Establishment Of Special Economic Zones Research Articles

Comparative analysis of the economic effects of special economic zones in China and Korea: evidence from a PSM difference-in-difference method

ABSTRACT This paper examines the economic effects of the establishment of Special Economic Zones (SEZs) on the export of industrial complexes in China and Korea, focusing on the synergistic economic effects between different types of SEZs, using the Propensity Score Matching difference-in-difference method. We use panel data of 284 Chinese cities and 162 Korean cities between 2000 and 2019, focusing on 93 industrial complexes in China, and 569 industrial complexes in Korea. We compare the effects of Free Trade Zones (FTZs) with other special economic zones, including Bonded Areas (BA) in China and Free Economic Zones (FEZ) and Foreign Investment Regions (FIZ) in Korea. The establishment of SEZs has a significant positive impact on the export growth of industrial complexes in both China and Korea. In Korea, a significant synergy effect on export is found between the FTZ and the FIZs. There is no synergy effect found between FEZs and other economic zones. After the implementation of the FTZ policy in China, the export of BA’s industrial complexes with ports and airports significantly increased, indicating that the FTZs have a positive synergy effect on the BAs with convenient transportation.

Accessibility analysis in spatial planning: A case of special economic zones (SEZs) in Campania, Southern Italy

The strategic role of Special Economic Zones (SEZ) at the Italian level has also been underlined by the Italian National Recovery and Resilience Plan, which has provided an important economic endowment to relaunch the national economy, in general, and the Campania region territorial economy, in particular. Literature and best practices clearly show that many factors determine the success of a SEZ, with transport accessibility being one of the key factors. This study performs a transport accessibility analysis both at national and first/last-leg levels, by comparing the accessibility of the Campania SEZ areas, the other SEZ areas in Italy and all the other Italian local labour systems. The study focuses on the Campania region, as it represents the first Italian pilot project of spatial planning through the establishment of SEZs. The Campania region exhibits, on average, good transport accessibility both at a national level (considering the multi-modal freight Italian transport network) and at a first/last-leg level (considering relevant nodes of the network, such as tollbooths, freight stations, ports, interports and airports). Also, the impact of SEZ implementation on land use planning has been discussed, to provide a useful tool for stakeholders that are interested in revitalizing the area, at different levels: i) land use policymakers, to plan interventions/planning concerning infrastructures and spatial planning; ii) national policymakers, to establish SEZs in other geographical areas; iii) investors, to assess the convenience of investments in this geographical area.

China’s Foreign Policy Shift in South Asia vis-à-vis Belt and Road Initiative

China’s foreign policy shift in South Asia has been largely driven by its Belt and Road Initiative (BRI), which seeks to enhance connectivity and economic cooperation across Asia and beyond. South Asia, with its strategic location and growing economic potential, has emerged as a key area of focus for China under the B RI. In this context, China has pursued a multi-pronged approach, which includes infrastructure development, economic cooperation, and strategic partnerships with key countries in the region. One of the key components of China’s foreign policy shift in South Asia has been its emphasis on infrastructure development. China has invested heavily in the construction of roads, railways, ports, and other infrastructure projects in the region, with the aim of improving connectivity and facilitating trade and commerce. These investments have been largely made through the BRI framework, which has provided China with a platform to promote its economic and strategic interests in the region. China has also sought to deepen economic cooperation with South Asian countries through the BRI. This has involved the signing of a number of bilateral and regional trade agreements, as well as the establishment of special economic zones and industrial parks. Through these initiatives, China has sought to increase its access to South Asian markets and promote the growth of its own economy. In addition to these economic initiatives, China has also sought to establish strategic partnerships with key countries in the region. This has involved strengthening its ties with countries such as Pakistan, Sri Lanka, and Bangladesh, which have strategic significance due to their location and their potential to provide China with access to key markets and resources. These partnerships have also involved cooperation in areas such as defense and security, with China seeking to establish a greater presence in the Indian Ocean region.

Asean Guidelines for Special Economic Zones (SEZs) Development and Collaboration: A Study of SEZ Arun Lhokseumawe, Aceh- Indonesia

The establishment of Special Economic Zones (SEZ) Lhokseumawe, Aceh province in 2017, has accelerated economic development in post-conflict situation in Aceh province, Indonesia. This area is supported by the existence of former Arun gas industry facilities which was ended in 2014. This paper investigates the meaning, the extent to which the Asean Guidelines for SEZ has been applied and contributed to accelerate investment in SEZ Arun Lhokseumawe, along with progresses and challenges ahead. This is essential for sustainable peace post peace agreement(MoU) Helsinki. Using doctrinal approach and secondary data, this paper found that SEZ Arun Lhokseumawe has partly adopted the Asean Guideline for SEZ, in terms of a clear development strategy, clarification and separation of roles and responsibility, delegation of authority, building strong institutional capacities, and increasing Asean SEZ cooperation. Therefore, little progress of this SEZ become questionable. Current constraint of asset ownership, the absence of independent management has advised to have Aceh Qanun on the Administrator Institution of the SEZ Arun Lhokseumawe. The Qanun is expected to become a legal umbrella and technical guidance in the effective management of the SEZ Arun Lhokseumawe.

CPEC – Geo-Politics to Geo-Economics

The China-Pakistan Economic Corridor (CPEC) is a multi-billion-dollar collection of ongoing and planned Chinese projects in Pakistan ranging from infrastructure development to the establishment of special economic zones and the sharing of technical expertise by China. For China, it is an integral part of its ambitious Belt and Road Initiative (BRI) through which it aims to establish its economic hegemony in Eurasia and Africa. For Pakistan, it is an opportunity to bring its stumbling economy to some semblance of stability and even growth. Therefore, now the policy makers of the country must wake up and use the valuable human resource like youth for nation building. In this context, attainment of higher education should be ensured. However, there are controversies regarding the initiative as well, with critics decrying it as an attempt at the economic exploitation of Pakistan at the hands of China. In any case, CPEC is a project that has immense ramifications for the geo-politics of the entire region, particularly with regard to economic affairs. Hence, it is important to analyze its effects and the views of the general public regarding it in order to understand the situation in terms of geo-economics.

Will the Special Economic Zone contribute to carbon neutrality? Quasi-natural experimental evidence from China

ABSTRACT Many studies have explored the impact of China Special Economic Zone (SEZ) on economic growth, but few have paid attention to its impact on environmental pollution. Taking the establishment of SEZ as a quasi-natural experiment in China, this paper used the time-varying difference-in-difference method to explore the impact of industrial agglomeration caused by SEZ on CO2 emission from 1998 to 2011. The results showed that the industrial agglomeration would aggravate CO2 emissions, while effective regulatory measures in SEZ can reduce CO2 emissions. The policy emission reduction effect was significant in non-urban agglomerations and before 2006. To reduce CO2 emissions and achieve the goal of carbon neutrality, the local government should supervise and manage industrial agglomeration effectively.

Locational Strategy of Special Economic Zones in India

The establishment of special economic zones (SEZs) in Indian districts is intended to bring rapid economic growth to India. However, the data on SEZs show that SEZs are concentrated in only a few Indian districts and thus aggravate the problem of regional inequality. In this paper, the strategy of concentration of SEZs is analysed with a backdrop of the new economic geography theory. The data of the variables are extracted from Census 2011 and other sources for all 640 districts. The Tobit model is used to determine the locational factors behind the establishment of the SEZs in a district of India. The results show that the variables such as urbanization, distance from megacity, districts with a seaport and districts with airports have a significant impact on the number of SEZ approvals as well as SEZ notifications. The concentration of SEZs is mainly due to favourable market and infrastructural conditions. JEL codes: O10, C24, D63

EAST JAVA HALAL TOURISM OUTLOOK: POTENTIAL ANALYSIS AND STRATEGY FOR EAST JAVA HALAL TOURISM DEVELOPMENT

East Java is included in the strategic area of national halal tourism development by the Ministry of Tourism. This was supported by the existence of religious tourism objects, natural and artificial tourism attractions, organizing annual cultural events, and adequate infrastructure. The purpose of this research is to review the potential and formulate strategies for the development of halal tourism in East Java. This research uses secondary data with qualitative method and SWOT analysis technique. Internal analysis shows the strengths and weaknesses factor as well as external analysis shows the opportunity and challenge factors of weakness in the development of halal tourism in East Java. Strength factors include diversity of tourist destinations, infrastructure to support the mobility of tourists, and level of tourist visits. Weakneses factors include promotion and branding, skilled human resources, as well as supporting facilities for halal tourism. Opportunity factors include government policy support, existence of supporting institutions and international reputation of halal tourism Indonesia. Threat factors include economic stability, security stability and competition for the halal tourism industry. Based on the analysis of internal and external factors, the formulation of the development strategy of halal tourism in East Java among others : a) S-O strategy: encouraging domestic and foreign investment in the development of halal tourism in East Java; b) W-O strategy: development of East Java halal tourism information center platform; c) S-T strategy: create a brand identity for East Java halal tourism titled “Khazanah Jawa Timur”; d) W-T strategy: establishment of special economic zone for east java halal tourism.

Impact of special economic zones on firm performance

The establishment of special economic zones (SEZs) is one of the critical policies to promote economic growth. However, the relationship between SEZs and firm performance is still unclear. Using China Industrial Enterprise Database (CIED) from 1998 to 2007, this paper investigates the influence of firm location on its performance mainly from two channels: selection effect and agglomeration effect. The results suggest that firms in SEZs have better performance on average than firms outside SEZs. One reason for the productivity effect is selecting firms with higher productivity to enter the zone and firms with lower productivity to exit the zone. Agglomeration is another critical channel, and the effects are heterogeneous. Both firms in the zones and firms outside the zones gain spillovers from the zones, with the former being larger than the latter. Firms gain larger agglomeration effects from a cluster of the same industry than across industries.

Legal aspects of establishment of special economic zones in the world practice and in the Republic of Azerbaijan

Legal aspects of establishment of special economic zones in the world practice and in the Republic of Azerbaijan This paper examines the contemporary aspects of the regulation of special economic zones in world practice and national legislations, and highlights the characteristic features of their establishment and operation. Considerable attention is paid to the analysis of the concept of special economic zones in the Republic of Azerbaijan and legislation applicable to the Alat Free Economic Zone.

In chasing the status as the Province of Jakarta Special Region after the movement of the capital city to East Kalimantan Province

The Government of of Indonesia plans to move the Capital City from Jakarta to East Kalimantan Province. The problem is what is the status of the administration of Jakarta Province after it no longer bears the status as the capital city of Indonesia. Does Jakarta Province still have the right to obtain status as a provincial region even though the government structure is not divided into municipal and regency areas, or the existing administrative area must be made an autonomous region and then legally qualify as a provincial region ?. Research Methods using qualitative descriptive methods. Based on the politics of decentralization contained in the 1945 Constitution, regarding the formation of special regions and reviews several laws which form the legal basis for granting special regions in Indonesia, or what is theoretically known as asymmetric decentralization. If the national capital is moved to East Kalimantan, the ex Jakarta Province still qualifies as a province that has special autonomy as the Province of Jakarta Special Region, because the history and role of the city of Jakarta on national government in the past cannot be forgotten. Therefore, the governance structure in the form of one level of autonomy is maintained, and the central government can surrender or delegate greater authorities for the management of economic, trade and service sectors, such as the Nusantara Bonded Zone, including the establishment of special economic zone, so that it can play a role as a locomotive of the national economy.

Sustainable and Special Economic Zone Selection under Fuzzy Environment: A Case of Pakistan

The establishment of Special Economic Zones (SEZs) is a lengthy, expensive, and long-term orientated endeavor. Proper selection of SEZs is indispensable to meet the objectives of export-led growth and value up-gradation. Consideration of sustainability issues in such planning under the Zone 3.0 paradigm is critical to achieve Sustainable Development Goals (SDGs) by 2030. Multiple key factors such as location, linkages, labor force, suitability of industries, incentives and facilitation, and market orientation are important in decision-making process of establishing SEZs. Furthermore, environmental conditions and resource availability need to be considered in the planning and policy making processes to keep symmetry in the natural environment and ecosystem of the areas under consideration for SEZs. The present study uses Multi-Criteria Decision Analysis (MCDA) methods in the perspectives of green industrial zone planning and development in Pakistan under the flagship project of China-Pakistan Economic Corridor (CPEC) of China’s Belt and Road Initiative (BRI). This research uses Delphi method, Analytical Hierarchy Process (AHP), and the Fuzzy Vlse Kriterijumska Optimizacija Kompromisno Resenje (VIKOR). The Delphi method has been used to identify the main criteria, sub-criteria, and their weights for 3 SEZs under consideration. The results of AHP analysis unfolded that the majority of the experts believe the location and land aspect is the most pivotal criteria in setting SEZs followed by linkages, subsidies, and facilities criteria. Finally, the results of Fuzzy VIKOR analysis considering environmental sustainability reveals that Faisalabad SEZ is the best suited under given criteria and sub-criteria.

Assessing Border Community Readiness for Health Management Prior to the Special Border Economic Zone in Thailand: A Case Study of Sadao District Songkhla Province, Thailand

Community readiness (CR) refers to the degree to which a community is ready to take an action to address a health issue. Since 2015, the establishment of Special Economic Zones (SEZ) has already carried on in Thai-Malay border. The present study was conducted by using a 2-phased-mixed-methods, aiming to assess the level of CR and preparation and to develop community health management model prior to SEZ in Sadao district, Songkhla province. Data were collected by questionnaires in 450 local people by simple random sampling. An in-depth interview followed by a focus groups discussion was then performed in purposive selected 150 participants, during December 2017-April 2018. The data was finally analyzed by descriptive statistics and content analysis. Overall community readiness scores ranged from 5.85 to 7.01 on a 10-point scale. The mean readiness score, 6.28 (SD = 0.44) corresponds with an initiation level of readiness which referred to an action plan is established, and early steps are being taken by leadership to address the issue. Main features of the health management model for SEZ was established by community stakeholders as following: (1) community participation (2) network strengthening (3) knowledge and management (4) communication and (5) healthy public policy approach. These findings indicated that they display a slightly high of CR level. In the next step, targeted capacity building activities will be promoted to archive the health model to SEZ for sustainability.

The development from special economic zone (SEZ) to free trade zone (FTZ) of China

The experience of many countries shows that the presence of high innovative potential is a necessary factor of economic growth in the modern world. The establishment of special economic zones at the early stage of the policy of reform and opening up helped to reduce its cost. If the establishment of special economic zones reflects the Chinese characteristics (road of socialism with Chinese characteristics), the establishment of free trade zones reflects its universality.

Assessing Border Community Readiness for Health Management Prior to the Special Border Economic Zone in Thailand: A Case Study of Sadao District Songkhla Province, Thailand

Community readiness (CR) refers to the degree to which a community is ready to take an action to address a health issue. Since 2015, the establishment of Special Economic Zones (SEZ) has already carried on in Thai-Malay border. The present study was conducted by using a 2-phased-mixed-methods, aiming to assess the level of CR and preparation and to develop community health management model prior to SEZ in Sadao district, Songkhla province. Data were collected by questionnaires in 450 local people by simple random sampling. An in-depth interview followed by a focus groups discussion was then performed in purposive selected 150 participants, during December 2017-April 2018. The data was finally analyzed by descriptive statistics and content analysis. Overall community readiness scores ranged from 5.85 to 7.01 on a 10-point scale. The mean readiness score, 6.28 (SD = 0.44) corresponds with an initiation level of readiness which referred to an action plan is established, and early steps are being taken by leadership to address the issue. Main features of the health management model for SEZ was established by community stakeholders as following: (1) community participation (2) network strengthening (3) knowledge and management (4) communication and (5) healthy public policy approach. These findings indicated that they display a slightly high of CR level. In the next step, targeted capacity building activities will be promoted to archive the health model to SEZ for sustainability.

Some Aspect of Legal Regulation of Special Economic Zones in Russia

The authors analyze the Russian and international experience of functioning of territories with special legal status. The multiple advantages of establishing and developing of such territories in the country in the short-term and long term are noted. On the basis of the analysis of the Federal Law “About special economic zones in the Russian Federation” and the other normative legal acts, the advantages and the shortcomings of the legal regulation of the creation, management and closing of the special economic zones are revealed. The factors defining a set of privileges for the foreign investors in various territories with special legal status and also the conditions of the effective work of the special economic zone of industrial and production type are considered. The authors support their analysis of the legislation with the description and comparison of economic indicators of work of two special economic zones of industrial and production type in the Volga Federal District. The authors also consider jurisprudence on the controversial issues arising in the connection with the establishment of special economic zones. The article comes to the end with the consideration of possible prospects of the territories with special legal status transformation.

China-Pakistan Economic Corridor; Prospects and Challenges for Balochistan, Pakistan.

Balochistan is rich in natural resource but due to the extremely harsh geographical environment and under-developed civil infrastructure (including roads, energy and water supplies), these natural resources could not have been tapped adequately in the past. With the launch of China-Pakistan Economic Corridor (C-PEC), there are ample opportunities for the exploitation of these resources that are expected to pave the way for unprecedented economic activities in Balochistan. From the perspective of natural resources these activities include, but not limited to, development and management of water resource, mining of coal and minerals, exploration of unexplored hydrocarbons, exploitation of dimension stones and construction material, and the establishment of related and subsidiary industries. All these activities require human resource development, better health, and educational facilities especially institution for technical and skill development of masses and most importantly the sustainable development of water resources and reservoirs for drinking, municipal and industrial purposes. In this paper key natural resources of Balochistan are identified in the context of their sustainable use under the C-PEC induced development projects. These include water, minerals, hydrocarbons, shale-gas, and coal. Suggestions are presented for a way forward to take maximum advantage of these resources for revenue generation and for the ultimate benefit to the local communities in Balochistan. A large number of mega projects including development of deep-sea Gwadar port, power generation plants, highway construction, and the establishment of special economic zones have been part of the C-PEC and are already being undertaken. However, it appears that small and medium-sized local industries and production units have not been given due attention. It is proposed here that the local people through local bodies may be identified and matched with relevant Chinese counterparts to develop joint ventures. Most of the areas of production and development identified in this paper are those whose products are already being exported to China through Karachi port. Hence the demand for these products in China is already established and need not any further survey. The products proposed in this paper are considered viable as all kinds of transport for C-PEC shall be passing through a large part of Balochistan where these resources occur naturally.

“ВОСТОЧНЫЙ ВЕКТОР” ИНВЕСТИЦИОННЫХ СВЯЗЕЙ РОССИИ

The author shows that the “Eastern vector” in Russian investment relations is visible, but not sustainable. The growing importance of foreign direct investment (FDI) stock from Asian countries in 2014–2016 is associated with the reducing role of the European countries as well as the privatization of 19.5% of “Rosneft” shares by the investment consortium registered in Singapore. At the same time, the absolute volumes of FDI stock from China declined. The role of Russian Eastern regions in the “Eastern vector” formation has not yet become decisive. The “neighborhood effect” and the federal support of the Far East played a smaller role in the attracting of Asian investments than the consumer market capacity (which is much higher in the Western regions of the country, especially in Central Russia). Russian regions’ differentiation in FDI stock from the East Asian countries is also explained by three principal factors: sectoral structure of regional economies (a significant part of FDI stock is connected with the automobile industry), state policy for encouragement of investment both of federal and regional authorities (in particular, the establishment of special economic zones or industrial parks), the presence of natural resources. In the future, “Eastern vector” of Russian investment relations is likely to intensify as long as its formation is connected not only with the anti-Russian sanctions, but also with long-term fundamental factors. Firstly, one should mention the steady shift of Russian oil and gas production more and more Eastward (which began at the end of 2000-ies), the progress of energy supplies to the fast growing Asian markets, and the growing number of mutual investments within the oil and gas sector. Secondly, the strengthening of federal policy to attract foreign investors in the Eastern regions of the country, the creation of special regimes to support investors – the advanced special economic zones and the Free port of Vladivostok-city with the large-scale preferences for the stakeholders.

Special Economic Zones as an Engine of Regional Economic Development: the best Practices and Implications for Uzbekistan

Special economic zones (SEZs) are considered as an effective tool to stimulate industrialization and structural transformation, but only when implemented properly in the right context. The aim of the paper is to review the existing practices of establishment of Special Economic Zones using the case successful countries including China, Korea, Singapore and the UAE and explain how they contribute for the development of regional economy. Moreover, the current paper provides the latest initiatives taken by the Uzbek government to establish Special Economic Zones as a main tool of foreign direct investment attraction and provides some recommendations for further improvement based on the successful practices. Special economic zones (SEZs) are booming around the globe. The zones can be effective tools to endorse economic development if applied properly in the right context. The aim of this paper is to give recommendations for the success of Uzbek SEZ based on the global experience of successful countries such as China, Korea and Singapore.

A Review to the Development of Foreign Capital Manufacturing Industry in China: Looking forward to Made in China, 2025

This paper argues China through the establishment of special economic zones at the beginning of reform and opening up, as well as the formulation of “super national treatment” and other preferential policies to attract foreign investment. To now have a large number of foreign manufacturing enterprises’ withdraw behind China’s contrast, is a reflection of China’s economy growing stronger, and is the inevitable result compatible with the “made in China 2025”. This paper hopes to help some enterprises to correctly understand the phenomenon of foreign investment. This paper reviews the different historical periods under the different performances of China’s policy on foreign investment to explore “made in China 2025” by the historic significance, but also shows good hope for the development of Chinese manufacturing industry.