Abstract

The study, based in part on field work in Ukraine in mid-1996, analyzes the development of free economic zones in the former Soviet Union with a focus on legislative approaches and preliminary results through the first quarter of 1997. Several newly organized free economic zones in Russia and Ukraine are reviewed in some detail. The author highlights the conflict in both countries between local authorities seeking tax abatements and central powers attempting to limit the size of the privileged zones. A comparison between Russia and Ukraine reveals conceptual similarities but differences in outcome. Case studies presented in the paper, which include developments in Moscow, illustrate the uneven development and progress of the free economic zones. Journal of Economic Literature, Classification Numbers: F14, H71, O19, O52. 55 references

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