Export processing zone-industrial zonewithspecialincentivesset up to attractforeign investors, in which importedmaterials undergosomedegreeofprocessingbefore being re-exported.
China is home to a burgeoning solar industry, due to generous government subsidies for electricity, exportincentives, and tariff protections from foreign competition.
New research by Mihir Desai of Harvard University and James Hines of the University of Michigan examines the perverse fusion of exportincentives and corporate income tax in America.