Publication:
Moldova Trade Study: Note 4. The Performance of Free Economic Zones in Moldova

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dc.contributor.authorWorld Bank
dc.date.accessioned2016-04-05T19:12:19Z
dc.date.available2016-04-05T19:12:19Z
dc.date.issued2016-03-03
dc.description.abstractIn 1995, Moldova introduced free economic zone (FEZ) legislation with the aim of accelerating socioeconomic development by attracting domestic and foreign investment, promoting exports, and creating employment. Since then, seven free economic zones offering tax and customs benefits have been established. This note assesses the static and dynamic economic benefits of the program in Moldova. The free economic zones have been successful in attracting investment from both domestic and foreign sources. The economic zones have become true export platforms, generating a five-fold increase in exported industrial production from the zones between 2004 and 2014. On average, employment in the economic zones had a robust growth in the last seven years and almost doubled since 2008. Evidence suggests that the economic zones have significantly contributed to the diversification of exports and to the changing structure of the Moldovan economy. The effect of the economic zones on domestic firms appears to be modest, however, and unlikely to contribute to the technological upgrading and sophistication of the Moldovan economy. Free economic zones tend to attract industrial activities requiring intensive use of human resources for certain operations. The economic impact of Moldovan free economic zones is ambiguous. Moldovan legislation provides sound and transparent provisions, but the main issue is how this legislation is implemented. The majority of recommendations are focused on streamlining the implementation process, making it easier for companies to operate. Here are the main recommendations for improving the zones : (i) the importance of fiscal incentives should be downgraded by shifting to targeted services for businesses; (ii) reduce corruption and increase accountability by establishing one-stop-shop procedures and elements; (iii) establish a proper mechanism for monitoring and reporting with the zones residents and administrator; (iv) empower the regulator with additional relevant institutional capacities and capabilities; (v) the role of residents in appointing the administrator should be determinant; and (vi) establish a proper mechanism for compensating residents of the zones for restrictive treatment of the real assets.en
dc.identifierhttp://documents.worldbank.org/curated/en/2016/03/26076092/performance-free-economic-zones-moldova
dc.identifier.doi10.1596/24006
dc.identifier.urihttps://hdl.handle.net/10986/24006
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectTAX INCENTIVES
dc.subjectRENT SEEKING
dc.subjectEMPLOYMENT
dc.subjectRIGHTS
dc.subjectFOREIGN CAPITAL
dc.subjectEQUIPMENT
dc.subjectACCOUNTING
dc.subjectEXCISE TAXES
dc.subjectPRODUCTION
dc.subjectLOCAL ECONOMY
dc.subjectFOREIGN DIRECT INVESTMENTS
dc.subjectSTOCK
dc.subjectFOREIGN INVESTORS
dc.subjectNATIONAL ECONOMY
dc.subjectSTRUCTURAL CHANGE
dc.subjectINCOME
dc.subjectEXCHANGE
dc.subjectGDP PER CAPITA
dc.subjectINFORMATION
dc.subjectLABOR FORCE
dc.subjectEXPORTS
dc.subjectDOMESTIC MARKET
dc.subjectTAX COLLECTION
dc.subjectMONITORING
dc.subjectEXPORTERS
dc.subjectREVENUES
dc.subjectTAX BENEFITS
dc.subjectEFFECTS
dc.subjectINCENTIVES
dc.subjectINFORMATION TECHNOLOGIES
dc.subjectTAX
dc.subjectINPUTS
dc.subjectJOINT VENTURES
dc.subjectOWNERSHIP
dc.subjectINCOME TAX
dc.subjectGOVERNMENT SUPPORT
dc.subjectREGULATORY AUTHORITY
dc.subjectFREE TRADE
dc.subjectFOREIGN INVESTMENTS
dc.subjectTRENDS
dc.subjectDRIVERS
dc.subjectPRODUCTION PROCESS
dc.subjectDEVELOPMENT
dc.subjectLABOR MARKET
dc.subjectLONG TERM ASSETS
dc.subjectTRAINING
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectEXTENSIVE
dc.subjectECONOMIC BENEFITS
dc.subjectRENT
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectPERSONAL INCOME
dc.subjectPRODUCTIVITY
dc.subjectTRANSFERS
dc.subjectECONOMIC POLICIES
dc.subjectTRADE POLICY
dc.subjectSTANDARDS
dc.subjectLABOR
dc.subjectTAX REVENUES
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectTAX COLLECTIONS
dc.subjectRESERVES
dc.subjectTRADE COMPETITIVENESS
dc.subjectFINANCE
dc.subjectEFFICIENCY
dc.subjectTAXES
dc.subjectTRANSACTIONS
dc.subjectEXPORT FLOWS
dc.subjectINCOME TAXES
dc.subjectINVESTORS
dc.subjectVALUE ADDED
dc.subjectGOOD
dc.subjectFRAUD
dc.subjectWAGES
dc.subjectPOLICIES
dc.subjectFINANCIAL CRISIS
dc.subjectFUTURE
dc.subjectVALUE
dc.subjectCOMPETITIVENESS
dc.subjectRETURNS
dc.subjectCREDIT
dc.subjectFOREIGN INVESTMENT
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectTRADE PROTECTION
dc.subjectINVESTMENT PROJECTS
dc.subjectSMALL INVESTORS
dc.subjectAGRICULTURE
dc.subjectECONOMY
dc.subjectTAX RATES
dc.subjectEMPLOYMENT GROWTH
dc.subjectJOB CREATION
dc.subjectSHARES
dc.subjectASSETS
dc.subjectDEFAULT
dc.subjectMARKET
dc.subjectFOREIGN EXCHANGE
dc.subjectEMERGING
dc.subjectECONOMICS
dc.subjectEXPORTER
dc.subjectLONG-TERM INVESTMENTS
dc.subjectMANAGEMENT
dc.subjectINFRASTRUCTURE INVESTMENTS
dc.subjectTAXATION
dc.subjectECONOMIC DEVELOPMENT
dc.subjectTRADE
dc.subjectINTERESTS
dc.subjectGDP
dc.subjectGOODS
dc.subjectINVESTMENT
dc.subjectRISK
dc.subjectHUMAN RESOURCES
dc.subjectSHARE
dc.subjectINVESTMENT CLIMATE
dc.subjectCOLLATERAL
dc.subjectINVESTMENT ACTIVITY
dc.subjectTARIFF
dc.subjectTANGIBLE ASSETS
dc.subjectSUPPLY
dc.subjectFOREIGN WORKERS
dc.subjectTRADER
dc.subjectPRIVATE INVESTORS
dc.subjectINNOVATION
dc.subjectFOREIGN COMPANIES
dc.subjectLAW
dc.subjectPROFIT
dc.subjectINVESTMENTS
dc.subjectUNFAIR COMPETITION
dc.subjectSUPPLIERS
dc.subjectINSTITUTIONAL CAPACITIES
dc.subjectDIRECT INVESTMENTS
dc.subjectOUTCOMES
dc.subjectPOSITIVE EFFECTS
dc.subjectGUARANTEE
dc.subjectLONG-TERM ASSETS
dc.subjectBENEFITS
dc.subjectINVESTING
dc.titleMoldova Trade Studyen
dc.title.subtitleNote 4. The Performance of Free Economic Zones in Moldovaen
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleMoldova Trade Study
okr.date.disclosure2016-03-15
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Foreign Trade, FDI, and Capital Flows Study
okr.docurlhttp://documents.worldbank.org/curated/en/2016/03/26076092/performance-free-economic-zones-moldova
okr.guid697401467999092957
okr.identifier.doi10.1596/24006
okr.identifier.externaldocumentum090224b084310464_3_0
okr.identifier.internaldocumentum26076092
okr.identifier.report103998
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2016/03/16/090224b08420488e/1_0/Rendered/PDF/The0performanc0ic0zones0in0Moldova.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryMoldova
okr.sectorIndustry and trade
okr.themeTrade and integration :: Trade facilitation and market access
okr.themeTrade and integration :: Export development and competitiveness
okr.themeTrade and integration :: Regional integration
okr.themeFinancial and private sector development :: Technology diffusion
okr.topicMacroeconomics and Economic Growth::Investment and Investment Climate
okr.topicSocial Protections and Labor::Labor Policies
okr.topicInternational Economics and Trade::Trade Policy
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicPrivate Sector Development::Competitiveness and Competition Policy
okr.unitT&C GP-Europe East - IBRD (GTC10)
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