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      No. 10 ~ February 1992

      TOWARD ECONOMIC GROWTH AND INDEPENDENCE:
      ESTABLISHMENT OF FREE EXPORT PROCESSING ZONES IN ISRAEL

      by Meir Eldar


      TABLE OF CONTENTS

      Introduction
      PART ONE: The Current Stagnation of the Israeli Economy

      1. The Slowdown and Halt of Economic Growth
      2. Failure to Restart Economic Growth
      3. The Turnabout of Growth - Deindustrialization and Failure to Attract Foreign Investment
      4. Hong Kong and the Republic of South Korea - A Comparison
      5. Obstacles Imposed on Industrial Investment
        The Intangible Price
        The Visible Price
      PART TWO: The Free Export Processing Zone in Theory and Practice
      1. FEPZs - Structure and Operation
      2. FEPZs - Benefits to Israel and to DFI in Israel
        The Enclave Effect
        Foreign Investment Effect
        Export-Oriented Industrialization
        Direct Effects
        Indirect Effects
        Export Earnings Effects
      3. Post-War Experience and the Origin of FEPZ
        Taiwan - The Export Processing Zones
        Mexico - The Maquila
      PART THREE: Adaptability of the FEPZ to the Israeli Socio-Economic Structure
      1. "Divisibility," Export-Orientation and DFI Attraction
      2. Profitability to all Parties: The Investor, the Economy and the Region
      3. Free Export Processing Zones Bill

      NOTES

      APPENDIX

        The "Free Export Processing Zone" (FEPZ) Law
        List of Tables