Free zones like a mechanism of foreign investment

Abstract

Free zones, legal figure - Economic of Latin American origin, have been and are to Colombia, a stimulus for the economy as they enter through the large country foreign capital that generate high expectations about the benefits to be shed on the population Colombian. These benefits are perceived in terms of employment, transfer of knowledge and technology, among others. However, there seems to be not a proportional relationship between the foreign investments made and jobs generated by them. However, its benefits to the economy are visible in the generation of wealth and increased competitiveness of the Colombian business community. Moreover, policies and established standards for free zones have had the powerful effect of promoting foreign investment far more than expected, causing many companies conduct their operations under this figure. Changes in the rules governing these entities, such as the recent tax reform, may dampen the sector by increasing their tax burden. In general, free zones are and will be for the Colombian economy, a controversial, versatile and lightest element, to encourage the development of the country.