Skip to content
BY 4.0 license Open Access Published by De Gruyter Open Access June 17, 2020

Labor standards and social conditions in free trade zones: the case of the Manaus free trade zone

  • Louisiana Cavalcanti Teixeira EMAIL logo
From the journal Economics

Abstract

The creation of the Manaus Free Trade Zone had a development purpose in the Brazilian political, economic and social scenario between 1960 and 1970. This industrial pole was an important device in achieving the desired development, populating a region considered deserted and exposed to external threats at that time. It has guaranteed the improvement on labor standards and social conditions in the Manaus’ district and has become the main driving force behind regional employment, higher salaries and growth over the past decades. Using the residuals and the stochastic frontier techniques to estimate the labor and social performances of the Manaus Free Trade Zone, the analysis confirms that the implementation of the special economic zone collaborated to labor and social efficiency in the area – compared to other important industrial Brazilian municipalities – due to the rigid checks conducted by SUFRAMA and the strict respect of labor standards applied in the MFTZ. Nevertheless, economic linkages in the region are still weak and positive spillovers from Manaus to its surroundings were probably inexistent.

JEL Classification: F12; F13; F14

References

Aggarwal, A. (2007). Impact Of Special Economic Zones On Employment, Poverty And Human Development. Working Papers id:1111, eSocialSciences. urlhttps://ideas.repec.org/p/ess/wpaper/id1111.html.Search in Google Scholar

Aggarwal, A. (2012). Social And Economic Impact Of SEZs In India. Number 9780198077275 in OUP Catalogue. Oxford University Press. urlhttps://ideas.repec.org/b/oxp/obooks/9780198077275.html.10.1093/acprof:oso/9780198077275.001.0001Search in Google Scholar

Aigner, D., Lovell, C., and Schmidt, P. (1977). Formulation And Estimation Of Stochastic Frontier Production Function Models. Journal of Econometrics, 6(1): 21–37. urlhttps://EconPapers.repec.org/RePEc:eee:econom:v:6:y:1977:i:1:p:21-37.Search in Google Scholar

Baldwin, R. (2013). Trade And Industrialization After Globalization’s Second Unbundling: How Building And Joining A Supply Chain Are Different And Why It Matters, pages 165–212. University of Chicago Press. urlhttp://www.nber.org/chapters/c12590.Search in Google Scholar

Boyenge, J.-P. S. (2007). ILO Database On Export Processing Zones (Revised). ILO Working Papers 993989593402676, International Labour Organization. urlhttps://ideas.repec.org/p/ilo/ilowps/993989593402676.html.Search in Google Scholar

Buitelar, R., Urrutia, R., and Padilla, R. (1999). Industria Maquiladora Y Cambio Tecnico. Revista CEPAL, (67): 133–152. urlhttps://repositorio.cepal.org/bitstream/handle/11362/12172/067133152_es.pdf?sequence=1&isAllowed=y.Search in Google Scholar

Busso, M., Gregory, J., and Kline, P. (2013). Assessing The Incidence And Efficiency Of A Prominent Place Based Policy. American Economic Review, 103(2): 897–947. urlhttp://www.aeaweb.org/articles?id=10.1257/aer.103.2.897.Search in Google Scholar

Castilho, M. R., Melo, H. P., and Di Sabbato, A. (2010). Um Olhar De Genero Sobre O Setor Eletro-Eletronico Da Zona Franca De Manaus. In I. E. (Org.) (Ed.), Um olhar de genero sobre o setor eletro-eletronico da Zona Franca de Manaus, pages 11–54. 1 edition. urlhttp://www.equit.org.br/novo/wp-content/uploads/2013/03/um-olhar-de-genero-sobre.pdf.Search in Google Scholar

Castilho, M. R., Menendez, M., and Sztulman, A. (2015). Poverty And Inequality Dynamics In Manaus: Legacy Of A Free Trade Zone? Working Papers DT/2015/18, DIAL (Developpement, Institutions et Mondialisation). urlhttps://ideas.repec.org/p/dia/wpaper/dt201518.html.Search in Google Scholar

Cling, J.-P., Razafindrakoto, M., and Roubaud, F. (2005). Export Processing Zones In Madagascar: A Success Story Under Threat? World Development, 33(5): 785–803. urlhttps://ideas.repec.org/a/eee/wdevel/v33y2005i5p785-803.html.Search in Google Scholar

Defever, F., Reyes, J. D., Riano, A., and Sanchez-Martin, M. E. (2018). Special Economic Zones And Their Compliance With Wto Subsidy Rules. Discussion paper, Latin America and Caribbean Economic Association.Search in Google Scholar

Defever, F., and Riano, A. (2017). Subsidies With Export Share Requirements In China. Journal of Development Economics, 126(C): 33–51. urlhttps://ideas.repec.org/a/eee/deveco/v126y2017icp33-51.html.Search in Google Scholar

Farole, T. (2011). Special Economic Zones: What Have We Learned? Discussion paper 64, The World Bank.10.1596/978-0-8213-8763-4Search in Google Scholar

Farole, T., and Akinci, G. (2011). Special Economic Zones: Progress, Emerging Challenges, And Future Directions. Directions in development and trade. Washington, DC: World Bank.Search in Google Scholar

Fias (2008). Special Economic Zones: Performance, Lessons Learned, And Implications For Zone Development. Discussion paper, The Multi-Donor Investment Climate Advisory Service, The World Bank, Washington DC, USA.Search in Google Scholar

Freitas Pinto, R. (1987). Como Se Produzem As Zonas Francas. (mineo), UFPA/Naea, Belem (PA), Brasil.Search in Google Scholar

Ham, J. C., Swenson, C., Imrohoroglu, A., and Song, H. (2011). Government Programs Can Improve Local Labor Markets: Evidence From State Enterprise Zones, Federal Empowerment Zones And Federal Enterprise Community. Journal of Public Economics, 95(7): 779–797. urlhttps://ideas.repec.org/a/eee/pubeco/v95y2011i7p779-797.html.Search in Google Scholar

Heller, J., and Kauffman, K. (1963). Tax Incentives For Industry In Less Developed Countries. Law School of Harvard University. urlhttps://books.google.fr/books?id=lEEwAAAAMAAJ.Search in Google Scholar

Kumbhakar, S., and Lovell, C. (2000). Stochastic Frontier Analysis. Cambridge University Press. urlhttps://doi.org/10.1017/CBO9781139174411.10.1017/CBO9781139174411Search in Google Scholar

Kuznets, S. (1971). Economic Growth Of Nations: Total Output And Production Structure. Belknap Press of Harvard University Press. urlhttps://books.google.fr/books?id=bjB7Ad8in4MC.10.4159/harvard.9780674493490Search in Google Scholar

Meeusen, W., and Broeck, J. V. (1977). Efficiency Estimation From Cobb-Douglas Production Functions With Composed Error. International Economic Review, 18(2): 435–444. issn 00206598, 14682354. urlhttp://www.jstor.org/stable/2525757.Search in Google Scholar

Naughton, B. (2007). The Chinese Economy: Transitions And Growth. The Chinese Economy. MIT Press. urlhttps://books.google.fr/books?id=BZv6AQAAQBAJ.Search in Google Scholar

Picarelli, N. (2014). Who Really Benefits From Export Processing Zones? Evidence From Nicaraguan Municipalities. Mimeo, London School of Economics.Search in Google Scholar

Ravallion, M. (2003). In Measuring Aggregate “Social Efficiency”. Policy Research Working Paper Series 3166, The World Bank. urlhttps://ideas.repec.org/p/wbk/wbrwps/3166.html.10.1596/1813-9450-3166Search in Google Scholar

Siroen, J.-M. (2012). Core Labour Standards And Exports. Working paper UMR 225 DT/2012-18, DIAL - Universite Paris-Dauphine/IRD, Paris, France.Search in Google Scholar

Siroen, J.-M., and Yucer, A. (2014). Trade Performance Of Free Trade Zones. Working paper 2014-09, DIAL - Universite Paris-Dauphine/IRD, Paris, France.Search in Google Scholar

Siroen, J.-M., Yucer, A., and Archanskaia, E. (2014). World Ftz Database. Discussion paper. urlhttp://ftz.dauphine.fr.Search in Google Scholar

Taques, F. H., and Piza, C. T. (2009). Curva De Kuznets: Mensuracao Do Impacto Do Crescimento Economico Sobre A Desigualdade De Renda Para Os Estados Brasileiros (1995–2005). In XIV Encontro Regional de Economia do Nordeste. Fortaleza, CE.Search in Google Scholar

Teixeira, L. C. (2013). A Zona Franca De Manaus: Evolucao E Resultados. Monografia (bacharel em economia), Universidade Federal do Rio de Janeiro, Rio de Janeiro (RJ), Brasil.Search in Google Scholar

Teixeira, L. C. (2014). Export Processing Zones In Madagascar: The Impact Of The Dismantling Of Clothing Quotas On Employment And Labor Standards. Mini-memoire, Universite Paris-Dauphine, Paris, France.Search in Google Scholar

Received: 2019-11-06
Revised: 2019-03-25
Accepted: 2020-04-03
Published Online: 2020-06-17
Published in Print: 2020-12-01

© 2020 Louisiana Cavalcanti Teixeira, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Downloaded on 29.3.2024 from https://www.degruyter.com/document/doi/10.5018/economics-ejournal.ja.2020-19/html
Scroll to top button