THE EFFICIENCY OF SPECIAL ECONOMIC ZONES OF INDUSTRIAL PRODUCTION

Abstract

This study investigates the efficiency of special economic zones (SEZ) of industrial production as an instrument of economic development. It substantiates methodology for assessing the activities of such SEZ, taking into account their contribution to the economy of the region. The methodology is based on that of the Ministry of Economic Development, but it includes the type of SEZ and regional features. The hypothesis is that the efficiency of these SEZ is influenced by the production conditions in the region and the phase of the SEZ life cycle. To confirm the hypothesis, the methods of coefficient analysis, expert assessment, formal ordering in constructing a rating based on private and integral indices, and minimax normalization were used. The study found that the performance of SEZ enterprises can be observed in terms of newly created jobs, investment volume, and total revenue; international performance by production, financial, infrastructural, and employment conditions; and regionally by the income of residents, the amount of taxes they pay, and investments attracted by residents. The final assessment indicates the effective functioning of 80% of SEZ. Activities are identified that are insufficiently assessed by the Russian Ministry of Economic Development as it ignores their contribution to the development of the regional economy. In some zones, considering regional factors and the contribution to regional development determines the ability to achieve growth.