International business district through attraction of the united states gale company investment capital to the free economic zone, 50%2. The free zone authorities boast onestopshop incorporation procedures, shortening business setup to under three weeks, making a sohar company registration worth considering. Using special economic zones to drive job creation in mena by kurt dassel and kim eckermann the purpose of this paper is to provide practical, useful guidance to individuals and entities involved in the design, development and implementation of special economic zones sezs. From free zones to special economic zones the uae case study. Pdf on oct 14, 2009, xiangming chen and others published the evolution of free economic zones and the recent development of. Korean free economic zonekfez promotion video eng youtube. It presents the evolution of the ftzs and the international legal framework in which they operate, the reasons for establishing such zones and the. Lithuanias seven free economic zones are located in various locations across the country and provide unbeatable conditions for developing business by offering ready to build industrial sites with physical andor legal infrastructure, support services, and tax incentives. Gcc customs union and pafta left manufacturing enterprises located within free zones with a clear disadvantage due to the nonpreferential market access. Korea free economic zones kfez are designated to strengthen national competition for businesses and promote balanced regional development by improving living conditions and business environments for foreigners in south korea. Special economic zones sezs scheme in india was conceived by the commerce and.
Oecd general recommendations on the use of economic zones 6. Also known as free trade zones are called different names around the world, including. The sixth free economic zone was opened in may 2003 in ungheni. 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 economic zone management company made by this site uses cookies and other tracking technologies to assist with navigation and your ability to provide feedback, analyse your use of our products and services, assist with our promotional and marketing efforts, and provide content from third parties.
In general, however, the estimated more than 2 700 free zones in the world have in common that they form a designated zone in which the host countrys normal customs regimes for import and. Evolution of the china shanghai pilot free trade zone policy from the period of 1949 to some years before 1979, when mao zedong was the. Epz export processing zone err economic rate of return es enterprise survey etdz economic and technological development zone ez economic zone fdi foreign direct investment fias facility for investment climate advisory services wbg fil financial intermediary loan fiz foreign investment zone ftz free trade zone fz free zone. It is shown that, in the presence of factor mobility between the duty free zone and the rest of the economy, the. In 1999, three more zones were opened in taraclia and vulcanesti, both towns located in southern moldova, and otaci, in the north near the border with ukraine. Special economic zone sez is an administratively separated part of polish territory where investors may run their business activity based on specific preferential conditions. Free economic zones in the world free economic zones in. The establishment of special economic zones sezs is a lengthy, expensive, and longterm orientated endeavor. Special economic zone, industrial park, industrial development, industrialization. Way forward a handbook for economic zone development. 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. Chinas special economic zones sez were first developed in 1980 as part of deng xiaopings drive to open up china to the rest of the world and cement chinas place on the global stage as a major economic player. The world bank uses the term sez to encompass a variety of types of economic zones, including export processing zones epzs, free ports, enterprise zones, and financial. Special economic zones as a tool for economic development.
The first two free economic zones were opened in 1996 in the capital city of chisinau and southern town of tvardita. Pdf the role of free economic zones in global supply. Zone development plans should be longterm and guided by the sez development ladder. Special economic zones progress, emerging challenges, and future directions thomas farole, gokhan akinci editors directions in development. 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. Regulations on special economic zones in guangdong province approved for implementation at the 15th meeting of the standing committee of the fifth national peoples congress on august 26, 1980 contents chapter i general provisions chapter il registration and operation chapter iii preferential treatment chapter iv labour management. Free port economic zone is typical in promoting activities related to. These areas are designed to encourage overseas investment in china and boost the countrys economic growth. Designing economic zones for effective investment promotion. View special economic zones research papers on academia. These preferential rules are presented in the graph below. Cbfez invites foreign investors to fam tour to attract investment foreign investors visit curachem located in osong bio health science technopolis chungbuk free economic zone cbfez invited foreign investors who participated in the invest korea week 2017, an event organized by the ministry of trade, industry and energy and managed by kotra, to a fam tour on nov. The chairman of the board of directors of the special economic zone.
The purpose of the present paper is to take a first step toward a comparative inventory of free economic zones fez in the mena region with special regards to the incentives that they offer to investors. The kfezs have become even more attractive to global investors who knock on the korean door first when seeking opportunities in asia. Kigali special economic zone impacts rwandas industrial. The role of special economic zones in improving effectiveness. They are usually located in areas with geographic trade advantages. Free zone the source of socio economic benefits1 dulaborozan,professor facultyofeconomicsinosijek zeljkoklepo,m. Free zones duty free zones free ports foreigntrade zones export processing zones special economic zones industrial free zones export free zones qualifying industrial zones. Korean free economic zones are specially designated areas created to improve the business and living environment for foreigninvested firms in korea. Policy on development of special economic zones in south. Midan city development project, located in the northeast yedanpo area of the yeongjong district, is the free economic zones first international.
Jul 23, 2019 these areas are designed to encourage overseas investment in china and boost the countrys economic growth. Cheongna city tower the most advanced city tower will be located at jungang lake park. Chapter 3 success and stasis in honduras free zones 47. Sustainable and special economic zone selection under fuzzy. Free trade zones, also known as a free commercial zone, are a subcategory of special economic zones. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives. Over the decades, the universe of special economic zones sezs has become. Philippines economic zone authority peza alone owns three ecozones and administers the incentives for over privately300 managed zones. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. A special economic zone or sez is a specially marked territory or enclave within the national borders of a country that has more liberal economic laws than the rest of the country. Exportoriented production is the main goal of such 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. This chapter argues that this is largely due to flaws in the political economy of sez schemes, which prevent replication of.
Special economic zones international growth centre. 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. Introduction 47 historical development of free zones in honduras 48. 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 economic zones are often treated as an innovative topic in development economics, citywide free zones with goals and methods not too different from those employed in modern zones were in place in gibraltar and singapore as early as 1704 and 1819, respectively. Towards best practice guidelines for the development of economic. General information on myanmar special economic zones i the quantity of sezs the development of special economic zones sez in myanmar is governed by the myanmar special economic zone law of 2014. 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. Midan city development project, located in the northeast yedanpo area of the yeongjong district, is the free economic zone s first. In these geographically delimited areas, governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support. 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. Know more about sezs in india through this article. 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. The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured.
World free economic zones financial zone, economic zone, trade. World investment report chapter 4 special economic zones. Pdf the evolution of free economic zones and the recent. Special economic zones sezs, previously also known as export. This paper generically uses the term special economic zone to encompass. This may have risen from practical considerations of the difficulties involved in harmonizing trade and economic policies of african countries and. African countries have sought to replicate the success of east asia by implementing special economic zones sezs. Oman industrial free trade zones healy consultants.
Suggested elements for designing effective economic zones 7. Under this law, a special economic zone is defined as the zone notified and established by the. Special economic zone sez is a specifically delineated duty free. Sezs are spreading rapidly around the world special economic zones sezs are widely used in most developing and many developed economies. Possible constraints to success of economic zones in mena 5. Zone development programmes should take a frugal approach. 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. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Free port economic zone is typical in promoting activities related to trade in goods or service. The role of free economic zones in global supply chainsa case of reverselogistics. Free economic zones from the legal perspective in kosovo dr.
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. Physical infrastructure includes electricity, buildings and transport. Progress, emerging challenges, and future directions. General information on myanmar special economic zones. The world free zones organization world fzo is a global notforprofit organization. Pdf free economic zones from the legal perspective in kosovo.
There are some 5,400 zones across 147 economies today, up from about 4,000 five years ago, and. This may have risen from practical considerations of the difficulties involved in harmonizing trade and economic policies of african countries and existing recs. Free economic zones and tax facilities at present, there are six fezs and one international free port named giurgiulesti registered in moldova. Regulations on special economic zones in guangdong province. Free trade zones, export processing zones, special economic zones, specialized zones economic zones.
They are fencedin, duty free areas, offering warehousing, storage, and distribution facilities for trade, transshipment, and reexport operations, without the intervention of the customs authorities. Although the performance of many zones remains below expectations, failing either to. Website of the directorate for public governance at the oecd, a source of policy solutions, data, expertise and good practice. This paper generically uses the term special economic zone to encompass the range of modern free zone types worldwide1. The first two free economic zones were opened in 1996 in the. Koreas economic zone planning office is in charge of this project. Duqm sez when completed, the duqm sez will be one of the biggest economic zones in. Free ports free port or port zone or port or airport special economic zone is one of the most expansive types of sez.
Oct 27, 2016 korean free economic zones are specially designated areas created to improve the business and living environment for foreigninvested firms in korea. A special economic zone sez is a piece of serviced land, typically industrial, that provides infrastructure and connectivity for private firms investing in the sez. A comparative analysis of effective free trade zone policies. While epzs and freeport zones are stipulated in detail in the. Trade in counterfeit goods and free trade zones evidence. Free zones goods do not enjoy the national treatment and the preferential certificate of origin.
University of prishtina hasan pris htina, economic faculty, prishtina, kosovo. 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. Free zones can be defined in many different ways, but are generally. Despite decades of international experience, there is still no blueprint for successful sez policies, and the majority of sezs fall well below expectations. 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. The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity. 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. Special economic zones sezs or industrial parks can be an effective. 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. From free zones to special economic zones the uae case.
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