Investigation of Resiliency of Free Zones and Efficiency of These Areas with Using of DEA

Abstract

From the perspective of national and regional economic development, free zones increase trade and attract some necessary technical and capital expertise and therefore lead to the dynamics of the economy. On the other hand, the resiliency of these areas causes the free zones to observe less fluctuation over time and, therefore, will suffer less damage. Today, the concept of efficiency and effectiveness is one of the things that many economists have taken noticed. Therefore, in this study, using the indexes of Jack Burman et al. and Briguglio and window analysis, we study the resiliency and efficiency of free zones. Accordingly, using the resiliency indexes of Jack Burman et al. and Briguglio, free zones of Kish, Qeshm, Chabahar, Anzali, Arvand and Aras during 2011-2015 were evaluated and compared. The results indicated that most free trade zones have not operated in accordance with the resiliency based on the sub-indexes of exports rate, imports, ratio of exports to total, trade balance, the amount of foreign investment, domestic investment, employment, income and the number of registered companies. The results of the DEA indicated that the only Anzali free zone was functioning efficiently and the other areas were inefficient. Therefore, it is suggested that the government should facilitate the conditions for attracting foreign and domestic investment and financing in this area through giving tax incentives, reviewing regulations, custom taxes and so on. The re-export of imported goods and durable imported goods can be effective in improving performance in these areas.