Editing Special economic zone (section)

== SEZ practical cases ==

=== Poland – East-Europe develop country  ===

In [[Poland]], Special Economic Zones (SEZs) were established to attract foreign investment and promote economic development. The primary goal of creating SEZs in Poland was to reduce [[structural unemployment]] and boost the economy in the poorest regions of the country. The main fiscal instruments used to attract FDI include tax breaks on corporate, personal income, and real estate taxes. These tax incentives can be applied for a period of 10 to 15 years. The Polish government created 14 SEZs, with the first becoming operational in 1995. Its creation resulted in the establishment of 55,000 new jobs and a significant increase in FDI, particularly in the automotive sector, as it attracted major industry players like [[General Motors]]. These zones are characterized by several attractive features, including high-quality infrastructure, a skilled [[workforce]], and various tax incentives such as tax exemptions on profits and property within specified limits.<ref>{{cite journal |publisher=ESPON |title=Policy brief: European special economic zones. |date=2020 |url=https://archive.espon.eu/sites/default/files/attachments/Policy%20Brief%20SEZ%20corr%2003-12.pdf}}</ref>

As of the end of 2014, the SEZs employed approximately 250,000 workers, demonstrating a significant increase from previous years. The cumulative investment in these zones was estimated at $23.3 billion by 2012. The Polish SEZs are regarded as some of the most competitive in [[Central Europe]], with consistent interest from investors, averaging around 100 new permits issued per year. This ongoing demand led the Polish government to extend the favorable regime associated with these zones for an additional six years. Each SEZ is managed by specific entities or agencies dedicated to their development (Structure and Management). Originally, the zones were set up for a period of twenty years, but this has since been extended to 2026. The Polish government has recognized the importance of these zones in maintaining a competitive edge in attracting investment.

The success of the Polish SEZs can be attributed to their strategic design and the incentives offered, which facilitate the establishment and operation of businesses, thereby contributing to regional economic growth and enhancing the overall investment climate in Poland.<ref name="academia.edu">{{cite journal |last1=Berlinguer |first1=Aldo |last2=Laera |first2=Roberto |last3=Vito Boccia |first3=Antonio |title=Special economic areas, best practices for attracting investment and flexible forms of employment. Economic impact in Albania |journal=Economic Impact in Albania |page=1 |url=https://www.academia.edu/37932151}}</ref>

SEZs in Poland are attractive to investors due to several factors:

* Quality Infrastructure: The zones are equipped with modern infrastructure that supports various industries, making them suitable locations for manufacturing and high-tech services.
* Skilled Workforce: There is a concentration of qualified workers in these areas, which is essential for businesses looking for specific expertise.
* Tax Incentives: Investors can benefit from significant tax exemptions, including exemptions on profits and property taxes within a certain limit. This financial incentive is a key factor in attracting both local and foreign companies.<ref>{{cite journal |last1=Lille |first1=Lydia Coudroy de |title=Les zones économiques spéciales en Pologne : un tremplin pour l'emploi régional ou des miettes de la mondialisation ? |journal=Annales de géographie |date=2007 |volume=658 |issue=6 |pages=645–666 |doi=10.3917/ag.658.0645 |url=https://shs.cairn.info/revue-annales-de-geographie-2007-6-page-645?lang=fr |language=fr |issn=0003-4010}}</ref>

=== Ireland – North-Europe developed country  ===

[[Ireland]] is often cited as a success story in the use of Special Economic Zones (SEZs) to attract foreign investment and stimulate economic growth, with the [[Shannon Free Zone]] as a notable example. Established in 1959, this zone is recognized as the first modern industrial free zone, designed to attract international capital into manufacturing and services, addressing the structural changes in air transport at the time. The Shannon Free Zone offered attractive tax conditions, including an exemption from taxes on export profits for 25 years and a highly competitive corporate tax rate. This strategy aimed to reduce [[bureaucracy]] and create a business-friendly environment, thus facilitating the establishment of foreign businesses in Europe.

The development of the zone was accompanied by modern infrastructure and integrated services, which allowed for improved operational efficiency for businesses. Industrial relations, characterized by an informal and cooperative approach, further strengthened this favorable environment. By 1968, the Shannon Free Zone employed nearly 4,000 people and played a key role in Ireland's exports, becoming a driver of economic growth. The Shannon Development agency continuously adjusted its strategy to ensure the competitiveness and sustainability of the zone, demonstrating its commitment to adapting to the needs of investors.

The Irish government also played a crucial role in the success of these zones, particularly through the [[IDA Ireland|Industrial Development Authority]] (IDA), which worked to position Ireland as an attractive destination for foreign investment. The Irish experience shows how targeted tax incentives, robust infrastructure, and a business-friendly environment can transform a country into a leading player in attracting foreign direct investment.<ref name="academia.edu"/>

=== Italy – South-Europe with developed country  ===

The case of Special Economic Zones (SEZs) in [[Italy]] is illustrated by the establishment of the SEZ in the [[Campania]] region, which marked the country's first such initiative. This SEZ was introduced through Legislative Decree No 91 on June 20, 2017, and became operational in 2018. Its main objective is to foster economic growth in the region by offering fiscal and administrative advantages to businesses operating within its defined areas. The Campania SEZ spans 37 [[municipalities]] out of the 550 in the region, covering a total area of 5,154 hectares. These zones were selected based on their strategic location near ports and transport hubs, aiming to enhance accessibility to logistical and industrial networks. The design of the SEZ focuses on improving infrastructure, especially to facilitate the movement of goods through road, rail, sea, and air transport.

One of the main features of the Campania SEZ is the array of benefits it offers to companies. Businesses within these zones enjoy various incentives, including exemptions from specific regulations and streamlined procedures for obtaining permits related to environmental, construction, and port operations. Tax credits are available, with higher benefits for larger enterprises and those in areas affected by natural disasters.

The key advantages for companies investing in the SEZs in [[Southern Italy]] include:

* Fiscal and Administrative Benefits: Companies operating within SEZs can benefit from various tax incentives and simplified administrative procedures. This includes exemptions from certain regulations related to environmental, landscape, building, and port concession authorizations
* Customized Tax Credits: The extent of tax credit advantages varies by zone and depends on the size of the company, with small companies receiving a maximum of 20% tax credit, medium-sized companies 15%, and large companies 10%. Additional benefits are available for regions affected by natural disasters, such as the 2016 earthquake.
* Access to Strategic Infrastructure: The SEZs are often located in areas with good transport accessibility, which is crucial for logistics and distribution. This includes proximity to major ports, interports, and transport networks, facilitating easier movement of goods.
* Focus on Local Economic Development: The SEZs are designed to stimulate industrialization and economic growth in the region, making them attractive for companies looking to invest in areas with potential for growth and development.
* Investment in Infrastructure: The ongoing and planned infrastructural improvements in the region aim to enhance connectivity and accessibility to and from SEZs, further supporting business operations.

The SEZ's effectiveness is linked to the region's transport accessibility, which has been carefully analyzed. Campania boasts a well-developed multimodal transport network, offering good connections both nationally and locally. However, challenges such as congestion at key transport nodes and access to intermodal facilities have been identified, which could impact the operational efficiency of businesses in the zone.

The Campania SEZ plays a significant role in Italy’s broader economic strategy, as highlighted by its inclusion in the National Recovery and Resilience Plan. This plan aims to provide substantial financial resources to strengthen SEZs and improve regional economies. The goal is to revitalize areas that face economic challenges by boosting industrial development and attracting foreign investment. Despite its advantages, the SEZ faces challenges related to transport bottlenecks, particularly during peak periods. Measures to address these issues, such as improving transport infrastructure and enhancing the efficiency of logistics networks, are being considered by policymakers.<ref>{{cite journal |last1=Buonocore |first1=Ciro |last2=Carlucci |first2=Fabio |last3=Ciciarelli |first3=Lucia |last4=Papola |first4=Andrea |last5=Tinessa |first5=Fiore |last6=Tocchi |first6=Daniela |last7=Trincone |first7=Barbara |title=Accessibility analysis in spatial planning: A case of special economic zones (SEZs) in Campania, Southern Italy |journal=Land Use Policy |date=2023 |volume=132 |doi=10.1016/j.landusepol.2023.106763 |bibcode=2023LUPol.13206763B |url=https://www.sciencedirect.com/science/article/pii/S0264837723002296|doi-access=free }}</ref>

===Albania – Developing country in the Balkans=== 

The development of SEZs in [[Albania]] is particularly interesting for several reasons. For Albania, SEZs represent a key instrument to stimulate [[Industrialisation|industrialization]], reduce unemployment, and modernize infrastructure. Strategically located along important trade routes connecting Europe to the Balkans, Albania’s SEZs position the country as a gateway for businesses looking to access markets in both [[Western Europe]] and the Mediterranean. These zones are also a way to attract advanced technologies, diversify the economy, and strengthen regional partnerships. 

From the EU’s perspective, Albania’s SEZs are significant for fostering economic stability and growth in the [[Balkans|Western Balkans]], a region with strategic importance for European integration. Supporting the success of SEZs in Albania can help reduce regional disparities, promote political stability, and align Albania’s economic policies with EU standards key steps as the country pursues EU membership sins years now. Additionally, the SEZs offer European firms an opportunity to establish operations in a cost-competitive environment while maintaining proximity to the EU market. <ref>{{cite journal |last1=Bartlett |first1=William |last2=Krasniqi |first2=Besnik A |last3=Ahmetbasic |first3=Jasmina |title=Study on Special Economic Zones (SEZs) in the Western Balkans |date=2017 |doi=10.13140/RG.2.2.17283.20003/1}}</ref>

In [[Albania]], the concept of Special Economic Zones (SEZs) is embodied by the "Technological and Economic Development Areas" (ZTSE), established under Law No. 54/2015. These zones aim to attract investments by creating favorable conditions for both local and foreign businesses. The ZTSE encompasses various economic activities, while excluding those that could harm the environment or national resources. They offer a distinct framework with specific fiscal and customs arrangements to promote industrial development and trade.  

Companies operating in these zones benefit from several incentives, such as a 50% deduction on profits for the first five years of activity and the ability to deduct 20% of annual [[Capital expenditure|capital expenditures]] over a three-year period from the start of operations. Goods of Albanian origin delivered to the area are treated as exports with a 0% VAT rate, and constructions within the area are exempt from property tax for five years. Additionally, employers can deduct 150% of wages and [[social security]] contributions paid to employees during their first year of activity, providing a significant incentive to reduce labor cost.   

The ZTSE are designed to offer flexibility in employment, allowing for atypical arrangements such as [[Part-time job|part-time or temporary contracts]]. This flexibility can enhance employment rates and boost the local economy. Among its development goals, the Albanian government is focusing on specific zones like [[Koplik]] and [[Spitale]] to stimulate regional economic activity and generate jobs.  

This economic incentive model seeks to create a favorable business environment, inspired by successful models elsewhere, such as the Shannon Free Zone in Ireland or the Special Economic Zones in Poland, which have demonstrated their effectiveness in attracting foreign investments and fostering local economic development. Ultimately, the ZTSE aim to leverage a combination of fiscal incentives, regulatory flexibility, and targeted development strategies to boost productivity and drive economic growth in Albania.<ref>{{cite journal |last1=Berlinguer |first1=Aldo |last2=Laera |first2=Roberto |last3=Vito Boccia |first3=Antonio |title=Special economic areas, best practices for attracting investment and flexible forms of employment. Economic impact in Albania |journal=Economic Impact in Albania |page=1 |url=https://www.academia.edu/37932151}}</ref>