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A Study of Iranian`s Free Zones Throughput; Success or Failure in Achieving Proposed Goals?

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Author(s): Mehrzad Ebrahimi | Masoud Noonejad | Mahdi Ebrahimi

Journal: Journal of Applied Sciences
ISSN 1812-5654

Volume: 8;
Issue: 8;
Start page: 1576;
Date: 2008;
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Keywords: Free industrial and special economic zones | import/export | economy | Iran

ABSTRACT
Free Zones have been the tools by which many countries have overcome their economic crises and create new employment and reduce poverty without waiting many years for the whole economy to be reformed. Iran has been reconsidering its economical structures over time. Establishing Free Zones and especial economic zones in 1994 was a specific aspect of this effort. However, after more than ten years, it seems the predefined goals set by government not to be achievable and these zones have not been able to provide expected refinements in Iran`s economy. The aim of this study to look at the function of Iran`s zones in employment, domestic and foreign investment absorption, import and export which analyzed by related evaluation parameters. The assessment results showed that absorbing foreign investments by Iranian Free Zones can play positively significant effect on increasing employment rate in Iran. In spite of this fact, the results showed that Iran`s Free Zones were unsuccessful in absorbing foreign investment and appeared as the site of imports instead of exports and in fact have failed to achieve the predefined goals.

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