPZs and others such as that of the World Export Processing Zone Association (WEPZA) include "all government authorized areas such as tree ports, free trade zones, customs free zones, industrial free zones and foreign trade zones".
Generally speaking, an Export Processing Zone is a trade zone designed and designated by the government of a nation, to attract local and foreign investment towards industrial development for export purposes. EPZ enterprises and developers enjoy a liberal operating environment with range- of incentives provided by the EPZ Act (such as long period of tax holiday, high quality infrastructure at the zone, etc) which an enterprise outside the zone does not enjoy at the same rate.
Enterprises and projects to be operated within the EPZ are usually assessed based on job creation, non-traditional export product development, technology transfer and training of workers, incremental productive investment and backward linkage with the nation's economy.
In view of the above background, this study is designed to use the EPZ Calabar to measure the extent of' economic integration and development of West African countries as a result of the zone.
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