Free Trade Zones

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category ‘SEZ’ covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others.Special Economic Zone (SEZ) policy is also one of the steps India has taken to boost economic growth through outward looking approach. Special economic zone is a specifically duty fee enclave and shall be deemed to be foreign territory for the purpose of trade operations and duties and tariffs.lt examines the determinants of investment and export performance empirically within the theoretical framework provided by the new growth theories. SEZ's will be the driving force towards a new era of high growth, a new mantra for filling the ‘gaps’ in economic reforms.

The success of Software Technology Parks (STPs) in the 1990s encouraged the Government of India to announce the scheme of Special Economic Zones (SEZs) as part of the Export-Import Policy in March 2000, to be effective from April 2000 to achieve a three-fold objective of increasing exports, accelerating the country’s economic growth, and attracting foreign direct investment (FDI). This scheme was continued in the ForeignTrade Policy 2004-2009, and aimed at providing a globally competitive, conducive, and free atmosphere for exports, and attracting domestic and foreign investments. The SEZ concept, as distinguished from the earlier patterns of Export Processing Zones (EPZs) and 100 per cent Export Oriented Units (EOUs) recognises the issues related to economic development, and provides for developing self-sustaining industrial townships along with the major industrial belts, so as to minimise pressure on the existing infrastructure of nearby settlements. This is true of multi-product SEZs where the area acquired is large, and not in case of other patterns, where the area is relatively small. SEZs are duty-free insulated enclaves of development, and are deemed to be non-domestic tariff areas for purposes of trade operations, and duties and tariffs. They allow 100 per cent FDI in the development of SEZs and their infrastructure facilities. Unlike EPZs, SEZs can now be developed by the public, private, joint sector or by the State governments. The Centre acts as a facilitator by providing the framework for establishing the SEZs, and monitoring the performance, and fulfilling the norms expected of SEZs to serve the national, state, and local economy. The policy offers several fiscal and regulatory incentives far beyond those covered in the earlier patterns, to developers of SEZs as well as to manufacturing and service enterprises promoted within the zones, and for the development of infrastructure.

Many developing countries operate geographically delineated economic areas in the form of export processing zones, special industrial zones, or free trade zones. This paper provides an overview of the application of World Trade Organization disciplines to incentive programs typically employed by developing countries in connection with such special economic zone programs. The analysis finds that the disciplines under the Agreement on Subsidies and Countervailing Measures have the most immediate relevance for middle-income World Trade Organization members that are not exempt for certain grandfathered programs, but will also concern other developing countries in the future, as their exemption expires or their per-capita income passes a threshold of US$1,000. Incentives related to special economic zones can be broadly grouped into three categories: (i) measures that are consistent with the World Trade Organization, notably exemptions from duties and taxes on goods exported from special economic zones; (ii) measures that are prohibited or subject to challenge under World Trade Organization law, notably export subsidies and import substitution or domestic content subsidies; and (iii) and measures where World Trade Orgainzation consistency depends on the facts of the particular case. The paper provides a set of recommendations on how to eliminate questionable incentives. The single most important zone policy reform to achieve World Trade Organization compliance is to remove all requirements to export and permit importation of goods manufactured in special economic zones into the national customs territory without any restrictions other than the application of import duties and taxes.

This study aims to explore and identify key past research directions and propose future research avenues related to the legal framework of free trade zones (FTZs). The bibliometric data were collected through the Scopus and Web of Science (WoS) database systems. After merging the datasets and filtering English-language publications from 2004 to 2024, a total of 103 documents were retained. The research methodology employed in this study includes descriptive statistics and keyword co-occurrence analysis, supported by the VOSViewer software. The findings reveal that China is the leading country in publishing research on the legal aspects of FTZs. Past studies have formed four clusters corresponding to four fundamental research directions. They include (1) Arbitration and dispute resolution in China’s free trade areas; (2) The impact of international trade laws and regulations on risk assessment and tax systems in global trade, including FTZs; (3) The role of financial and governance regulations in pilot FTZs; and (4) The legal framework and impact of FTZs in Shanghai and special economic zones on international trade. This study contributes evidence showing that China is a pioneering country in researching, developing, and refining legal policies for free trade zones in order to enhance its impact on the global economy. AcknowledgmentsThe authors would like to thank the Editor-in-Chief and a reviewer for their helpful comments, which, in our view, have significantly improved the quality of the manuscript. This study is also the result of collaboration between researchers from the University of Law, Hue University, and Duy Tan University. The authors would like to thank both institutions for their support and facilitation in the publication of this research.

This study aims to evaluate the free trade zone system that has been carried out with the planned implementation of special economic zones in Batam City. The economic downturn in the city of Batam has made stakeholders think again about the concept of free trade zone (ftz) or Free Port and Free Trade Zone. The FTZ concept is deemed no longer compatible with the current flow and competitiveness of change. For this reason, the central government offers the concept of special economic zones (KEK) to revive the passion of economic growth in this Industrial City. However, in the implementation there were many criticisms made by the community, especially businessmen who considered SEZ not to answer the problems that exist in Batam's economic growth. This study uses a qualitative approach to see each perception from stakeholders (stakeholders) to be a consideration in making decisions. Based on the results of the analysis, it was found that it was important that all stakeholders would sit together to discuss the good about the economy. The government must prioritize a bottom-up approach to find solutions to problems regarding the polemic of the best economic system problems for Batam City.

India has used export processing zones as a development strategy since the mid 1960s. The performance of these zones did not meet expectations and, in 2001, the government changed the rules and the name, and recast them as special economic zones. Indian special economic zone policy was formulated to facilitate the private development of big industrial townships. This is a significant departure from the typical export zone model, where governments usually develop the zone and invite entrepreneurs to start firms within it. However, the zone policy is unlikely to achieve its objective because of land acquisition problems. This paper analyses the effect of land laws such as land ceiling and land use clauses, and the political nature of land dealings in the context of special economic zone development in India, and concludes that private land acquisition is not possible with the current structure of land laws in India, and that this is a primary problem for the private development in special economic zones in India.

Research Article| August 01 1997 Proximity and Complementarity in Hong Kong-Shenzhen Industrialization Weiping Wu Weiping Wu Search for other works by this author on: This Site PubMed Google Scholar Asian Survey (1997) 37 (8): 771–793. https://doi.org/10.2307/2645449 Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Share Icon Share Twitter LinkedIn Tools Icon Tools Get Permissions Cite Icon Cite Search Site Citation Weiping Wu; Proximity and Complementarity in Hong Kong-Shenzhen Industrialization. Asian Survey 1 August 1997; 37 (8): 771–793. doi: https://doi.org/10.2307/2645449 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAsian Survey Search This content is only available via PDF. Copyright 1997 The Regents of the University of California Article PDF first page preview Close Modal You do not currently have access to this content.

Since China decided to establish special economic zones (SEZs) in the cities of Shenzhen, Zhuhai, and Shantou in Guangdong province and in the city of Xiamen in Fujian province, the question of the nature of the SEZ economy has been a matter of constant concern. In academic circles it has brought about broad discussion with widely divided opinion. Some say the SEZ economy is capitalist in nature; some say it is socialist. There are also some who say it is New Democratic in nature. Still others consider it to be state capitalist in nature, or basically state capitalist. The question of how to recognize correctly the nature of the SEZ economy has important practical significance in regard to the implementation of this important policy decision by the Central Committee, and in regard to further emancipating our thought, strengthening our confidence, and pushing ahead with the construction of the SEZs. For this reason, it is necessary to engage in a theoretical discussion of this matter. This essay will addre...

Purpose– The purpose of this study was to explore the impact of the formation of industrial clusters on the obtainment of professional human resources, to verify the impact of human resources on clustering relationships and firm’s performance and to understand whether the formation of clusters can contribute to the obtainment of professional human resources and the improvement of competitiveness of enterprises. It was expected that solutions could be found to make new contributions through the verification of special economic zones (SEZs).Design/methodology/approach– Using manufacturers in Taiwan’s SEZs as the subjects, this study explored the impact on the obtainment of professional human resources after the formation of industrial clusters in SEZs, through conducting and empirical study with a questionnaire survey.Findings– The professional human resources are the essential factor for the formation of industrial clusters and the improvement of competitiveness. This study also confirmed that industries can have professional human resources by industrial clustering and that this will produce a positive impact on the enterprise clustering relationships, which can also have a positive impact on firm’s performance and can enhance the enterprise’s competitive advantage.Practical implications– Industrial clustering is the key factor to attract professional human resources; industrial clusters can enhance firm’s performance; and professional human resources affect firm’s performance of enterprises.Originality/value– No study has discussed the topic of clusters from the perspective of SEZs also including six export processing zone (EPZ) parks in Taiwan. This study discussed the topic using theories relating to clustering and human resources. The formation of industrial clusters can result in higher competitiveness in the face of the global market. The EPZ industrial cluster provides an excellent investment environment. Coupled with one-stop express services and geographic advantage, the land-use rate is up to 97 per cent and the per hectare output value amounts to NTD 3.2 billion, setting a successful example of an industrial cluster.

In Kenya, free zones take the form of Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and are offered a myriad of fiscal and non-fiscal incentives. At the same time, Kenya, as a member of the World Trade Organization (WTO), is a signatory to the Agreement on Subsidies and Countervailing Measures (ASCM), which prohibits subsidies that are contingent on export performance or use of domestic over imported products. Although free zones are not mentioned specifically, fiscal incentives constitute subsidies since they are financial contributions, incomes or price supports given by the government or their agencies which confer benefits. In this regard, the article examines whether the fiscal incentives offered in Kenya's free zones meet the specificity test and are therefore consistent with the provisions on prohibited and actionable subsidies under the ASCM. The conclusion is that though the fiscal incentives offered in Kenya's free zones constitute financial contributions, they meet the specificity test and are consistent with ASCM rules on subsidies contingent on export performance and use of domestic over imported products, given that Kenya is allowed to grant export subsidies and none of the subsidies offered under the EPZs Act and SEZs Act require the use of domestic over imported products.

In late 1990s, the real significance of Special Economic Zones (SEZs) became effective. At that time, eight kinds of SEZs were focused on the implementation of economic reforms introduced during the next three decades after 1970s. Meanwhile, these zones have become the most attractive regions for foreign investments in Mainland China because importing and exporting goods are not as strictly regulated by customs and provides a tax heaven for firms who are involved in the Asia Pacific. Specifically, 15 bonded zones that aimed at driving regional development and optimizing soft environment of investment in China have been set up across the country. These SEZs share the characteristics of enjoying the most beneficial economic policies regime as well as the highest level of market liberalization, which are virtual factors of gaining acceptance from global trading partners of China. This model triggered the economic growth of China in the aftermath of the WTO accession, reflecting the procedure of China’s exploration to stimulate domestic economy, while stepping into the global trade. A key feature shown from the very beginning was the high engagement in trade and manufacture sectors. In fact, services carry with them the nonphysical feature; this has always resulted into a biased view that services were both non-storable and non-tradable, and finally constraining the entire system to an effective service development. In the attempt to address the difference underlying the types of SEZs, Economic and Technological Development Areas, Bonded Zones, and Free Trade Zones (FTZs) will be discussed.

Special economic zones, as the breakthrough points for the Chinese reform and opening-up, began the journey of exploring the path of China’s institutional changes. They constitute an imposed institutional arrangement that breaks the status of balance under the traditional system and makes the unbalanced development the best path selected for China’s institutional changes. The brilliant achievements of typical special economic zones represented by Shenzhen embody the “backwash effect”, the “spread effect” and the “trickle-down effect” in the traditional theory of regional economics by the “Chinese” mechanism in a “non-classical” manner, and interpret the unique path of China’s institutional changes. The transition from typical empirical special zones to special economic zones in a broad sense and then to the establishment and formation of free trade zones and bay areas, which are the extended forms of special economic zones, is the result of organically integrating “gradient development” and “reverse gradient development” and the harvest of institutional changes. The trajectory of the institutional changes reflects the internal logic of special economic zones and institutional changes, and constitutes the theoretical mechanism.

Facing to the increasingly complex international environment and the new normal of China's economic growth, the pilot of free trade zone is an important measure for China to further deepen reform and opening up. Promoting trade liberalization is an important part of the construction of the free trade zone. Based on the city panel data from 2004 to 2018, this paper analyzes the trade effects of 11 free trade zones established in 2017 and before by using the method of period by period did. Also the trade effect of each free trade zone is analyzed separately by the method of synthetic control.The results show that, firstly, the free trade zone has obvious trade promotion effect on total trade and export trade, but not on import trade. Second, the trade promotion effect of the pilot free trade zone is not significant in the eastern region, but there is an obvious trade promotion effect in the central and western regions. Thirdly, the analysis of each pilot free trade zone also shows some heterogeneity. Generally speaking, the trade effect of export is greater than that of import.Specifically speaking, the pilot free trade zone shows certain heterogeneity, which may be related to the local economic development level and econnmic scale.

This paper highlights the territorial importance of the presence of SEZs (Special Economic Zones) and FTZs (Free Trade Zones), the effects generated in macroeconomic terms, and the relevance of some contextual variables. Some research questions were asked regarding how relevant the presence or absence of SEZs/FTZs is for the purposes of attracting Foreign Direct Investments, the consequent income generated by them, the impact on foreign trade, and on the "quality of exports". These elements are investigated to detect the magnitude of the importance of the presence of SEZs/FTZs, along with a positive and welcoming context represented by variables like GDP (Gross Domestic Product), population, taxation burden, and port endowment, which are sometimes taken for granted and not quantified jointly econometrically.

Subject. The article investigates the impact of industrial-type special economic zones on the development of the region. Objectives. The purpose of the study was to conduct a statistical analysis of the main indicators of the activity of industrial and production special economic zones, identify benefits for their residents. Methods. I employed methods of comparative and dynamic analysis, multivariate nonparametric analysis. Results. The study examines conditions for the functioning of special economic zones. The paper presents a rating of industrial and production special economic zones based on integral assessment of their performance efficiency, which I proposed. According to the rating, the special economic zone "Togliatti" is among Top 5. Its main directions of development include attracting new residents, developing infrastructure, improving investment appeal. To implement the latter direction, the experience of establishing tax rates and rental benefits for residents of special economic zones, occupying higher positions in the compiled rating, can be applied. Conclusions. Special economic zones form the basis for successful socio-economic regional development. The Samara region has significant potential for economic growth in the special economic zone.