Development of industrial park on pakistan steel mills land at port qasim near karachi. Pdf the role and effectiveness of special economic zones. 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. What is special economic zones sez explain role of. The special economic zones act, 2005, was passed by parliament in may, 2005 which received presidential assent on the 23rd of june, 2005. Promoting and marketing sezs to potential developers. Sezs have played a significant role in economic enrichment of developing countries, by improving international business. Role of special economic zones in improving effectiveness of gms. The world is awash with freetrade zones and their offshoots. Special economic zones are intended to facilitate fast economic growth.
The routledge handbook of industry and development focuses on the role of economic zones in promoting growth in subsaharan africa. South african special economic and industrial development zones the port of durban and the southern bloemfonteincape town route, the sez is a natural choice for investors seeking a costeffective location to service domestic and export markets. Abstract ask three people to describe a special economic zone sez and three very different images may emerge. China is the best example of special economic zone. Efforts to create sezs in tanzania began in 2002, and were stepped up through the establishment of the export processing zone authority epza. Special economic zone policies provided to companies located in the specified zones for trade have both propelled growth in china and made the country extremely competitive internationally. In order words, sez is a geographical region that has economic laws different from a countrys typical economic laws. The sez scheme introduced by the government of india in april 2000 has its genesis in the export processing zone epz scheme, which was introduced way back in 1965.
The special economic zones sezs 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. Located on the mainland, the government of china grants its special economic zones sezs more free market oriented economic policies and flexible governmental measures, compared to the planned economy elsewhere. What are the roles and impact of special economic zone in. Given its geographic location, special economic zones offer a number of.
In some cases sez are fully exempted from national laws regarding corporate income taxes, labour laws and quotas and other restrictive laws. First, an industrial estate is an area consisting of many factories and business in single locality but it is relatively small area than special economic zone with limited liberal economic policies. Russian federation, technologyoriented zones also play an important role. More and more countries have begun to implement this instrument. Industrialization is expected to be an important catalyst in increas. What is special economic zones sez explain role of special economic zones sez in international business. A special economic zone sez refers to designated areas in countries with special economic regulations that differ from other areas in the same country. The role and effectiveness of special economic zones. With operational success, the role of the special economic zones has expanded from trade to investment technology, research and development, service, and training. The role of special economic zones in improving e ectiveness of greater mekong subregion economic corridors this study looks into the role of special economic zones in strengthening the competitiveness of economic corridors in the greater mekong subregion gms. The role of sezs in promoting industrial development.
Pdf a study on special economic zones sez in tamilnadu. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Eradicating poverty by accelerating economic growth and generating employment opportunities through industrialisation is a key policy priority for bangladesh. Designing economic zones for effective investment promotion. T his chapter examines the role of special economic zones across subsaharan africa in promoting employment growth, raising productivity and generating spill. A proposal for a study on the role of sezs in strengthening competitiveness of gms economic corridors was endorsed at. Created after deng xiaopings economic reforms were implemented in china in 1979, special economic zones are areas where marketdriven capitalist policies are implemented to entice foreign businesses to invest in china. The role and effectiveness of special economic zones in tanzania special economic zones sezs have been successfully used as an industrial policy tool in many countries. Special economic zone sez is a specifically delineated dutyfree enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. This allows sezs to utilize economic management which is more attractive to foreign and domestic businesses.
Special economic zone sez, any of several localities in which foreign and domestic trade and investment are conducted without the authorization of the chinese central government in beijing. The role of chinas overseas special economic zones in. In viet nam, sezs play a key role in the governments fdi attraction strategy. The jamaica special economic zones authority jseza is the agency of the government of jamaica responsible for facilitating the development of and promotion investments in special economic zones sezs in jamaica. Progress, emerging challenges, and future directions. One of the most well known sez is shenzhen special economic zone which established in 1980 2, 3. Free zones have become the center of activity in modern economy. Special economic zones as noted, the purpose of the law on special economic zones law on sez is to promote economic development in certain regions that are considered underdeveloped by increasing and attracting investments, productivity, competition, and jobs. The china model, as it has been dubbed, is being emulated by other developing countries.
The first person may describe a fencedin industrial estate in a developing country, populated by footloose multinational corporations mncs enjoying tax breaks, with laborers in garment factories working in substandard conditions. The jseza was established in 2016 under the special economic zones act. The passing of the special economic zones act the act, which effectively repealed the jamaica export free zones act, represented a major initiative. The role of special economic zones in manufacturing development. There are currently 295 industrial parks, 3 technology parks and 15 economic zones, which concentrate over 50% of total fdi. Rightmost photo shows meas sophal who works in a garment factory at the special economic zone in sihanoukville, cambodia photo by pring. Can special economic zones promote inclusive growth. More and more countries have begun to implement this. Thus, ieat is assigned by the government to develop its industrial estates in sezs, which can be summarized into 2 phases. The role and effectiveness of special economic zones in.
Special economic zones as an instrument of economic development. In india, the special economic zones sez have been in existence for decades but has attracted renewed attention only in recent years. A special economic zone sez is a geographical region that has laws and regulations that are more liberal or flexible than a countrys domestic economic and investment laws. The role of special economic zones in nationwide progress. A special economic zone is an area in a country that is subject to unique economic regulations that differ from other regions of 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 proposal for a study on the role of sezs in strengthening competitiveness of gms economic corridors was endorsed at the february 2016 gms senior officials meeting. Tanzanias objective is to become a middle income, semiindustrialized nation by 2025. Special economic zone chinese economics britannica. 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 function of special economic zones in the modernization. Generally, sez aims to enhance the prosperity of the country. We prepare and provide answer sheets, assignment solutions, project reports and thesis.
Industrial estates, industrial clusters and special economic zones are the most used concepts in this regard. Global experiences with special economic zones with a. Whats so special about the special economic zones act. There are several forms of sez depend on the establishing objectives.
A special economic zone sez is a geographical region that has economic laws more liberal than a countrys typical economic laws. These areas are designed to encourage overseas investment in china and boost the countrys economic growth. The role of special economic zones in improving effectiveness of. The government of bangladesh is setting up 100 special economic zones sezs for creating 10 million jobs. The role of the special economic zones must be further enhanced alongside our desire to put an end to the massive poverty that has long plagued our society. Sezs are zones intended to facilitate rapid economic growth by leveraging tax incentives to attract foreign dollars and technological advancement.
Usually the goal is flourishment in foreign investment. Special economic zone or sez refers to a totally commercial area specially established for the promotion foreign trade. Jamaica special economic zones authority facilitating. Special economic zones have their own management system. The role and effectiveness of stateowned export processing zones epz and special economic zones sez in tanzania is examined in this paper.
The role of sezs in promoting industrial development global africa. In india, they are called special economic zones sezs. Special economic zones sezs geographically delimited areas within which. Special economic zones sezs concept has evolved across the globe and several developing countries have adopted this policy for setup of industrial zones that focus on exports and helps in generating economic opportunity and able to attract foreign. Pdf role of special economic zone sezs in creation of. We just have to address the objective improvements being suggested in order to clearly rationalize the incentives for the business enterprises that operate in these areas. Especially in the usa, the pioneer of sez has 257 areas of ftz and 545 areas of ftz subzone 4, 5. Although the performance of many zones remains below expectations, failing either to. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. Special economic zones are intended to function as zones of rapid economic growth by using tax and business. The function of special economic zones in the modernization process of china.
South africa is investing in special economic zones sezs as a major plank of its. Special economic zones are regarded as geographically delimited area which is physically secured ganne, 2009. Special economic zones sezs chinapakistan economic. Special economic zone and their role and impact on the. 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. Reviewing applications and granting licenses to sez developers, operators and enterprises. However the success in promoting the trade differs. May 2018 a special economic zone sez is an area in which the business and trade laws are different from the rest of the country. The role of special economic zones in manufacturing. Special economic zones sezs have been successfully used as an industrial policy tool in many countries. The draft sez rules were widely discussed and put on the website of the department of commerce offering suggestionscomments. Pdf special economic zones sezs concept has evolved across the globe and several developing countries have adopted this policy for.
Special economic zones as an engine of regional economic. Theoretical framework the theoretical debate over t he concept and role of sezs in economic development, in addition to their gender, labor and environmental implications, can be grouped under two major types of analysis, as argued by farole. Special economic zone what is a sez indian economy. Since 1979, chinas special economic zones sez have been beckoning foreign investors to do business in china. The sez will be governed by the special economic zones authority authority whose roles shall be. Efforts to create sezs in tanzania began in 2002, and were stepped up through the establishment of the export processing zone. Hanoi viet nam newsasia news network although being late and facing many challenges, vietnam must dare to play and bet on the success of special economic zones read more at. The role of special economic zones asian development bank. Sez essentially worked as a liberal economic environment that encourage modernization and development within china borders. Special economic zones are intended to function as zones of rapid economic growth by using tax and business incentives to attract foreign investment and.
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