“…First, entrepreneurs located in higher-income countries who want to become important players in the international arena should locate in areas where other international players are concentrated, especially those that engage in outward FDI and international trade. From a country-level perspective, governments that hope to encourage export activities among new ventures may benefit from creating geographical zones specifically reserved for internationally oriented firms (Din 1994). Our findings imply that such zones in higher-income countries may help reduce the costs encountered by new ventures when they break into foreign markets.…”
We draw on the knowledge spillover literature to suggest that a country's proportion of export-oriented new ventures represents an outcome of knowledge spillovers that stem from foreign direct investment (FDI) and international trade (export spillovers) as well as a source of knowledge spillovers (entrepreneurship spillovers). To test the hypotheses, we use macrolevel data from 34 countries during the period 2002-2005. We find that the relationship between FDI and international trade on the one hand and a country's proportion of exportoriented new ventures on the other differs for higher-and lower-income countries. In addition, a country's proportion of export-oriented new ventures affects the subsequent emergence of new businesses.
“…First, entrepreneurs located in higher-income countries who want to become important players in the international arena should locate in areas where other international players are concentrated, especially those that engage in outward FDI and international trade. From a country-level perspective, governments that hope to encourage export activities among new ventures may benefit from creating geographical zones specifically reserved for internationally oriented firms (Din 1994). Our findings imply that such zones in higher-income countries may help reduce the costs encountered by new ventures when they break into foreign markets.…”
We draw on the knowledge spillover literature to suggest that a country's proportion of export-oriented new ventures represents an outcome of knowledge spillovers that stem from foreign direct investment (FDI) and international trade (export spillovers) as well as a source of knowledge spillovers (entrepreneurship spillovers). To test the hypotheses, we use macrolevel data from 34 countries during the period 2002-2005. We find that the relationship between FDI and international trade on the one hand and a country's proportion of exportoriented new ventures on the other differs for higher-and lower-income countries. In addition, a country's proportion of export-oriented new ventures affects the subsequent emergence of new businesses.
“…The classic EPZ models of Wei (1993) and Din, M.-u. (1994) show that under certain conditions, backward linkages can stimulate the production of intermediate inputs in the local economy, which in turn, increase national income and welfare.…”
Section: Backward Linkages and Welfare Gainsmentioning
“…Under CRS (i.e., e j = 0), w and r are not affected by an increase in V, as remarked by Din (1994). Under VRS, however, they may change depending on the degree of returns to scale.…”
Section: Definition 1 Sector 1 Is Said To Be Labor-(capital-) Intensmentioning
confidence: 70%
“…Following Din (1994), define the following relative factor intensities of the final good sectors of the economy.…”
This paper investigates the effects of forming export processing zones on factor rewards, national income, and the intermediate-good-producing sector under variable returns to scale (VRS). It is shown that the results obtained in the model under constant returns to scale are substantially modified if VRS is incorporated into the model.
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