Special Economic Zones as drivers of economic development

Abstract

This paper aims to analyze special economic zones as drivers of economic development in Venezuela. To this end, a qualitative study was conducted consisting of a literature review and an interview with an expert from the China Institute of Regional Development and Planning. The results reveal that Special Economic Zones can be catalysts for economic growth by promoting investment, generating employment, and fostering the development of specific sectors in defined geographical areas. By offering tax incentives, administrative facilities, and favorable regulations, they can attract foreign direct investment to the country, contributing to economic and technological development. In addition, Special Economic Zones facilitate international trade by offering special customs regimes, tariff reductions, and other measures that promote the import and export of goods and services, thereby increasing exports and improving the country's trade balance. Therefore, despite Venezuela's great potential due to its privileged geographical location and enormous natural resources, for Special Economic Zones to be successful, it is necessary to create conditions that promote the country's economic growth and development. To this end, the Venezuelan government must invest in infrastructure, guarantee a reliable supply of electricity and drinking water, build communication routes and transportation systems, strengthen the legal institutional framework and legal certainty, and streamline procedures to respond quickly to requests from companies participating in the Special Economic Zones. Otherwise, the initiative will not be successful.