Stages of emergence and development of free economic zones

Author(s):  Е.V. Arskaya, Belgorod State Technological University named after V.G. Shukhov, Belgorod, Russia,

L.H. Kravchenko, Belgorod State Technological University named after V.G. Shukhov, Belgorod, Russia,

L.V.Usatova, Belgorod National Research University, Belgorod, Russia, Usatova

Issue:  Volume 45, № 3

Rubric:  Sectoral markets and market infrastructure

Annotation:  In this article, the history of the emergence of free economic zones (SEZ), the process of functioning and the stages of development are considered. The importance of free economic zones in the world and national economy is undoubtedly increasing due to the fact that the creation of FEZ is one of the ways to attract investments necessary for the development of the regions, while the reasons for the functioning of free economic zones vary fr om state to state. Considering the history of the emergence of free economic zones, it should be noted that the FEZ have passed a rather long path of development from the simplest to the more complex of their types. Unlike the developed countries, wh ere such zones were created to expand foreign economic relations, improve regional policies, and stimulate small and medium-sized businesses, the SEZs were created mainly to attract foreign capital, technology, and industrial modernization, since such countries did not have to count on internal opportunities. Therefore, the active involvement of various world powers in international economic relations led to the emergence and wide spread of free economic zones in the world, the creation of which entailed the involvement of national economies in international relations. Taking into account the world experience of developing free economic zones, one should take into account that any type of SEZ implies interconnection with the economic potential of the state in which it operates. Analyzing the evolution of SEZ development, it can be concluded that historically developing, various stages were passed that were characterized by gradual regulation of interstate foreign economic interaction and achievement of transparency of the domestic economy to the world. At present, the concept of a "free economic zone" is not unique for all countries. Free economic zones are created to achieve the economic and political goals that face the country, its territory or individual entity. In general, considering FEZ, it should be noted that all free zones are at different stages of development, differing in their economic, political and legal basis. Considering the experience of creating special economic zones, it is important to note that each type of SEZ corresponds to various types of benefits and incentives that have their own specific characteristics. Consequently, the creation of such zones in the Russian Federation and throughout the world will be successful only if a maximally transparent and efficient economic system with a sufficiently developed regulatory and legal basis, minimal bureaucratic mechanisms and maximum competition is created

Keywords:  free economic zones, world experience of free economic zones development, international economic relations, international economic cooperation, globalization peculiarities, free economic zones functioning process

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