서강대학교

초록/요약

Export Processing Zone (EPZ) has been a popular research topic in development and regional economics and for many major international organizations such as the World Bank and the United Nations. In fact, many countries such as Korea and China during the 1970s have benefited from establishing these “geographically-designated areas” to encourage export-oriented manufacturing in order to promote domestic economic growth. One of the activities that many developing countries like the Government of Ethiopia is undertaking is to boost industrial development by building industrial zones that are suitable for establishing medium and large-scale industries. The Government intends to draw lessons from other countries that have successfully implemented export processing zones as part of their industrial development strategy. A good example of a country that developed its industrial base by establishing industrial zones is South Korea. The government of South Korea starting from the early 1960s has established industrial zones as part of its strategy to shift towards export promotion strategy. Several policy measures were made to realize this new direction. By the 1990s and 2000s, South Korea has become one of the fastest growing economies in the world with only less than 2 percent of its population living on less than one dollar a day. The industrial sector was solely responsible for creating high demand for labor, and thus rapid expansion of employment, increasing income and reducing poverty. The Industrial sector also enabled productivity to rise, and increased innovative ability and adaptation of technology, all of which have contributed to continued fast growth registered by South Korea. South Korea is therefore, an ideal country for Ethiopia to learn from among others. Accordingly, this study aims to examine the South Korean experience in the operationalization of industrial zones as one of the strategies to promote industrial development and distill some lessons and best practices that could be adapted to the Ethiopian context so as to enable the country to reap the benefits of rapid industrialization.