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Special Economic Zones in the Russian Far East Four Years on: Current Status, achievements and challenges (Summary)

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ERINA REPORT PLUS

ARAI Hirofumi

Director and Senior Research Fellow, Research Division, ERINA

SHIDA Yoshisada

Associate Senior Research Fellow, Research Division, ERINA

This paper provides a preliminary evaluation of the current status, achievements, and challenges of the special economic zones in the Russian Far East. The Advanced Special Economic Zones (TOR) and the Free Port Vladivostok (SPV), were established through policy instruments introduced in 2015 to promote regional development. Since then, more than a thousand companies have become residents of these zones, giving us valuable knowledge and insights. We conduct a detailed analysis of the dataset of resident registers and reveal unique features different from other similar instruments applied outside the Russian Far East. We also investigate anecdotal evidence and court cases between residents and the managing companies of TOR and SPV, discuss the problems companies face, and also the reasons why some residents leave the zones.

Keywords: Russia, Russian Far East, Special Economic Zones, regional development, priority development zone, Vladivostok free port JEL classification: O14, O22, O25, L52, L16, M32

Special Economic Zones in the Russian Far East Four Years on: Current Status, achievements and

challenges (Summary)

ERINA REPORT PLUS No.150 2019 OCTOBER

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