Special Economic Zones Research Articles

Special economic zones of industrial and production type: Main trends and directions of development (the SEZ "Togliatti" case study)

Subject. The article investigates the impact of industrial-type special economic zones on the development of the region. Objectives. The purpose of the study was to conduct a statistical analysis of the main indicators of the activity of industrial and production special economic zones, identify benefits for their residents. Methods. I employed methods of comparative and dynamic analysis, multivariate nonparametric analysis. Results. The study examines conditions for the functioning of special economic zones. The paper presents a rating of industrial and production special economic zones based on integral assessment of their performance efficiency, which I proposed. According to the rating, the special economic zone "Togliatti" is among Top 5. Its main directions of development include attracting new residents, developing infrastructure, improving investment appeal. To implement the latter direction, the experience of establishing tax rates and rental benefits for residents of special economic zones, occupying higher positions in the compiled rating, can be applied. Conclusions. Special economic zones form the basis for successful socio-economic regional development. The Samara region has significant potential for economic growth in the special economic zone.

South-South Investments: Driver for Alternative Globalization? Examining China-Led Special Economic Zones in Brazil and South Africa

The formation of BRICS marks a significant aspect of 21st-century globalization. This has spurred optimism in the Global South about offering an alternative to Western dominance. China has aimed to expand its global presence and influence, framing its relations as ‘South-South Cooperation’. Brazil and South Africa are crucial partners within BRICS, receiving significant Chinese investment, loans, and assistance. In this article, we critically examine South-South investments through a comparative analysis of Chinese investments in South Africa and Brazil, focusing on the case studies of the Manaus Industrial Park and the Musina-Makhado Special Economic Zone. Our research employs ethnographic fieldwork and secondary sources to analyze Chinese investments and their socio-environmental impact. We begin with a discussion of globalization and current trends of deglobalization by proposing three dimensions to analyze the role of BRICS. While Chinese investment could offer an alternative to Western financing, a more balanced South-South agenda is needed. Both Brazilian and South African state and non-state actors must advocate for better conditions to avoid repeating patterns of resource exploitation and subordination. This shifts the debate beyond traditional dichotomies. Ultimately, embracing South-South FDI and Cooperation must be accompanied by critical analysis to ensure a truly transformative agenda for the Global South.

Sustainable Employment Creation through the Polish Investment Zone in Lagging Regions

The article aims to identify the firm-level effects of public support within the Polish Investment Zone (PIZ) on firms’ employment located in lagging regions of Poland, signalling insights into sustainable employment creation. Utilising a difference-in-differences framework and accounting for controls, including the firms’ size, age, leverage, other public aid programmes, subsidies, and firm-level fixed effects, our objective is to ascertain the average treatment effects (ATEs) of the programme, particularly concerning the creation of additional workplaces. To ensure the reliability of our findings, we conducted robustness checks utilising alternative econometric approaches and scrutinise changes in the duration of both the pre- and post-treatment periods. No significant ATEs were observed in the year of the treatment or in one to three years following treatment. This outcome remains robust to variations in the econometric approach, the set of variables considered, and alterations in the length of both pre- and post-treatment periods. This article contributes to an ongoing discussion marked by a lack of consensus regarding the effectiveness of special economic zones in fostering sustainable employment and reducing unemployment rates by presenting the effects of the PIZ and directing policy attention towards more qualitative aspects of created workplaces, fostering sustainable employment.

SPECIAL ECONOMIC ZONES: BASIC PREFERENCES AND LEGAL REGULATION

The article is dedicated to the definition of the peculiarities of legal regulation of creation and functioning of special economic zones on the territory of Ukraine. The main preferences have been characterized, which are provided to ensure the liberalized regime of such zones. The classification of preferences has been carried out in accordance with the nature, grounds and consequences of the implementation. It has been classified: the fiscal and organizational; the political and economic preferences; the preferences for foreign and domestic investors; as well as the preferences based on domestic legislation and/or on the norms of the international agreements. The relevance of the research subject is due to the need to form an updated concept of legislative regulation of the regimes of special economic zones in Ukraine. The methodological basis of the research is formed by general scientific and special legal methods of scientific knowledge (dialectical, analysis and synthesis, scientific abstraction, forecasting). The article is aimed at formulating the basic scientific principles for updating the normative regulation and practical application of the preferential regime of special economic zones in Ukraine in the post-war period, determining the essence and characteristics of the main privileges and simplifications used in them. The task of the article is the developing proposals for the formation of a theoretically-applied basis for updating the current legislation of Ukraine on special economic zones and improving the legal regulation of their regimes. The article has characterized and analyzed the norms of laws and by-laws acts, aimed at regulating relations in the sphere of functioning of special economic zones in Ukraine, their insufficient character has been noted. The levels of such legal regulation have been defined: the national and local. It has been proposed to update the regulatory basis of the special economic zone in the Danube region, due to its significant importance and growth in 2022-2024.

Economic Feasibility Analysis of Investment in International Circuit Development in the Mandalika Special Economic Zone (SEZ)

The Mandalika Special Economic Zone (SEZ) has been planned from the start to build facilities and infrastructure by creating a management concept set out in the main plan for the area with the theme of eco green tourism. One of the developments that has been developed in the Mandalika SEZ is the Mandalika International Circuit. The construction of the Mandalika Circuit certainly provides many positive aspects, especially in the local economic sector. The impact of Covid-19 in the Mandalika SEZ could trigger a decline in the tourist market. The circuit as a symbol of the Mandalika SEZ was also affected by Covid-19, this resulted in a reduction in visitors to events at the Mandalika International Circuit. So an in-depth analysis is needed regarding the changes that have occurred as a result of Covid-19, especially in the financial aspect. For feasibility from the financial aspect, cash flow calculations are used with investment feasibility parameters, namely; NPV (Net Present Value), BCR (Benefit Cost Ratio), IRR (Internal Rate of Return), and PP (Payback Period). From the analysis of the financial aspects, the NVP value was obtained with an interest rate of 8.75% per year, in the initial planning phase the value was obtained at IDR 202,628,841,832,- in 2035, then during the operational phase the NVP result was IDR 14,497,533,652,- in 2041, and the NPV multiplier effect is IDR 552,401,765,515 in 2041. The BCR value in the initial planning phase is 1.112 in 2035. During the operational phase the BCR value is 1.008 and in the phase due to the impact of the multiplier effect it is obtained The BCR value is 1.304 in 2041. The IRR value in the initial planning phase was 13.96% in 2035. In the operational phase the IRR was 12.56% and the IRR due to the impact of the multiplier effect was 14.43% in 2041 . The PP value for the initial planning phase is obtained over 8 years. Meanwhile, in the operational phase, PP was obtained for 11 years and PP due to the impact of the multiplier effect was obtained for 9 years. The Mandalika International Circuit project was declared feasible based on analysis data that had been carried out in the operational phase and due to the impact of the multiplier effect, even though it took longer than the initial planning phase.

The Multi-Level Governance Dilemma in Mandalika Special Economic Zone: A Bargaining and Cooperation Approach

The Multi-Level Governance Dilemma in Mandalika Special Economic Zone: A Bargaining and Cooperation Approach

Questioning the Readiness of Local Residents in Managing Community-Based Tourism? A Case in Pulisan Village, North Minahasa Regency, Indonesia

Community based tourism is a tourism management concept where the local community as the owner of tourism potential, is involved in tourism management. It requires a strong commitment from the community to be directly involved in it. Pulisan is the name of the village in Likupang which is the centre of the development of the Special Economic Zone for tourism. In the last five years it has received tourism development assistance ranging from physical infrastructure to hospitality skills training. However, from several observations in the field, it was found that the reactivity of the community in implementing the various benefits that had been distributed to the community was in-effective. The purpose of this study is to examine the readiness of local communities in managing community-based tourism. Descriptive research is the approach to solve this case. Then the data collection technique through a survey of 81 respondents who live in that village. While the analytical tool used is a Likert scale. The results found that for the three main indicators, namely attractions, amenity and accessibility, the average respondent's answer was willing, while for the supporting components, respondents were still undecided.

Theoretical Justification for the Implementation of Special Economic Zones: The Case of Luanda-Bengo Economic Zone in Angola

Purpose: In the present study, a literature review was carried out on theories of regional development, namely: the classic ones, those with an emphasis on agglomeration factors, and new theories of regional development. It intended to provide a theoretical foundation for implementing special economic zones, contextualizing the analysis to the Luanda-Bengo Special Economic Zone. Materials and Methods: Thus, the document analysis technique was used to review relevant literature on regional development and its main supporting theories. Findings: It was possible to achieve three main results: that the existence of hubs that bring together population and capital play a central role in the location of commercial and industrial activities; that companies come together in a logic of cooperation, innovation competitiveness, and ZEELB, as a hub of industrial activity, is no exception. Finally, the factors that determine the location and spatial agglomeration of economic activities, as well as the relationships of interdependence established between the various driving and driven units, possible in a ZEE, are also present in the foundations of adopting ZEELB operations. Implications to Theory, Practice and Policy: Theories about the location and agglomeration of economic activities in geographically, customs, and legally demarcated spaces, such as ZEELB, should be used in studies for future implementations of similar projects. Exchange between academia and structuring investment planning bodies such as ZEELB, so that based on its adoption as part of the global economic development strategy, is necessary. Public policymakers should see ZEELB as an opportunity to serve as a laboratory for policies at the following levels: tax, customs, regulatory, commercial, and management

Tax Incentives for Economic Growth in the Russian Far East: Broad vs. Targeted Stimuli

The purpose of this study is to justify the choice of tax incentive policy instruments aimed at the economic development of the Russian Far East, which is facing acute demographic and environmental problems. To model the dynamics of the region’s real economic system, this study employed a mathematical model based on actual data from 2010 to 2021, covering economic, technological, and socio-ecological aspects. Using the versatile AnyLogic 8.0 platform for agent-based and system dynamics modeling, experiments on alternative tax incentive policy options involving both broad tax incentives and targeted economic development measures were conducted. Specifically, a 50% investment tax deduction for residents in special economic zones in the Russian Far East was implemented. The experimental results show that, despite comparable population dynamics, targeted stimulation of growth poles through public-private partnership programs outperforms broad tax incentives for economic entities in the Russian Far East. This is evident in higher economic growth rates in the region, particularly during the experimental period, except for 2040–2050, where adverse demographic trends constrain growth in both scenarios. The theoretical significance of the application of this method has shown that it allows us to obtain new significant results in the subject area of research due to the consideration of the complex interaction of factors of influence both at the micro- and macro-level, primarily behavioral factors that are fundamentally important for understanding the action of taxes. The practical implications of this study lie in defining the parameters of tax policy to target and stimulate growth poles in regions serving as hubs for generating and disseminating new technologies. The planned perspective is to encourage population growth and ensure sustained economic development in Russia’s Far East. It is advisable to explore comprehensive tax and budgetary regulations that simultaneously address economic, socio-demographic, and environmental issues in the region. Doi: 10.28991/ESJ-2024-08-03-021 Full Text: PDF

Community Participation in Tourism Development in the Tanjung Lesung Special Economic Zone, Banten Province

Community Participation in Tourism Development in the Tanjung Lesung Special Economic Zone, Banten Province

ANALISIS PENGEMBANGAN PARIWISATA BERBASIS MASYARAKAT DI KAWASAN EKONOMI KHUSUS KABUPATEN LOMBOK TENGAH, NUSA TENGGARA BARAT

The purpose of this study is to find (1) the influence of the role of government, social capital on community participation in the Mandalika special economic zone, (2) the influence of the role of government, social capital and community participation on the welfare of the community in the Mandalika special economic zone (3) community participation mediate the role of government and social capital on the welfare of the people in the Mandalika special economic zone. Data collection techniques were carried out by observation, interviews, in-depth interviews. Data were collected using a Likert scale, then analyzed using SEM-PLS. This study is a study using a sample of 300 respondents. This research is an associative research that uses primary and secondary data. The results showed that the role of government and social capital had a positive and significant effect on community participation, then the community participation variable had a positive and significant effect on community welfare and community participation variables mediated the role of government and social capital on community welfare in the Mandalika special economic zone in Central Lombok Regency. West Nusa Tenggara.

Legal Regulation of Entrepreneurial Activity in Special Economic Zones: Problems and Prospects

Legal Regulation of Entrepreneurial Activity in Special Economic Zones: Problems and Prospects

Pengaturan Penggunaan Tenaga Kerja Asing di Kawasan Ekonomi Khusus

Special Economic Zones in Indonesia are zones that are provided with special facilities to increase investment and national competitiveness. Special economic zones consist of several zones, including export processing zones, logistics zones, industrial zones, technology development zones, energy zones and other economic zones. The use of foreign workers in special economic zones has limitations and potential, which need to be understood so that the benefits can be maximized. These limitations include regulations and compliance, regulatory compliance, and local energy absorption. Meanwhile, the potential for using foreign workers in special economic zones includes technology and skills, easier access to foreign workers, regional economic development, and increasing company productivity.

Biopolitics in Rebel-Controlled Myanmar: Exploring Why the United League of Arakan Supports the Kyaukphyu Special Economic Zone

In this article, we explore why the Myanmar-based insurgency organisation known as the United League of Arakan (ULA) supports the Kyaukphyu Special Economic Zone (KSEZ): a controversial Belt and Road Initiative (BRI) project. We argue that the ULA's support for the KSEZ is rooted in a biopolitics that benefits the ULA by attractively showcasing its insurgent aims and by effectively boosting its local authority. The ULA's pro-KSEZ policy partially explains why the KSEZ, unlike other BRI projects in junta-led Myanmar, has enjoyed moderate success. Despite its biopolitical benefits, the ULA's pro-KSEZ policy has marginalised certain anti-KSEZ actors in the rebel organisation's sphere of control. The resulting fragmentation may both destabilise the ULA's hard-fought social order and undermine the prospects of the KSEZ. Our examination of the ULA–KSEZ relationship empirically contributes to BRI-in-Myanmar research, which has heretofore paid little attention to rebel-controlled societies’ significant influence on foreign-led domestic development projects.

Partisipasi Masyarakat Kampung Arar dalam Pengadaan Tanah untuk Pembangunan Bagi Kepentingan Umum di KEK Sorong Provinsi Papua Barat Daya

Land acquisition for the construction of the Sorong SEZ will be carried out in 2023. In the development plan, the land area required for the Sorong SEZ development plan reaches 523.7 ha, which is the property of the Kami clan. The object of land acquisition for this development consists of community land in Arar village with mixed garden land conditions. This community service activity aims to increase awareness and participation of the Arar Village community in the land acquisition process for public interest development in the Sorong Special Economic Zone (KEK), Southwest Papua. This community activity was held on February 1, 2024, at the Arar Village Meeting Hall and the Sorong KEK location. This community service activity is carried out with several activities, namely: (1) preparation for the activity location and preparation of presentation materials to be delivered; (2) licensing administration and outreach to the Arar Village Government, Babinsa, and the community; (3) carrying out outreach activities at the Arar Village Meeting Hall regarding the importance of community participation in land acquisition for public purposes in the Sorong SEZ; and (4) implementation of activities and inspection of affected locations, significantly growing plants and buildings at the Sorong KEK location. The implementation of land acquisition for the construction of the Sorong SEZ went smoothly, driven by the active participation of the people of Kampung Arar. Therefore, the recommendations for this activity are: (a) Land acquisition activities are very complex activities, requiring good synergy between the government and the community; and (b) In implementing land acquisition activities, the approach taken to the community is not only carried out formally but can also be carried out informally so that the community can fully participate in development in the community area.

Special economic zone efficiency factors given Russia's circumstances

Subject. This article discusses the importance of special economic zones in solving problems related to attracting investors, supporting regions of concern, and creating regional growth poles. Objectives. The article aims to consider the impact of economic and geographical location, characteristics of the region of base, the investment policy implementation quality, and the level of tax burden on the efficiency of Russian special economic zones. Methods. For the study, we used the Data Envelopment Analysis (DEA) technique, and a regression analysis. Results. The article presents the results of the analysis of the effectiveness of budget investments in the infrastructure of various special economic zones in Russia. Conclusions. The quality of the implementation of the regional investment policy has the most significant impact on the success of the development of special economic zones. Improving the methodology for assessing the effectiveness of special economic zones requires the collection and use of information on the results of scientific, technical and innovative activities of residents, taking into account the practices of the Ministry of Science and Technology of China.

EVALUATION OF SPECIAL ECONOMIC ZONE RELATED CHALLENGES AND OPPORTUNITIES IN EXPORT AND IMPORT

The world has now evolved into a single global market, making it imperative for companies to excel in international trade. Special Economic Zones (SEZs) have emerged as crucial tools for countries to attract foreign investment, enhance export-oriented growth, and foster employment opportunities. SEZs offer tax benefits and preferential treatments to units operating within their confines. This study seeks to assess the challenges and opportunities related to international trade for SEZ companies. It conducts a survey to gather insights from various stakeholders, including employees, logistics partners, and customs housing agents of SEZ companies, regarding international trade operations within SEZs. A questionnaire is administered to collect opinions on the challenges and opportunities in international trade within SEZs. The gathered data is then analyzed and interpreted to offer valuable suggestions for SEZ companies. While SEZ units are presented with numerous opportunities for achieving rapid and sustainable growth, they also encounter specific challenges and constraints. These challenges may encompass documentation hurdles, stringent customs regulations, coordination with customs departments, and management of logistics and supply chain operations. The objective of the study is to assist companies in managing SEZ-related challenges effectively within the MEPZ (Make in India Economic Zone) while capitalizing on opportunities for balanced and sustainable growth.

Place-based policies and firm performance: Evidence from Special Economic Zones in India

This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct effects of the program on firm performance. We combine geocoded firm-level data and geocoded SEZs. Our analysis yields that conditional on controlling for initial selection based on observables, the establishment of new SEZs did not induce any discernible positive effect on the productivity growth of firms in the SEZs. To explain this, we focus on the possibility of distortions through non-profitable activities on the part of managers. We find that firms especially in publicly-owned SEZs decreased their productivity growth, while firms located in privately-owned SEZs experience productivity increases. We also show that directors of firms located inside the publicly-owned zones experienced a significant increase in their salary growth, which is not the case in privately-owned SEZs. Our findings are in line with the idea that the possibility of rent-seeking by managers leads to distortions in program implementation.

An Analytical of the Design Process of Special Economic Zone Governance in Indonesia

Arun Lhoksumawe Special Economic Zone is an economic zone established as one of the economic growth centers of Aceh Province. In the planning, pre-operational, and operational processes, Arun Lhoksumawe Special Economic Zone still faces several significant problems. Therefore, the purpose of this qualitative research is to analyze the process of designing the governance of the Special Economic Zone. This analysis process is carried out through observation with secondary data from 2018 to 2019 as research support. The results of this study show that there are weaknesses in asset management that are not proportionally distributed so that collaboration and integration of assets are needed for the optimization of the Arun special economic zone. So, the results of this study can be used as evaluation material to optimize the Arun Lhoksumawe special economic zone. Keyword: Special Economic Zones; Interest Groups; Co-operation; Assets; Arun

Organization of the cross-border marketing center: functions, tasks and areas of activity

Organization of the cross-border marketing center: functions, tasks and areas of activity