Special Economic Zones: A legal framework analysis

Abstract

With the increasing number and importance of special economic zones worldwide, more and more countries are thinking about establishing their own zones or improving their existing zones. This paper shows the model structure of a legal framework needed for such zones and gives corresponding recommendations. For this purpose, more than 80 laws from over 50 countries were analysed regarding to their commonalities. This results in a basic model scheme with different possibilities for individual deviation. Due to these deviations, which are adapted to the respective needs of each country, it is therefore not possible to develop a universal perfect law. Nevertheless, there are 3 points that seem essential for a successful zone law. These are the special tax incentives, the reduction of national regulatory complexity and the option of private participation in organization and operation of each zone.