A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increasing trade balance, employment, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays, where upon establishing themselves in a zone, they are granted a period of lower taxation.
The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment (FDI).[1][2] The benefits a company gains by being in a special economic zone may mean that it can produce and trade goods at a lower price, aimed at being globally competitive.[1][3] In some countries, the zones have been criticized for being little more than labor camps, with workers denied fundamental labor rights.[4]
The definition of an SEZ is determined individually by each country. According to the World Bank in 2008, the modern-day special economic zone typically includes a "geographically limited area, usually physically secured (fenced-in); single management or administration; eligibility for benefits based upon physical location within the zone; separate customs area (duty-free benefits) and streamlined procedures."[5]
Historyedit
Modern SEZs appeared from the late-1950s in industrial countries. The first was in Shannon Airport in County Clare, Ireland.[6] Some tax-free jurisdictions such as the Cayman Islands offer technology companies a way to keep their IP offshore in a Special Economic Zone (see Cayman Enterprise City).
From the 1970s onward, zones providing labour-intensive manufacturing have been established, starting in Latin America and East Asia. The first in China following the opening of China in 1979 by Deng Xiaoping was the Shenzhen Special Economic Zone, which encouraged foreign investment and simultaneously accelerated industrialization in this region.[7]: 50–51 These zones attracted investment from multinational corporations[1] and allowed export-oriented Chinese businesses to respond quickly to demand in foreign markets.[7]: 50 China continues to maintain Special Economic Zones and certain open coastal areas. Most of China's SEZs are located in former treaty ports and therefore have symbolic significance in demonstrating a "reversal of fortunes" in China's dealings with foreigners since the century of humiliation.[7]: 51 Researcher Zongyuan Zoe Liu writes that "[t]he success of these cities as 'red' treaty ports represented another step in China's overall reform and opening-up plan while legitimizing the leadership of the CPC over the Chinese state and people."[7]: 51
Numerous African countries have set up SEZs in connection with China,[2] including over the period 1990 to 2018 establishing SEZs in Nigeria (two), Zambia, Djibouti, Kenya, Mauritius, Mauritania, Egypt, and Algeria.[8] Generally, the Chinese government takes a hands-off approach, leaving it to Chinese enterprises to work to establish such zones (although it does provide support in the form of grants, loans, and subsidies, including support via the China Africa Development Fund).[8] The Forum on China-Africa Cooperation promotes these SEZs heavily.[8]
Typesedit
The term special economic zone[9][10] can include:[1][11]
^ abcd"Special Economic Zones Progress, Emerging Challenges, and Future Directions" (PDF). Washington DC: The International Bank for Reconstruction and Development/The World Bank. 2011. Retrieved 25 May 2014.
^ abWoolfrey, Sean (2013). "Special economic zones and regional integration in Africa" (PDF). Trade Law Center. Retrieved 25 May 2014.
^"Goldman Sachs says reforms to create 110 mn jobs for economy in 10 yrs". Business Today. 29 March 2014.
^Watson, Peggy (23 July 2012). "Sackings expose the harsh reality of Poland's junk jobs". The Guardian.
^ ab"Zone Definition", Special Economic Zone: Performance, Lessons Learned, and Implication for Zone Development, Washington DC: World Bank, 2008, pp. 9–11
^"Political priority, economic gamble". The Economist. 4 April 2015
^ abcdLiu, Zongyuan Zoe (2023). Sovereign Funds: How the Communist Party of China Finances its Global Ambitions. The Belknap Press of Harvard University Press. doi:10.2307/jj.2915805. ISBN9780674271913. JSTOR jj.2915805.
^ abcMurphy, Dawn C. (2022). China's rise in the Global South : the Middle East, Africa, and Beijing's alternative world order. Stanford, California: Stanford University Press. p. 177. ISBN978-1-5036-3060-4. OCLC 1249712936.
^УПРАВЛЕНИЕ ОСОБЫМИ ЭКОНОМИЧЕСКИМИ ЗОНАМИ СУБЪЕКТА РФ Масаев С.Н. В сборнике: XIII Всероссийское совещание по проблемам управления ВСПУ-2019 Труды. Под общей редакцией Д.А. Новикова. 2019. С. 1773–1778.
^Masaev S. Destruction of the Resident Enterprise in the Special Economic Zone with Sanctions. Publisher: IEEE. 2019
Chee Kian Leong, (2007) A Tale of Two Countries: Openness and Growth in China and India, Dynamics, Economic Growth, and International Trade, DEGIT Conference Paper
Chee Kian Leong, (forthcoming) Special economic zones and growth in China and India: an empirical investigation, International Economics and Economic Policy. link
Thomas Farole, (2011) Special Economic Zones in Africa: Comparing Performance and Learning from Global Experiences, Washington, DC, World Bank
Jarosław M. Nazarczuk, Stanisław Umiński, (2019) Foreign Trade in Special Economic Zones in Poland, UWM w Olsztynie, Olsztyn link pdf
External linksedit
Шмонов Н.Н. «Историческое исследование проблем развития особых экономических зон»
Indian Special Economic Zones
Export Processing Zones Authority Pakistan
Open Joint Stock Company "Special Economic Zones" (Russia) 28 January 2010 at the Wayback Machine
special, economic, zone, redirects, here, airport, seychelles, international, airport, confused, with, exclusive, economic, zone, special, economic, zone, area, which, business, trade, laws, different, from, rest, country, sezs, located, within, country, natio. SEZ redirects here For the airport see Seychelles International Airport Not to be confused with Exclusive economic zone A special economic zone SEZ is an area in which the business and trade laws are different from the rest of the country SEZs are located within a country s national borders and their aims include increasing trade balance employment increased investment job creation and effective administration To encourage businesses to set up in the zone financial policies are introduced These policies typically encompass investing taxation trading quotas customs and labour regulations Additionally companies may be offered tax holidays where upon establishing themselves in a zone they are granted a period of lower taxation The creation of special economic zones by the host country may be motivated by the desire to attract foreign direct investment FDI 1 2 The benefits a company gains by being in a special economic zone may mean that it can produce and trade goods at a lower price aimed at being globally competitive 1 3 In some countries the zones have been criticized for being little more than labor camps with workers denied fundamental labor rights 4 Contents 1 Definition 2 History 3 Types 4 See also 5 References 6 Further reading 7 External linksDefinition editThe definition of an SEZ is determined individually by each country According to the World Bank in 2008 the modern day special economic zone typically includes a geographically limited area usually physically secured fenced in single management or administration eligibility for benefits based upon physical location within the zone separate customs area duty free benefits and streamlined procedures 5 History editModern SEZs appeared from the late 1950s in industrial countries The first was in Shannon Airport in County Clare Ireland 6 Some tax free jurisdictions such as the Cayman Islands offer technology companies a way to keep their IP offshore in a Special Economic Zone see Cayman Enterprise City From the 1970s onward zones providing labour intensive manufacturing have been established starting in Latin America and East Asia The first in China following the opening of China in 1979 by Deng Xiaoping was the Shenzhen Special Economic Zone which encouraged foreign investment and simultaneously accelerated industrialization in this region 7 50 51 These zones attracted investment from multinational corporations 1 and allowed export oriented Chinese businesses to respond quickly to demand in foreign markets 7 50 China continues to maintain Special Economic Zones and certain open coastal areas Most of China s SEZs are located in former treaty ports and therefore have symbolic significance in demonstrating a reversal of fortunes in China s dealings with foreigners since the century of humiliation 7 51 Researcher Zongyuan Zoe Liu writes that t he success of these cities as red treaty ports represented another step in China s overall reform and opening up plan while legitimizing the leadership of the CPC over the Chinese state and people 7 51 Numerous African countries have set up SEZs in connection with China 2 including over the period 1990 to 2018 establishing SEZs in Nigeria two Zambia Djibouti Kenya Mauritius Mauritania Egypt and Algeria 8 Generally the Chinese government takes a hands off approach leaving it to Chinese enterprises to work to establish such zones although it does provide support in the form of grants loans and subsidies including support via the China Africa Development Fund 8 The Forum on China Africa Cooperation promotes these SEZs heavily 8 Types editThe term special economic zone 9 10 can include 1 11 Free trade zones FTZ Export processing zones EPZ Free economic zones FZ FEZ Industrial parks estates IE Free ports Bonded logistics parks BLP Urban enterprise zonesWorld Bank special economic zone types 5 Type Objective Size Typical Location Typical Activities MarketsFTZ Support trade lt 50 hectares 120 acres Port of entry Entrepots and trade related Domestic re exportEPZ traditional Export manufacturing lt 100 hectares 250 acres None Manufacturing processing Mostly exportEPZ single Unit free enterprise Export manufacturing No minimum Countrywide Manufacturing processing Mostly exportEPZ hybrid Export manufacturing lt 100 hectares 250 acres None Manufacturing processing Export domesticFree port SEZ Integrated development gt 1 000 hectares 2 500 acres None Multi use Internal domestic exportUrban enterprise zone Urban revitalization lt 50 hectares 120 acres Urban rural Multi use DomesticSee also editList of special economic zones by country Exclusive economic zone Urban enterprise zone Four Asian Tigers Free economic zoneReferences edit a b c d Special Economic Zones Progress Emerging Challenges and Future Directions PDF Washington DC The International Bank for Reconstruction and Development The World Bank 2011 Retrieved 25 May 2014 a b Woolfrey Sean 2013 Special economic zones and regional integration in Africa PDF Trade Law Center Retrieved 25 May 2014 Goldman Sachs says reforms to create 110 mn jobs for economy in 10 yrs Business Today 29 March 2014 Watson Peggy 23 July 2012 Sackings expose the harsh reality of Poland s junk jobs The Guardian a b Zone Definition Special Economic Zone Performance Lessons Learned and Implication for Zone Development Washington DC World Bank 2008 pp 9 11 Political priority economic gamble The Economist 4 April 2015 a b c d Liu Zongyuan Zoe 2023 Sovereign Funds How the Communist Party of China Finances its Global Ambitions The Belknap Press of Harvard University Press doi 10 2307 jj 2915805 ISBN 9780674271913 JSTOR jj 2915805 a b c Murphy Dawn C 2022 China s rise in the Global South the Middle East Africa and Beijing s alternative world order Stanford California Stanford University Press p 177 ISBN 978 1 5036 3060 4 OCLC 1249712936 UPRAVLENIE OSOBYMI EKONOMIChESKIMI ZONAMI SUBEKTA RF Masaev S N V sbornike XIII Vserossijskoe soveshanie po problemam upravleniya VSPU 2019 Trudy Pod obshej redakciej D A Novikova 2019 S 1773 1778 Masaev S Destruction of the Resident Enterprise in the Special Economic Zone with Sanctions Publisher IEEE 2019 Economic Zones in the ASEAN PDF United Nations Industrial Development Organization 2015 p 26 archived from the original PDF on 30 September 2020 retrieved 16 September 2016Further reading editChee Kian Leong 2007 A Tale of Two Countries Openness and Growth in China and India Dynamics Economic Growth and International Trade DEGIT Conference Paper pdf Chee Kian Leong forthcoming Special economic zones and growth in China and India an empirical investigation International Economics and Economic Policy link Thomas Farole 2011 Special Economic Zones in Africa Comparing Performance and Learning from Global Experiences Washington DC World Bank Jaroslaw M Nazarczuk Stanislaw Uminski 2019 Foreign Trade in Special Economic Zones in Poland UWM w Olsztynie Olsztyn link pdfExternal links editShmonov N N Istoricheskoe issledovanie problem razvitiya osobyh ekonomicheskih zon Bangladesh Export Processing Zone Authority BEPZA South Kazakhstan Ontustyk special economic zone Indian Special Economic Zones Export Processing Zones Authority Pakistan PEZA Philippines website India Special Economic zones map Open Joint Stock Company Special Economic Zones Russia Archived 28 January 2010 at the Wayback Machine U S S R Special Economic Zones 1 India Citizens group demand moratorium on SEZs OneWorld South Asia Retrieved from https en wikipedia org w index php title Special economic zone amp oldid 1184902085, wikipedia, wiki, book, books, library,
