Commercial Surveys

Commercial Surveys

A literature Review and An Introduction to Free Zone and Special Economic Zone Models

Document Type : Original Article

Author
Hossein Abbasi
Associate Professor, Department of Business Administration, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran
10.22034/bs.2025.2056746.3088
Abstract
This study aimed to identify and introduce free zone models worldwide. By systematically reviewing the literature and examining articles published in domestic and foreign databases; the components, elements and features of free zones were identified and classified into three elements: legal frameworks, incentives and infrastructure. The legal framework comprises a clear and coherent set of laws and regulations governing economic activities in the zone. Incentives refere to tax and financial benefits provided to attract investment and business in free zones. Infrastructure provides the necessary facilities and utilities for the effective operation of companies. The interaction between these components is very important for the success of free zones and the integration and balance between these three components must be ensured. If there are failures in, or incomplete or inadequate infrastructure, the effectiveness of a free zone - even one with a strong legal framework and attractive incentives – decreases, and vice versa. By providing the essential knowledge and information about free zones, this article provides the necessary insight to distinguish free zones from other economic zones and assess their feasibility for a country. It also, by identifying and introducing the core components of a free zone, enabling ongoing evaluations and the improvement of zone performance.
Keywords
Free Zones/ Free Zone Components/ Special Economic Zones/ Export Processing Zones/ Free Trade Zones

Subjects

 
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Commercial Surveys
Volume 23, Issue 131 - Serial Number 131
May and June 2025
Pages 39-64

  • Receive Date 27 March 2025
  • Revise Date 30 May 2025
  • Accept Date 02 June 2025