2 minutos Most people consider tax incentives a fundamental competence of a special economic zone (SEZ) programme. Without them, is an SEZ even an SEZ? But research indicates tax incentives may not help SEZs much and can even harm the economy. Tax incentives come in two types: “income-based”, which reward companies’ profit, and “cost-based”, which reward their activities or investments. SEZs, especially in developing countries, have typically relied heavily on income-based incentives by granting generously reduced corporate tax rates or tax holidays. This aims to lower Continue lendo→

5 minutos A place-based policy that has long been part of the regional development toolbox can be traced to Ireland’s west coast – the home of the Shannon Free Zone. Launched in 1959, it is widely considered the first Special Economic Zone (SEZ). The Shannon project began as a response to developments in long-range aircraft technology as planes no longer needed to refuel in Shannon before continuing to major centres like London or Paris. A local entrepreneur advocated that the central government apply incentives Continue lendo→