These are designated geographic areas within a country that operate under different economic regulations than the rest of the nation. These zones typically offer incentives, such as reduced taxes and tariffs, and simplified administrative procedures to encourage foreign investment and trade. For example, a coastal region might be established with relaxed export regulations to attract manufacturing companies seeking access to global markets.
The purpose of these areas is to promote economic growth by attracting foreign direct investment, boosting exports, creating jobs, and fostering technological innovation. Historically, they have played a significant role in the economic development of various countries, particularly in East Asia, by serving as engines of industrialization and gateways to global trade networks. Their establishment can lead to increased regional prosperity and improved living standards.