Special Economic Zone

Special Economic Zones: Essences and Possibilities

FULL PAPER

Irina Mikhalchenko

Student of 2nd course
University of International Business
050043, Navoi 296-41, Almaty, Kazakhstan
7 727 299928
E-mail: [e-mail]

Abstract This paper analyzes necessity and need for creation of special economic zones during the period of formation of a model of an open economy on the example of the Republic of Kazakhstan. Period of fundamental changes in economy during transition from closed to open economic systems is studied. The role, essence and possibilities of special economic zones are considered. The study and analyses of operating special economic zones in Kazakhstan are made. The paper concludes that special economic zones will bring positive impact just in case of deep analyses and study all the possibilities and threats.

Key words: special economic zone, integration, development JEL Classification: F15

Introduction

Today is era of globalization and integration of world economy. Countries all over the world are interconnected. Today is the right time for developing countries to gain potential and economic power, and on the other hand, there are plenty opportunities for developed countries to invest and make profit.

Many developing countries are going through the process of fundamental changes and integration into the world economy. The governments of developing countries should be very careful and forward-looking. There are many ways to stimulate domestic economy and provide economic growth. Special economic zones can serve as an effective instrument of strengthen the national economy through possibilities of external activity.

However, the creation and functioning of special economic zones can bring as positive as negative impacts. World practice shows that hot all special economic zones brought successful results. Formation of a special economic zone should be deeply analyze and

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