(The role of free zones in trade balance transactions – experiences of selected countries with the possibility of benefiting from them in Iraq)
Introduction letter
To the Council of the College of Administration and Economics at the University of Kerbala, which is part of the requirements for obtaining a master’s degree in economic sciences
Submitted by the student
Bashar Hattab Adhim Al-Falsaly
Supervised by
Prof.Dr
Ammar Mahmoud Hamid Al-Rubaiy
Abstract:
Based on the philosophy that revolves around the liberalization of foreign trade and economic openness, it has become self-evident that any country cannot be isolated from the world. Therefore, free zones are considered one of the aspects of economic development, especially since the countries of the world are witnessing today an acceleration in the movement of economic changes and the intensity of economic competition in order to create more… Liberalization of foreign trade.
Today, free zones have become widespread in many countries of the world and have become used as a tool for developing the economy, through which it is possible to raise the volume of exports and imports, improve the reality of the trade balance, transfer technology, reduce the unemployment rate, increase the country’s inputs of hard currency, and other goals that can be achieved by establishing the zones. There are many successful experiences in this field that can be benefited from, and one can benefit from the project to establish a free zone to support and develop trade, the trade balance, and the rest of the sectors in any economy, in order to enjoy the advantages and capabilities that free zones offer to support the national economy.
Iraq is a country that has a large oil reserve, and the government relies mainly on oil revenues for its expenditures (a rentier economy). This results in an imbalance in the sectoral structure, neglecting the rest of the sectors and paying attention to the oil sector. From this standpoint, we go to search for solutions to the existing problem through free zones, as they are a gateway to establishing activities. And projects, attracting local, Arab and foreign capital and direct foreign investments, and establishing industrial, commercial and service activities, which in turn will contribute to raising the rates of exports and imports and stimulating the local industry by paving the way for it to compete with industries in the free zones and benefiting from the backward and forward links between the local industry and the industry in the free zones and increasing The host country’s hard currency receipts, benefiting from the employment of unemployed workers, as well as optimal exploitation of the resources available in the country, developing the skills of the workforce, and developing the local industry through the introduction of modern and advanced technology and other matters that can contribute to supporting the national economy and developing the economic sectors. In particular, the industry, trade and agriculture sector, and thus we have achieved the goal of correcting the structural imbalance, developing the volume of trade exchange, and improving the country’s trade balance by establishing free zones in appropriate locations after extensive study and economic feasibility study of each site in order to achieve the goals required for establishing free zones in Iraq.
