Contribution of Export Processing Zone for Regional Development: With Special Reference to Biyagama Export Processing Zone

Export Processing Zones could be identified as a strategy used by the developing countries to minimize the adverse impacts caused by regional disparities. Biyagama Export Processing Zone (BEPZ) has been established within Biyagama Divisional Secretariat Division (DSD) to overcome the backwardness of development it had for a long period. The objective of this study is to identify the regional development impacts of BEPZ on the Biyagama DSD through the development of infrastructure and employment generation. The sample of 100 residents has been selected through simple random sampling for the questionnaire survey. Other than that, interviews and direct observation method has been utilized for primary data collecting and web sites of relevant authorities, books, and institutional reports have been used for collecting secondary data. Map analysis and Shift Share analysis have been used to identify the contribution of the zone for the regional development. Infrastructure facilities such as road networks, electricity and water supply, educational facilities, and telecommunication facilities have been developed with the establishment of the BEPZ. Living standards of the people in the area have been developed as a result of the indirect employment opportunities created after the establishment of the zone. The majority of the females are engaged in indirect employment activities. As a result, female empowerment is high within the Biyagama DSD. The contribution of the BEPZ for the generation of direct employment opportunities is also at an optimum level. The establishment of the Export Processing Zone results in the social, economic, cultural, environmental, and regional changes within the area. Hence it can be recognized as the major contributor to the development of Biyagama region.