Free zones of the Republic of Serbia - business results 2011-2021 and future development

  • Aleksandar Simonovic Megatrend univerzitet, Fakultet za menadzment Zajecar, doktorand, simonovic72@gmail.com
  • Dragan Kostic
Keywords: Free zones, Special Economic zones, Invest in Serbia

Abstract


Free zones are an effective economic instrument that provide the host country with a rapid influx of investments, increased employment, access to new technologies, education, work, industrialization and increased exports. Serbian free zones specialize in industrial production intended for export. They provide their tenants (companies who use the zones) with ease in doing business by exempting them from customs and tax duties. Within certain free zones in Serbia, there are benefits offered by local self-government and they can contribute to a more favorable investment environment compared to other locations.

About 10,000 free zones in the world participate in the daily battle for investors, including 82 free zones in the European Union. By offering various services, free zones fight to retain existing and attract new investors, and the platform of free zones provides the fastest and most practical way of flexible development in international trade and increasing the attractiveness of countries for productive international investments.

A detailed analysis of the results of the establishment and operation of free zones in Serbia has never been done until now. Previous analyzes were limited to textual and tabular presentations of the results of free zone operations in the previous year and did not provide any relevant conclusions and did not propose measures to improve the operation of both free zones and free zone user companies, nor the applied concept of free zones in Serbia. 

References

Bulajić, S. (2014) Designing and positioning of free zones in conditions of globalization of international trade, Alfa University

Chamber of Commerce and Industry of Serbia and Economic Institute (2021), Macroeconomic Analyses and Trends No 317, Belgrade

Directorate-General for Neighborhood and Enlargement Negotiations (2017), Study on Special Economic Zones in the Western Balkans

Ilić, B. (2020) Management of safety and health at work - a case study Pirot Free Zone, IV scientific conference Regional development and cross-border cooperation, Pirot 2020, Pirot Chamber of Economy

Kostadinović I, Petrović-Randjelović M. (2015) The role and importance of free zones in economic development: The experience of the Republic of Serbia and the European Union, Ekonomika vol 61, 97-108

Kostić, D. (2005): The influence of free zones on increasing employment and direct foreign investments, master's thesis, Megatrend University

Kostić, D. (2008): Free production zones and industrial parks, Megatrend University, Faculty of Management

Kostić, D, Petrović Z, Simonović A. (2009) Sustainability study, Communication strategy and Investment plan for the formation of the Economic Zone Pirot, Neighborhood program Bulgaria - Serbia, Interreg IIIA/Phare CBC, "Investment conference" within the project: "Successful model of economic cross-border cooperation"

Kostić, D. (2010) Balanced regional development through the synergy of free zones, industrial parks and logistics centers - the case of the Pirot Free Zone, XV Scientific Conference Regional Development and Demographic Flows of Southeast European Countries, Faculty of Economics, University of Niš, 190-203

Kostić, D. (2011): Strategy for the development of free zones in the function of regional development, 16th Scientific Conference Niš, Regional Development and Demographic Trends of Southeast European Countries, Faculty of Economics, University of Niš, 316 – 333.

Kostić, D. (2020) Synergy of special economic zones, industrial parks, free zones and logistics centers, New World Model – The Future of Industry conference, World Free Zones Organization, Dubai 2020.

Kostić, D. Simonović, A. (2021) Free economic zones, a new development path for Serbia's free zones, 5th scientific conference "Regional development and cross-border cooperation", Serbian Academy of Sciences and Arts, 445-460

Ministry of Finance of the Republic of Serbia (2010-2021), Reports on the Business of Free Zones of Serbia, Belgrade, Administration for Free Zones

Mohiuddin, Muhammad (2014) The Special Economic Zone as a Locomotive for Green Development in China, Asian Social Science, 10 (18).

Nazarcuk, J.M., Uminski, S. (2019). Foreign Trade in Special Economic zones in Poland, UWM, Olsztin

Republic of Serbia Ministry of Finance, Sector for macroeconomic and fiscal analyzes and projections (2021) Current Macroeconomic Movements

Schwab, K. (2015) The Fourth Industrial Revolution, What It Means and How to Respond, European Commision 

United Nations Conference on Trade and Development (2019), World Investment Report 2019 – Special Economic Zones, Geneva

 

Published
2022/11/30
Section
Original Scientific Paper