Free zones are economic and commercial areas with their own rules, established by countries in regions with appropriate infrastructure and superstructure for purposes such as developing international trade, contributing to the national economy, attracting foreign investments, accelerating the flow of goods and services in the world, providing cost advantages, realizing technology transfers, increasing foreign exchange revenues; often separated by thick lines from customs and legislation determined by law in countries and supported by some incentives.
It is known that there are currently more than 4500 free zones in the world. Free zones may appear in different forms according to their characteristics and establishment purposes. However, since their main purpose of establishment is similar, it is a correct approach to evaluate them all under the title of free zone. In general, free zones in the world can be seen in the following forms:
- Free City
- Free Port
- Free Trade Zone
- Free Production Zone or Export Processing Zone
- Free Investment Zone
- Bonded Warehouse
- Customs Outlet
- Twin Factories (Maquiladora)
- Free Banking Zone or Off-shore Banking
- Free Insurance Zone
- Free Transit Zone
- Special Economic Zone
Special economic zones, a new type of zone that has emerged in recent years, have become more complex zones that are intertwined with technology, include universities, and conduct intensive R&D activities. It is also possible to see high-tech companies in these zones. In Turkey, there are currently 18 active free zones. The volume of trade in these zones is also high. Generally, the regions where industrial and agricultural production activities are carried out also contribute to the country's trade. In addition, these regions are important business areas preferred by businesses due to the incentives provided.
Çağlar KARAKURT
Research Assistant
Istanbul Gelisim University
Faculty of Economics, Administrative and Social Sciences
Department of International Trade and Business
Çağlar KARAKURT
Research Assistant
Istanbul Gelisim University
Faculty of Economics, Administrative and Social Sciences
Department of International Trade and Business
