Investor Presentaiton
Free Trade Zones & Nigeria Tax Regime
Cost Benefit Analysis (CBA)
- Costa Rican Study:
-
"Very few successful FTZ experiments in the world."
CBA of FTZS success in shift of FDI towards high skill operations providing
employment opportunities in higher productivity/wage activities.
Linkage effects: 150 local firms producer/suppliers to MNCs in FTZs.
(Increasing firms' competitiveness by drawing them into global markets;
"indirect exporters"). Relationships result in improvements in product quality.
- Almost 50% of FDI to Costa Rica came in through FTZ program.
-
-
- 200 FTZ enterprises in 2000, up from 56 in 1990.
8% contribution to GDP in 2003 (compared with 0.5% in 1990).
53.7% of Costa Rican exports in 2003 (1990, 6.5%).
Workers employed by MNCs in FTZs: 7,000 in 1990 vs. 35,000 in 2002. 16%
relative weight in overall industrial employment in Costa Rica as at 2002.
- 17% real wage growth between 1990 - 2002 attributable to growth in demand
for labour by MNCs who pay 20% higher than locals. Equivalent to $836
million additional income.
28% of owners, 36.2% of managers, 28% of engineers and 31% of technicians
working for local firms had previously worked for MNCs.
The Net Direct Benefit (NDB) of FTZs amounted to $727.2 million in 2002.
«
In general terms, the investment that the country has made to attract FDI and to
administer the system has been more than compensated by the direct benefits flowing from
the operation of MNCs operating in the FTZs."
TEMPLARSView entire presentation