Local Economic Zones For Economic Development

To implement structural changes in Ukraine’s economy, merely creating equal conditions for all economic activities is insufficient. It is necessary to introduce radical economic measures and effective, internationally proven, tools for economic development. These tools can enable the country to overcome the resource curse, deindustrialization, and break out of the vicious cycle of poverty. One such tool is the establishment of special economic zones (SEZ) – geographically delineated areas within a country’s national borders or border regions of multiple countries, characterized by special, more favorable regulatory and fiscal regimes and well-developed infrastructure. In Ukraine, special economic zones suffered a reputational setback due to the illegal activities associated with the Donetsk special (free) economic zone (S(F)EZ), which generated widespread negative perceptions of this instrument. However, the experience of other zones, particularly the Transcarpathian S(F)EZ, highlights the untapped potential of this tool in attracting foreign investment, stimulating industrial activity, creating jobs, and increasing tax revenues. This underscores the need to reassess the viability of using S(F)EZs as a mechanism for Ukraine’s economic reconstruction amidst the destruction and losses caused by wartime. The purpose of the article is to substantiate the feasibility and the conditions for reviving the activities of special (free) economic zones in Ukraine as a tool for reindustrialization and structural economic transformation in the wartime and post-war context. Achieving this purpose entails a critical analysis of the experience of economic zones in Ukraine and abroad, along with consideration of contemporary global trends in their development influenced by the Fourth Industrial Revolution. The theoretical foundation of the study is based on the developmentalist tradition, A. Serra's theory of uneven economic development, and F. List's theory of economic nationalism. The article outlines the historical evolution and modern global trends in the development of special economic zones. It is determined that a new generation of special economic zones is emerging, aligned with the requirements of the Fourth Industrial Revolution. These zones are characterized by their reliance on resource-efficient, energy-saving practices and the integration of digital technologies. Two key digital technologies driving the formation of modern industrial zones are digital twins and the metaverse. The adoption of these technologies enhances the innovativeness of industrial zones by optimizing costs and reducing the time required for modeling new production processes, prototyping, product testing, real-time monitoring of production efficiency at individual stages, and addressing operational challenges. The analysis of international experience in the operation of special economic zones has revealed key lessons essential for shaping effective policies for their development. Specifically, SEZs require an incubation period of 5–10 years (or even longer in developing countries) to achieve tangible economic outcomes. State support and the clear alignment of their objectives with the country’s core interests and strategic development priorities are critical factors for success. Additionally, SEZs must account for the realities of global competition by offering investors a comprehensive set of advantages, including not only fiscal incentives but also modern infrastructure, access to a highly skilled workforce, and streamlined business processes. The legal principles underpinning the support and development of S(F)EZs in Ukraine have been analyzed in greater depth. Proposals have been developed to refine Chapter 39 of the Economic Code of Ukraine, with a focus on strengthening economic incentives for domestic and foreign investors engaged in production activities in regions located near the front line, in de-occupied territories, or in areas affected by active hostilities. Implementing these proposals will enhance the quality of managerial decision-making related to creating favorable investment and infrastructure conditions, thereby contributing to the economic reconstruction of Ukraine.

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.

Special Economic Zones (SEZs) is one of the known mechanisms to attract Foreign Direct Investment (FDI). Nevertheless, there was a global mix reaction towards its successful implementation with a few operational failures, especially in the area of its legal framework. Therefore, this paper aim is to explore the success and failure experience to be a reference for the development of Special Border Economic Zone at Bukit Kayu Hitam using qualitative textual analysis. It finds that two significant issues in SEZs; regulatory/ legal framework, and development spill-over. Keywords: Special Economic Zones; Land Use Planning Law; Policy Implementation; Bukit Kayu Hitam. eISSN: 2398-4287© 2020. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v5i14.2270

An increasing number of investors is interested in the Free Trade Zones (FTZ), which are the Special Economic Zones (SEZs) that have developed globally within recent years. However, in 1980 China led the SEZ movement by creating four free trade zones inside its territory. The first four SEZs were all based in south-eastern coastal China and were established in the cities of Shenzhen, Zhuhai, Shantou, and Xiamen. The expression “Special Economic Zone”, here after seen as SEZ, refers to a geographic region within a nation where there are fewer custom restrictions than in the rest of the country. SEZs are created to facilitate economic growth through the encouragement of direct foreign trade. FTZs and EPZs (Export Processing Zones) are more common and more easily-approved in China compared with other areas. During the 1990s, Special Economic Zones became significant especially in manufacturing sectors, encouraging investors to establish companies in these development zones thanks to incentives such as limited Corporate Income Tax (CIT fixed at 15%), triggering the economic growth of China to the WTO (2001).

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.

This thesis seeks to advance the study on China's Special Economic Zones (SEZs) by exploring two important issues untouched by previous researches --- the reasons for the problem of policy inconsistency, ambiguity and unpredictability in the SEZs, and the effectiveness and significance of their experimental function as a laboratory for China's ongoing industrial reform and open-door policy. The Xiamen SEZ, rarely investigated by Western scholars, is chosen as the object of this case study because of its unique suitability. It is hoped that the findings from this thesis will significantly enhance the understanding of the difficulty and complexity of the reform and openness in China in general and in the SEZs in particular. This thesis approaches the two issues from three perspectives, which reflect three most important relationships regarding the development of the SEZs --- the one between the economic reform and the Special Policy, the one between the local economic development and foreign direct investment (FDI), and the one between the SEZs and the domestic economy. It examines the enterprise reform, transformation of the local industry through utilizing FDI, and the relationship between the foreign trade reform and the price reform, in the Xiamen SEZ in its first decade of the 1980s. In particular, it includes a detailed analysis of the characteristics and effects of Taiwan investment in Xiamen in recent years and hence represents one of very few, if not the first, serious studies, at the moment, on the subject. It concludes that the policy problem in Xiamen has been caused mainly by 1) the confusion of the economic reform and the implementation of the Special Policy, 2) the increasing dominance of Taiwan capital on the local economy, and 3) the close institutional link between the SEZ and the domestic economy. Also, it finds that a decade of the reform and development in Xiamen has produced few innovative and applicable experiences which could benefit the domestic reform and open-door. Thus, the effectiveness and significance of the SEZ's experimental function has so far been very limited.

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.

Ethiopia’s special economic zones (SEZs) sustainability practices are aimed at achieving the country's sustainable development; however, their failure has resulted in repercussions for sustainable local community development. This study analyzed the repercussions on the sustainable development of local communities resulting from the failure of SEZs' sustainability practices, focusing on three SEZs: Eastern Special Economic Zone (ESEZ), Bole Lemi Special Economic Zone (BLSEZ), and Dire Dawa Free Trade Zone (DDFTZ). The study employed a mixed research approach with an exploratory sequential design in which the qualitative phase was carried out and analyzed using content and thematic analysis, followed by the quantitative phase using descriptive analysis and a multivariate multiple linear regression. The study found that SEZs' sustainability practices negatively contributed to the local community’s sustainable development in economic, social, environmental, and peace perspectives. The multivariate multiple linear regression results show that economic sustainability practices significantly influenced social and economic development challenges, while governance sustainability practices significantly influenced the environmental sustainability and sustainable peace of local communities. To this end, it is suggested that systemic measures should improve the sustainability practices of SEZs as they minimize the negative impacts of SEZs on the local communities' sustainable development.

Special Economic Zones (SEZ) have become investment- and industrial hubs for developing countries seeking economic growth and development since China successfully established its first economic zones in its southern region, mainly in Shenzhen, Xiamen, Shantou and Zhuhai in the 1980s. The „model‟ is sought after for application across Africa. Recently, South Africa, through its Department of Trade and Industry (DTI) has issued a draft bill which considers creating SEZs. What is the experience with SEZs in China and Africa and what are lessons from other such zones for South Africa? Special Economic Zones are designated geographic areas with specifically designated liberal commercial and economic policies aiming at attracting more foreign investments. China for many African countries is seen as an economic growth model; the „middle kingdom‟ ranks as the world‟s second largest economy. The increasing density of Sino-African relationships over the last decade has boosted investments and trade in Africa, and it has contributed to China‟s modernisation and its rise on the international scene. For example Shenzhen, which was a small village, has rapidly become a modern city right next to Hong Kong. With its Special Economic Zones, China has attracted outward Foreign Direct Investment which has enhanced the creation of employment, generated investments and technology transfer. Such success was achieved through economic reforms following the “open door” policy in the late 1970s, namely trade liberalisation and market openness, as well as extremely liberal labour regulations.

This study fills a significant research vacuum by examining the effects of Participatory Budgeting (PB) on projects inside Special Economic Zones (SEZs). The study first establishes the legitimacy of PB by highlighting its widespread recognition since its founding in 1989 and its support by powerful institutions such as the World Bank and the United Nations. Citing examples from China and Kenya, the study places the importance of SEZs in context by highlighting their critical role in economic development. It acknowledges the intricacy of the dynamics involved in decision-making in SEZ projects with various stakeholders. It points out the need for more systematic evaluations of how PB affects these procedures. The review of the literature investigates how PB might enhance inclusiveness, openness, and innovative problem-solving in SEZ decision-making. It recognizes the advantages and draws attention to drawbacks like drawn-out decision-making procedures and resistance to change. In assessing the effectiveness of PB in SEZ frameworks, the review highlights the significance of stakeholder perceptions, including those of local communities, investors, and governmental bodies. Achieving equilibrium between these disparate viewpoints is considered essential for successful integration. Using literature review, this paper’s methodology analyzes literature from reliable books, peer-reviewed journals, official websites, and Google Scholar to conduct an extensive study. The findings highlight the need for a comprehensive understanding of how PB influences decision-making in SEZ projects and show that PB’s effectiveness and the economic impact of SEZs are recognized globally. The report highlights the significance of ongoing stakeholder communication, capacity building, clear guidelines, adaptation to local contexts, and monitoring mechanisms while identifying opportunities and challenges related to PB implementation in SEZs. The study concludes by recommending a strategic approach to maximize the benefits of PB on SEZs and offering suggestions to practitioners and policymakers. This study adds to the body of knowledge on participatory governance by addressing important research questions and providing insightful information that can be used to create inclusive, open, and effective SEZ frameworks worldwide.

The Special Economic Zone Duqm (SEZD) in Oman is the largest special economic zone in the Middle East and North Africa Region allowing it to host various big projects. To ensure that the area is fit for a wide number of business activities to meet the needs of investors, area is divided into eight main areas: the heavy-medium and light industries complex, the port, the ship dry dock, the oil refinery, the tourism area, the logistic services area, the regional airport, and the residential/commercial area. SEZD has many competitive advantages to be a logistic and marine hub for Arab countries outside Strait of Hormuz. It is a hub for advanced petrochemical industry, manufacturing industry, fish industry and aquaculture projects, logistics services, educational institutions and tourism. For those seeking peace of mind and tranquility, Duqm is an ideal destination where it combines the natural beauty of the region and the modest climate around the year. SEZD provides many incentives for investors such as: exemption from profit tax for up to 30 years and renewable for similar period, 100% freehold by foreigners, easy recruitment of manpower, and imports of raw materials into the zone are tax-free. These facilities and incentives give SEZD a competitive advantage. SEZD is an ideal example of an integrated economic development zone. Government of Oman is trying to achieve the following national objectives from establishing such economic zone: first, economic diversification; second, sustainable economic growth; third, securing job opportunities; fourth, balancing Oman’s regional development; finally, increase private sector contribution to GDP.

Yesterday's solution: Do national economic and technological development zones promote industrial development in typical developing regions of China?

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.

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.