India has specific laws for its sezs the category sez covers a broad range of more specific zone types, including freetrade zones ftz, export processing zones epz, free zones fz, industrial estates ie, free ports, urban enterprise zones and. Policymakers across developing economies are implementing different forms of special economic zones sezs. 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. Policy on development of special economic zones in south. Sezs are exempt from federal laws regarding taxes, quotas, fdibans, labour laws and other restrictive laws in order to make the goods manufactured in the sez at a globally competitive price. The special economic zones sezs have been in existence for decades but have attracted renewed attention only in recent year. Over the decades, the universe of special economic zones sezs has become. M302 l7646 the gazette of pakistan extraordinary published by authority islamabad, thursday, september, 2012 part 1 act, ordinances, presidents orders and regulations national assembly secretariat. Special economic zones sezs are geographically designated areas set aside for specifically targeted economic activities. Certain goods not to be taken into or stored in special economic zones. Disposal of goods abandoned in special economic zones. This paper generically uses the term special economic zone to encompass.
Jamaica special economic zones authority facilitating. Foremost, the special economic zones especially the first several successfully tested the market economy and new institutions and became role models for the rest of the country to follow. Declaration of developer and benefits part 5 trade certificate. The act commenced in february 2016 and several sezs have been designated since.
Doing special economic zones right international growth centre. Pdf a study on special economic zones sez in tamilnadu. Aqaba special economic zone authority socio economic enablers enabling government processes regulatory responsibility asezasez. 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 special economic zone sez is an area in which the business and trade laws are different from the rest of the country.
An act to provide for the establishment of the zimbabwe special economic zones authority and to provide for the functions thereof. In these geographically delimited areas, governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support. Our thanks to kit mattock and cliona mhogain for excellent research assistance. Special economic zones sezs chinapakistan economic. 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. The role and effectiveness of special economic zones in. The paper was prepared as part of the unuwider research programme entitled learning to compete l2c. The objective was to provide an internationally competitive environment for exports that would in turn earn precious foreign exchange for india. Special economic zone, industrial park, industrial development, industrialization. Special economic zones sezs have contributed to economic development in several countries, while being utterly unsuccessful in others. 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 purpose of attracting foreign direct investment in economic activity that could not otherwise. Others include freetrade areas, industry parks, technical innovation parks and bonded zones that facilitate experimentation and innovation over a wide range of industries.
Special economic zones sezs have become an increasingly popular instrument to. Special economic zone deemed to be outside of the islands part 4 special economic zone development and operation 12. Special economic zone in terms of subsection 8 of section 3 shall be the following, namely. Special economic zones are intended to function as zones of rapid economic growth by using tax and business.
Industrialization is expected to be an important catalyst in increas. Be it enacted by parliament in the fiftysixth year of the republic of india as follows. Prior to its substitution, clause a reads as under. Special economic zones world bank documents world bank group. 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. Pdf it has been more than 50 years since the establishment of the first modern special economic zones. A robust political economy is one that channels the actions of selfinterested individuals with limited information to promote economic progress. The initiative is geared towards achieving continued growth. Welcome to special economic zone sez india was one of the first in asia to recognize the effectiveness of the export processing zone epz model in promoting exports, with asias first epz set up in kandla in 1965. Although the performance of many zones remains below expectations, failing either to. Free economic zone colon free zone, panama domestic, reexport entrepot and traderelated. There are some 5,400 zones across 147 economies today, up from about 4,000 five years ago, and.
Many sezs offer a liberalized business climate and lower taxes and tariffs. Special economic zones international growth centre. The jseza was established in 2016 under the special economic zones act. Enterprise licence corporate entity carrying out business in a special economic zone.
This paper is an attempt to understand why some zone schemes succeed and others fail in promoting economic growth. The world bank uses the term sez to encompass a variety of types of economic. Special economic zone chinese economics britannica. Processing zones epzs, are geographic areas within a country where specific economic. This paper is a first attempt to apply a robust political economy framework to explain when special economic zones sezs can contribute to economic development. Peter warr and jayant menon asian development bank. Sezs are spreading rapidly around the world special economic zones sezs are widely used in most developing and many developed economies. Some are designated geographical spaces where special policies and measures support specific economic functions. The political economy of special economic zones journal. Special economic zones sezs or industrial parks can be an effective. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives. Western balkan economies underwent a structural shift from. World investment report chapter 4 special economic zones.
Special economic zones sezs, previously also known as export. Areas declared as a special economic zones may be designated. Chinas special economic zones and industrial clusters. A special economic zone sez is a geographical region that has economic laws that are more liberal than a countrys domestic economic laws. Western balkan economies underwent a structural shift from consumptionfuelled to investmentbased and exportoriented growth. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. Tanzanias objective is to become a middle income, semiindustrialized nation by 2025.
The impacts of special economic zones evans school of. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. What is sez a special economic zone sez is a geographical region that is designed to export goods and provide employment. While there is some concentration in certain states.
The special economic zones act 16 of 2014 provides for the designation, promotion, development, operation and management of sezs. The special economic zones sezs programme is one of the most critical instruments that can be used to advance governments strategic objectives of industrialisation, regional development and job creation. Progress, emerging challenges, and future directions. With a view to overcome the shortcomings experienced on account of the. A number of incentives will be available to ensure sezs growth. 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. Chapter 4 chinas investment in special economic zones in africa 69.
How can africa ensure success for special economic zones. Until now, the special economic zone has been located in more than 5 countries around the world. View special economic zones research papers on academia. However the success in promote the trade goods and service differs. One of these measures included the creation of special economic zones in the mexican southeast. Despite three decades of research on economic zones, many important questions remain unanswered. The role and effectiveness of stateowned export processing zones epz and special economic zones sez in tanzania is examined in this paper. Dealing with or disposal of goods in special economic zones.
Special economic zones an indian perspective a introduction the sez policy was first introduced in april 2000, as a part of the exportimport exim policy of india. Special economic zones act, 2012 as amended up to 31st december 2015. Special economic zones as a tool for economic development. Development of industrial park on pakistan steel mills land at port qasim near karachi.
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