The Foreign-Trade Zone and its Impacts on Neighboring Communities in Mobile, Alabama

Abstract

abstract: The foreign-trade zone (FTZ) has become an essential part of national trade policy in the United States and an important aspect of promoting local development. Officially opened in its current form in 1983 under the official title of FTZ No. 82, the foreign-trade zone in Mobile, Alabama has become an integral part of the local economy and an important tool used by local councils for attracting overseas firms. Located primarily along the west banks of the Mobile Bay and Mobile River, with several sites dispersed throughout Mobile and Baldwin counties, the zone has been used as a catalyst for regional economic growth policy. The purpose of this study is to analyze the external costs and benefits to the local community using observational data and interviews with local authorities familiar with the zone. Qualitative findings indicate the zone has been a major source of foreign direct investment for Mobile and contributes to local economic development by attracting major transnational firms to the city. However, observations and interviews suggest the zone has primarily benefited large firms at the expense of smaller firms, provided little spillover into neighboring boroughs, and adversely affected the local environment and public health.