IMPACT OF FREE ECONOMIC ZONES ON REGIONAL ECONOMIC DEVELOPMENT: THE CASE OF KLAIPEDA FREE ECONOMIC ZONE IN LITHUANIA

Reference: Navickas, V., Petrokė, I., Bačiulienė, V., (2021). Impact of free economic zones on regional economic development: the case of Klaipeda free economic zone in Lithuania. International Journal of Entrepreneurial Knowledge, 9(1), 97-111. Doi: 10.37335/ijek.v9i1.120

Authors

DOI:

https://doi.org/10.37335/ijek.v9i1.120

Keywords:

free economic zone, regional development, competitive advantage, algorithm, Lithuania

Abstract

The rapid growth of cooperation among countries, globalization, and integration has been some of the most significant indicators for the growing importance of free economic zones [FEZs] in the system of world economic relations. However, despite the advantages provided by FEZs, not all countries can successfully exploit the potential of FEZs. It is noticed that state institutions are hesitant to establish special purpose economic zones due to the difficulty of measuring the benefits of FEZs. This article aims to explain the phenomenon of the FEZ impact on regional economic development. In this article, based on the correlation analysis an algorithm is developed according to the interfaces illustrating the highest determination coefficient. The algorithm provides an opportunity to reveal the dependence on regional economic development from FEZs activity. The study reveals that the most critical FEZs activities that significantly impact regional economic development are the amount of attracted foreign direct investments [FDI], the number of companies operating in FEZ and jobs created in the zone.

Author Biographies

Valentinas Navickas, School of Economics and Business, Kaunas University of Technology, Lithuania

Prof. Ing. Dr. Valentinas Navickas

Doctor of social sciences (economics), professor at Kaunas University of Technology (Lithuania), School of Economics and Business. E-mail: valna@ktu.lt. Author of more than 360 scientific publications (including monographs published in the Czech Republic in 2013 and Slovak Republic in 2016, 2018) and scientific articles published in Lithuania and abroad. Prepared 7 doctors of social (economics) science; now, he is a research adviser of 3 persons maintaining a doctor’s thesis of social (economics) science. Fields of scientific interest: free economic zones, clusterization, development economics, competitiveness, economic growth.

Ieva Petrokė, School of Economics and Business, Kaunas University of Technology, Lithuania

School of Economics and Business, Kaunas University of Technology, Lithuania, e-mail: ieva.petroke@gmail.com. Fields of scientific interest: economic growth, development economics, sharing economy, free economic zones.

Vaida Bačiulienė, School of Economics and Business, Kaunas University of Technology, Lithuania

School of Economics and Business, Kaunas University of Technology, Lithuania, e-mail: vaida.baciuliene@gmail.com. Fields of scientific interest: economic growth, development economics, sharing economy.

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Published

2021-06-30