Special economic zone
|Special economic zone|
According to the Act on Special Economic Zones of October 20, 1994, a Special Economic Zone (SEZ) is a selected geographical area where business activity is carried out on preferential terms. Special Economic Zones have been seen as a vehicle for the creation of new jobs, development of export and innovations, increasing the competitiveness of manufactured goods and services.
One of the primary reason for the existence of privileged areas is economic mobilization of a given region, where beneficial conditions for business activities are offered for domestic and foreign investors alike.
Benefits of SEZs
There are many benefits available for investors who establish their business in SEZs, including but not limited to: tax exemptions, plots of land with ready utilities, help with the paperwork, property tax exemption (only in some districts). Investors can be offered public aid for the investment, new workplaces as wells as non-investment activities, which include:
- Liu, X., Heilig, G. K., Chen, J., & Heino, M. (2007). Interactions between economic growth and environmental quality in Shenzhen, China's first special economic zone. Ecological Economics, 62(3), 559-570.
Author: Anna Opalińska