These areas are designed to encourage overseas investment in china and boost the countrys economic growth. Duqm sez when completed, the duqm sez will be one of the biggest economic zones in. A case study of tianjin, peoples republic of china. A comparative analysis of effective free trade zone. The world bank uses the term sez to encompass a variety of types of economic. Kigali special economic zone impacts rwandas industrial. Introduction 47 historical development of free zones in honduras 48.
The free zone authorities boast onestopshop incorporation procedures, shortening business setup to under three weeks, making a sohar company registration worth considering. Over the decades, the universe of special economic zones sezs has become. This issue brief covers the history and recent upsurge of interest in special economic zones sez in the dprk. The ghana free zones authority gfza was established on 31st august, 1995 by an act of parliament1995 act 504, to enable the establishment of free zones for the promotion of economic development.
As of today, there are about 30 free economic zones fez in the uae. African free zones africa economic zones organization. For over twenty years, north korea has periodically attempted to bolster its economy through the creation of sezs, starting with the establishment of the rason special economic zone in the far northeast of the country in 1991. These include export processing zones epzs, industrial estatesparks free zones, commercial free zones, enterprise zones, agricultural zones and investment zones. The political economy of special economic zones journal of.
Free zones goods do not enjoy the national treatment and the preferential certificate of origin. Free ports free port or port zone or port or airport special economic zone is one of the most expansive types of sez. The promises and challenges of special economic zones. Policy on development of special economic zones in south. The president assented to the special economic zone act, 2015. Korean free economic zones by region 2017 statista. A case study of tianjin, peoples republic of china submitted to the combined faculties for the natural sciences and for mathematics of the ruprechtkarls university of heidelberg, germany for the degree of doctor of natural sciences submitted by.
Full text views reflects the number of pdf downloads, pdfs sent to. Impact of special economic zones on employment, poverty. Free economic zone colon free zone, panama domestic, reexport entrepot and traderelated activities free trade zone support trade size free zone lat krabang industrial estate, thailand export and domestic market manufacturing, other processing size free zones to special economic zones. Free economic zones and tax facilities at present, there are six fezs and one international free port named giurgiulesti registered in moldova. The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured. Special economic zones progress, emerging challenges, and future directions thomas farole, gokhan akinci editors directions in development. View special economic zones research papers on academia. The african leaders of economic zones and free zones engaged their collective knowledge, through africa economic zones organisation aezo, providing strategic and technical assistance, identifying business opportunities. Also known as free trade zones are called different names around the world, including. Free trade zones, export processing zones, special economic zones, specialized zones economic zones. The term sez here covers a broad range of zones, such as free trade zones, exportprocessing zones, industrial parks, economic and technology development zones, hightech zones, science and innovation parks, free ports, enterprise zones. This paper is a first attempt to apply a robust political economy framework to. Special economic zones sezs or industrial parks can be an effective.
As used in china, however, the term sez refers to a complex of related economic activities and services rather than. Korean free economic zones kfezs area in south korea in 2017, by region in square kilometers. Policymakers across developing economies are implementing different forms of special economic zones sezs. Africa economic zones organisation have multiplied around the world since the 1980s, mainly in response to the wave and changes in global trade and industrial value chain. The challenges are many but the rewards can be high. Some are designated geographical spaces where special policies and measures support specific economic functions. Regulation on free customs zones established on the territory of free economic zones. While the old free zone was often described as static, labourintensive, incentive driven, the new zone paradigm is a dynamic investmentintensive, management driven one, enabling an integrated economic development tool.
Special economic zones sezs or industrial parks can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. While epzs and freeport zones are stipulated in detail in the. Special economic zones sezs can be regarded as an investment in industrial infrastructure and a services provider to attract and facilitate foreign investment, integrate local firms into global value chains, promote exportoriented growth and generate employment. Others include free trade areas, industry parks, technical innovation parks and bonded zones that facilitate experimentation and innovation over a wide range of industries. Salvador, industrial free zones in ghana, camroon and jordan, special export processing zones in philippines and free economic zones in russia armas and sadnijallab 2002. Free port economic zone is typical in promoting activities related to. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support are widely used across most developing and many developed economies. International business district through attraction of the united states gale company investment capital to the free economic zone, 50%2.
The kfezs have become even more attractive to global investors who knock on the korean door first when seeking opportunities in asia. The objectives of this paper are to study the significance of free economic zones from a global perspective based on experiences and hen ce to make suggestions for improving the present scenario. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. Ghana, the free zones act 1995 act 504, an act to enable the establishment of free zones in ghana for the promotion of economic development. Box 857, liberty, tx 77575 john hebert 936 3367311 fax 936 3369285 houston ftz no. From free zones to special economic zones the uae case study. African countries have sought to replicate the success of east asia by implementing special economic zones sezs. This paper generically uses the term special economic zone to encompass the range of modern free zone types worldwide1. Although the performance of many zones remains below expectations, failing either to. In india, they are called special economic zones sezs. Special economic zone sez is an administratively separated part of polish territory where investors may run their business activity based on specific preferential conditions. The first two free economic zones were opened in 1996 in the. States promoting zones have sought to stimulate economic development both within and outside the zone. Oman industrial free trade zones healy consultants.
Free trade zones, typically located near seaports or airports, mainly offer exemptions from national import and export duties on goods that are reexported. The world free zones organization world fzo is a global notforprofit organization. Special economic zones sezs are generally defined as geographically delimited areas administered by a single body, offering certain incentives duty free importing and streamlined customs procedures, for instance to businesses that physically locate within the zone. Special economic zones act, 2005 it is defined as an act to provide for the establishment, development and management of the special economic zones for the promotion of exports and for matters connected therewith or incidental thereto. Special economic zone, industrial park, industrial development, industrialization. Special economic zone sez is a specifically delineated duty free. Pdf the evolution of free economic zones and the recent. Pdf on oct 14, 2009, xiangming chen and others published the evolution of free economic zones and the recent development of. There is a big variation of special economic zones sezs. Special economic zone sez is a specifically delineated duty free enclave, which shall be deemed to be a foreign territory for the. Trade in counterfeit goods and free trade zones evidence. Midan city development project, located in the northeast yedanpo area of the yeongjong district, is the free economic zone s first. A special economic zone sez is a piece of serviced land, typically industrial, that provides. Modern zones can be catalysts for wimodern zones can be catalysts for wider national policy and economic reformder national policy and economic reform key emerging lessons 6 zones are not a panacea to be used to solve all problems many have failed zones are proliferating they are not just located in the developing world.
Designing economic zones for effective investment promotion. These preferential rules are presented in the graph below. Website of the directorate for public governance at the oecd, a source of policy solutions, data, expertise and good practice. Despite decades of international experience, there is still no blueprint for successful sez policies, and the majority of sezs fall well below expectations. The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity. Free zones generally fall into one of four categories. As one example, he described how mexicos maquiladoras duty free export processing zones absorbed excess labour supply after the u. These include 21 agroindustrial economic zones, 216 it parks and centres, 64 manufacturing economic zones, 19 tourism economic zones, and two medical tourism zones as of may 2015. Ghana free zones authority looking beyond the horizon. The sez scheme introduced by the government of india in april 2000 has its genesis in.
One of the key initiatives is the promotion of special economic zones, a recognition that export processing zones have not had the expected impact on the economy. Overview of special economic zones special economic zones sezs are generally defined as geographically delimited areas administered by a single body, offering certain incentives duty free importing and streamlined customs procedures, for instance to businesses that physically locate within the zone. Pdf during the past few decades, free trade zones ftz have become a growing phenomenon as well as an important element of world trade. The political economy of special economic zones lotta moberg geroge mason university, fairfax, va, usa email. This chapter argues that this is largely due to flaws in the political economy of sez schemes, which prevent replication of. Exportoriented production is the main goal of such zones. Experience gained in the development of chinas special economic zones, china development bank continued from page 1 existing sezs in china in 2014, there were 6 sezs, 14 open coastal cities, 4 pilot free trade areas and five financial reform pilot areas.
Chinas special economic zones sez are areas in which foreign and domestic companies can trade and invest without the same control and regulations from beijing as other parts of china. Free economic zones fez, free economic territories fets or free zones fz are a class of special economic zone sez designated by the trade and commerce administrations of various countries. Special economic zones open knowledge repository world. Free economic zones fez a successful solution for your business. Special economic zones can be characterised as a geographically delineated area subject to differentiated regulation and administration from the host country in which it resides, for the purpose of attracting foreign direct investment in economic activity that could not otherwise. The special economic zones trouble shooting committee sez tsc, which is located at the cdc, has a duty to promptly settle all issues occurring in the sez, whether pertaining to technical or legal aspects, or issues under the joint jurisdiction of ministries or institutions and beyond the competence of the sez administration or the csezb. The first two free economic zones were opened in 1996 in the capital city of chisinau and southern town of tvardita.
Free port economic zone is typical in promoting activities related to trade in goods or service. In general, however, the estimated more than 2 700 free zones in. Chapter 3 success and stasis in honduras free zones 47. The basic idea is to establish the zones as areas where export production could take place free from all roles and regulations governing imports and exports and to give them operational flexibility. Chinas special economic zones and industrial clusters. Presidential decree on the establishment of fezs of march 20, 1996 114 on free economic zones in the republic of belarus.
The sez program is aimed at attracting foreign direct investment fdi to increase firmlevel investment and improve firmlevel productivity by enhancing firmlevel coordination, networks. Free zones duty free zones free ports foreigntrade zones export processing zones special economic zones industrial free zones export free zones qualifying industrial zones. Currently the eac partner states are at different stages of developing and implementing various special economic zone sez schemes including export processing zones epzs, free trade zones, free zones, industrial parks and freeport zones. The term sez covers a broad range of zones, such as free trade zones, exportprocessing zones, industrial parks, free ports, enterprise zones, and others. As one example, he described how mexicos maquiladoras dutyfree export processing zones absorbed excess labour supply after the u. Free economic zones fez in uae united arab emirates. Free zones can be defined in many different ways, but are generally. Oct 07, 2019 available to download in png, pdf, xls format. The united arab emirates is a union of seven thriving emirates of abu dhabi, ajman, dubai, fujairah, rasalkhaimah, sharjah and umm al quwain.
Special economic zones as a tool for economic development. Dfi financing has been found to becorrelated with effective results in sezs ciip, 2017. The political economy of special economic zones journal. Special economic zones sezs scheme in india was conceived by the commerce and. A special economic zone sez refers to designated areas in countries with special economic regulations that differ from other areas in the same country. Historical development of free zones in honduras 48 performance 49 key success factors 54 challenges for the future 61 conclusion 65 notes 67 references 68. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Philippines economic zone authority peza alone owns three ecozones and administers the incentives for over privately300 managed zones. The evolution of free economic zones and the recent development of crossnational growth zones. By examining the economic decisions women make as they go through different stages of their working lives and the pace of reforms over the past 2 years, women, business and the law makes an important contribution to research and policy discussions about the state of womens economic opportunities and empowerment. Liberty county economic development foreigntrade zone 171 p. In december 1982 the montego bay convention jamaica on the law of the sea was signed. Professor riano argued that sezs should aim to relieve particular economic distortions, rather than try to provide an economic panacea.