Development of Belarusian free economic zones: integration into the national economy and EAEU

About the author:

Elena F. Kireeva, Dr. Sci. (Econ.), Professor, Associate Director, Institute for Research of Social and Economic Changes and Financial Policy, Financial University under the Government of the Russian Federation, Moscow, Russia; efkireeva@fa.ru, https://orcid.org/0000-0003-2917-7347

Abstract:

In the conditions of global economic and political turbulences, one of the most important aspects of economic development is the struggle for attracting investments. Changes in economic development models and humanitarian shocks affect the mechanisms of attracting capital. Free economic zones (FEZs) have a sufficiently large experience of functioning in the global economic system. FEZs acquire relatively new features in the ongoing economic processes, while regional economic integration has significant importance in terms of their functioning. The influence of integration processes on the FEZs’ development in the post-Soviet space has not been studied sufficiently, which the present research aims to solve. This article analyzes the features of the Belarusian FEZs forming and functioning in regional interaction within the Eurasian Economic Union (EAEU). Based on the Russian ad global world research, reports by international financial organizations, and legal acts regulating this sphere, the international economic integration is studied as the foundation for the FEZs’ development. The experience of the European Union (EU) as an integrative formation in regulating the functioning of national FEZs is studied. Special attention is paid to the main approaches to implementing state economic policy in relation to Belarusian FEZs. Additionally, the author analyzes their main economic indicators and identifies the problems of the current state. The results show the need to modernize FEZs considering integration aspects, presenting prospects for developing national FEZs and their functioning within the integrative interaction of the EAEU.

References:

Adigamova, F. F., Andreeva, M. Yu., Balandina, A. S., et al. (2017). Special economic zones. Global and Russian experience: university textbook. Vol. 2. Yuniti-Dana. [In Russian]

Treaty on the Eurasian Economic Union, May 29, 2014. Legal Reference System “ConsultantPlus”. Retrieved Jun. 2, 2024, from https://www.consultant.ru/document/cons_doc_LAW_163855/ [In Russian]

On free economic zones: law of the Republic of Belarus dated Dec. 7, 1998, No. 213-Z. National Legal Internet Portal of the Republic of Belarus. Retrieved Jan. 19, 2024, from https://pravo.by/document/?guid=11031&p0=H19800213 [In Russian]

National Statistical Committee of the Republic of Belarus. (n.d.). Main indicators of activity of residents of free economic zones of the Republic of Belarus. Retrieved Jan. 19, 2024, from https://www.belstat.gov.by/ofitsialnaya-statistika/makroekonomika-i-okruzhayushchaya-sreda/statistik... [In Russian]

Treaty on the issues of free (special) economic zones in the customs territory of the customs union and customs procedure of a free customs zone, Jun. 18, 2010. Legal Reference System “ConsultantPlus”. Retrieved Jun. 2, 2024, from https://www.consultant.ru/document/cons_doc_LAW_102087/c059ae608a81e3752cc53855cc1f764d3b62c7f9/ [In Russian]

Balasubramanyan, V. N. (1988). Export processing zones in developing countries: Theory and empirical evidence. In D. Greenway (Ed.), Economic development and international trade (pp. 158–159). Macmillan.

Butler, S. M. (1980). Enterprise zones. The Heritage Foundation.

Chen, Xiangming. (1995). The evolution of free economic zones and the recent development of cross-national growth zones. International Journal of Urban and Regional Research, 19(4), 593–621. https://doi.org/10.1111/j.1468-2427.1995.tb00530.x

European Commission, & Directorate-General for Taxation and Customs Union. (2023). Study of the impact of free zones and proposals for guidelines on their future modernisation in light of the European Green Deal. Final report. Publications Office of the European Union. https://doi.org/10.2778/649828

Fernstrom, J. R. (1976). The establishment of free trade zones in promoting industrial development [Thesis, Industrial Development Institute, University of Oklahoma].

Gad, R., & Radloff, W. (Oct. 11, 2013). Legal times. The Times, 1.

Grubel, H. G. (1982). Towards a theory of free economic zones. Review of World Economics, 118(1), 39–61. https://doi.org/10.1007/BF02706078

Hamilton, C., & Svensson, L. E. O. (1982). On the welfare effects of a duty-free zone. Journal of International Economics, 13(1–2), 45–64.

Lipsey, R. G. (1960). The theory of customs unions: A general survey. The Economic Journal, 70(279), 496–513. https://doi.org/10.2307/2228805

McCalla, R. J. (1990). The geographical spread of free zones associated with ports. Geoforum, 21(1), 121−134.

Meng, Guangwen. (2003). The theory and practice of free economic zones: A case study of Tianjin, people’s Republic of China [Thesis].

Rabani, F. A., et. al. (1983). Economic and social impacts of export processing zones in Asia: An evolution. Asian Productivity Organization.

Spinanger, D. (1984). Objectives and impact of economic activity zones — Some evidence from Asia. Kiel Working Paper, 120(1), 64–89. https://doi.org/10.1007/BF02706563

European Commission. (n.d.). The Union Customs Code (UCC). Retrieved Jan. 19, 2024, from https://taxation-customs.ec.europa.eu/union-customs-code-ucc-introduction_en

Thoman, R. S. (1956). Free ports and foreign trade zones. Cornell Maritime Press.

Viner, J. (1950). The customs union issue. Carnegie Endowment for International Peace.

Zeng, D. Z. (2015). Global experiences with special economic zones — With a focus on China and Africa. The World Bank. Trade and Competitiveness Global Practice. Retrieved Jan. 22, 2024, from https://www.worldbank.org/content/dam/Worldbank/Event/Africa/Investing%20in%20Africa%20Forum/2015/in...

Zhan, Qicheng. (1992). The special economic zones of various countries in the world. In Baike Zhishi (pp. 5–12).