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. Possible constraints to success of economic zones in mena 5. Website of the directorate for public governance at the oecd, a source of policy solutions, data, expertise and good practice. Oecd general recommendations on the use of economic zones 6. 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. 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. Free zones can be defined in many different ways, but are generally.
From free zones to special economic zones the uae case study. Free trade zones, also known as a free commercial zone, are a subcategory of 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. Free zone the source of socio economic benefits1 dulaborozan,professor facultyofeconomicsinosijek zeljkoklepo,m. This may have risen from practical considerations of the difficulties involved in harmonizing trade and economic policies of african countries and. Trade in counterfeit goods and free trade zones evidence. Oman industrial free trade zones healy consultants. Pdf on oct 14, 2009, xiangming chen and others published the evolution of free economic zones and the recent development of. Duqm sez when completed, the duqm sez will be one of the biggest economic zones in. 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.
Pdf free economic zones from the legal perspective in kosovo. Towards best practice guidelines for the development of economic. A comparative analysis of effective free trade zone policies. International business district through attraction of the united states gale company investment capital to the free economic zone, 50%2. The exclusive economic zone shall not extend beyond 200 nautical miles from the baselines from which the breadth of the territorial sea is measured.
It is shown that, in the presence of factor mobility between the duty free zone and the rest of the economy, the. The world free zones organization world fzo is a global notforprofit organization. A comparative analysis of effective free trade zone. The chairman of the board of directors of the special economic zone. Jul 23, 2019 these areas are designed to encourage overseas investment in china and boost the countrys economic growth. 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. These areas are designed to encourage overseas investment in china and boost the countrys economic growth. The role of free economic zones in global supply chainsa case of reverselogistics. Sustainable and special economic zone selection under fuzzy. This may have risen from practical considerations of the difficulties involved in harmonizing trade and economic policies of african countries and existing recs. 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.
Suggested elements for designing effective economic zones 7. This paper generically uses the term special economic zone to encompass. Special economic zone sez is a specifically delineated duty free. 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. 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. A case study of tianjin, peoples republic of china. 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. 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. Oct 27, 2016 korean free economic zones are specially designated areas created to improve the business and living environment for foreigninvested firms in korea.
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. The first two free economic zones were opened in 1996 in the. Midan city development project, located in the northeast yedanpo area of the yeongjong district, is the free economic zone s first. It presents the evolution of the ftzs and the international legal framework in which they operate, the reasons for establishing such zones and the. Over the decades, the universe of special economic zones sezs has become. They are usually located in areas with geographic trade advantages. The establishment of special economic zones sezs is a lengthy, expensive, and longterm orientated endeavor. 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. 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. Progress, emerging challenges, and future directions. 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. 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.
World free economic zones financial zone, economic zone, trade. From free zones to special economic zones the uae case. Korean free economic zones are specially designated areas created to improve the business and living environment for foreigninvested firms in korea. Korean free economic zonekfez promotion video eng youtube.
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. From free zones to special economic zones the uae case study presented by. Introduction 47 historical development of free zones in honduras 48. 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. This chapter argues that this is largely due to flaws in the political economy of sez schemes, which prevent replication of. Midan city development project, located in the northeast yedanpo area of the yeongjong district, is the free economic zones first international. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Way forward a handbook for economic zone development. University of prishtina hasan pris htina, economic faculty, prishtina, kosovo. Pdf the evolution of free economic zones and the recent. Pdf the role of free economic zones in global supply. African countries have sought to replicate the success of east asia by implementing special economic zones sezs. Free trade zones, export processing zones, special economic zones, specialized zones economic zones. The first two free economic zones were opened in 1996 in the capital city of chisinau and southern town of tvardita.
Special economic zones progress, emerging challenges, and future directions thomas farole, gokhan akinci editors directions in development. Although the performance of many zones remains below expectations, failing either to. Philippines economic zone authority peza alone owns three ecozones and administers the incentives for over privately300 managed zones. Zone development programmes should take a frugal approach. Free zones duty free zones free ports foreigntrade zones export processing zones special economic zones industrial free zones export free zones qualifying industrial zones. 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. Free ports free port or port zone or port or airport special economic zone is one of the most expansive types of sez. 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, previously also known as export. 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. Also known as free trade zones are called different names around the world, including.
Koreas economic zone planning office is in charge of this project. Physical infrastructure includes electricity, buildings and transport. This is a very important topic that features in the indian economy section of the upsc syllabus. Free port economic zone is typical in promoting activities related to trade in goods or service. Free port economic zone is typical in promoting activities related to. View special economic zones research papers on academia. Special economic zones sezs or industrial parks can be an effective. States promoting zones have sought to stimulate economic development both within and outside the zone. 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. 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.
Special economic zones international growth centre. Special economic zones as a tool for economic development. Chapter 3 success and stasis in honduras free zones 47. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. 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. 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 economic zones from the legal perspective in kosovo dr. 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. The role of special economic zones in improving effectiveness. 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 free zone authorities boast onestopshop incorporation procedures, shortening business setup to under three weeks, making a sohar company registration worth considering. 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. 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. World investment report chapter 4 special economic zones. Know more about sezs in india through this article. Special economic zone, industrial park, industrial development, industrialization. Special economic zone sez is an administratively separated part of polish territory where investors may run their business activity based on specific preferential conditions. Under this law, a special economic zone is defined as the zone notified and established by the. Exportoriented production is the main goal of such zones. While epzs and freeport zones are stipulated in detail in the. Sezs are spreading rapidly around the world special economic zones sezs are widely used in most developing and many developed economies. The sixth free economic zone was opened in may 2003 in ungheni. 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. Free economic zones in the world free economic zones in. This paper generically uses the term special economic zone to encompass the range of modern free zone types worldwide1.
Free zones goods do not enjoy the national treatment and the preferential certificate of origin. 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. These preferential rules are presented in the graph below. Policy on development of special economic zones in south.
There are some 5,400 zones across 147 economies today, up from about 4,000 five years ago, and. The kfezs have become even more attractive to global investors who knock on the korean door first when seeking opportunities in asia. 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. In these geographically delimited areas, governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support. Designing economic zones for effective investment promotion. 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. Kigali special economic zone impacts rwandas industrial. Regulations on special economic zones in guangdong province. 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. Zone development plans should be longterm and guided by the sez development ladder.
Gcc customs union and pafta left manufacturing enterprises located within free zones with a clear disadvantage due to the nonpreferential market access. Cheongna city tower the most advanced city tower will be located at jungang lake park. Special economic zones sezs scheme in india was conceived by the commerce and. The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity.
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