Scholarly record

THE ROLE OF FREE ECONOMIC ZONES FOR THE DEVELOPMENT OF THE REGIONAL ECONOMY

K. Naydenov, M. Ivanov

Abstract

The development and growth of the autonomy of the regions implies an increase in their degree of recognition, related to the increase of international economic relations and trade. One of these options is a free economic zone, as a particular type of state (or private) regulation of international economic relations and trade. Free economic zones around the world must include free - commercial, port, economic, banking - or duty - free shops and warehouses. Generally, they are designed to stimulate industrial exports, increase foreign exchange earnings, and workplaces used as "laboratories" to test new economic methods and mechanisms. Another favorable feature of all free economic zones is the favorable investment climate - customs, tax, financial privileges and administrative concessions compared to the general regime operating in the rest of the economic area in one or another country (respectively region). Often, factors such as political stability, investment guarantees, infrastructure quality, work force qualifications are crucial. The localization of such a free zone is an essential element of the national strategy and an important approach in the development of regional policy for a given territory. This is one of the world-wide recognized forms of organizing production, especially of high-tech products, as well as creating conditions for providing modern technologies, as well as for moving foreign direct investments and accelerating the development of certain economic regions. Free economic zones are an important tool for regional development. Some of the most important localization requirements for such free zones in accordance with world standards are: political and economic stability in the region, accompanied by a concept of economic development and planning; good construction of the transport system and communications, proximity to a railway and communication center of national importance; environmentally friendly, environmentally friendly, high standard of physical planning; reliable infrastructure for all seasons during the year - transport, water, energy; market access - preferential access to important markets with a major advantage; developed financial and banking infrastructure with prerequisites for servicing in the field of electronics and engineering; a required labor force, a low labor cost, a production qualification that essentiallydetermines the type of industry that could be developed in the area; the existence of an existing industry with a well-developed production infrastructureand a plant economy, - a good organization of the zone and general coordination, prerequisites for the development of light industry in the presence of traditions andhighly qualified personnel, which is a prerequisite for high quality of production andcompetitiveness.

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