Experience Evaluation and Guideline Model

Transcription

1 - INVESTMENT & FINANCE INSTITUTE Arab Academy for Soence, Technology & Maritime TranSl)Ort Special Economic Zones: From China to Egypt Experience Evaluation and Guideline Model A thesis submitted to the Investment and Finance Institute In partial fulfillment for the Degree of Master of Science In Investment Submitted by MennataUah Moones Mohamed Atteya Supervised by Dr. Ashraf Salah Prof. Dr. Ayman Ragab 2013

2 This copy of the thesis has been supplied on condition that anyone who consults it is understood to recognize that its copyright rests with its author and that no one quotation from the thesis and no information derived from it may be published without the author's prior consent.

3 Discussion Committee 1- Prof. Dr. Ismail Hussein 2- Prof. Dr. Shehata el Sayed 3- Dr. Ashraf Salah (External Examiner) (Internal Examiner) (Supervisor) II

4 Author's declaration At no time during the registration for the Master Degree has the author been registered for any other university award. This thesis has a word count of 20, 520 approximately. Signature: J( "-'1 OCf1.o D~ e.0 Date: ;:t(t; /cqcq 13 III

5 Dedication To my Mother, Father, Grandmother's blessed soul and Husband whose moral support, patience and encouragement were very important and pushed me to complete this work And special dedication and gratitude to my supervisor Dr Ashraf Salah to whom I am heavily indebted for his readily, offered support and encouragement. IV

6 ABREVIATIONS AECC Agreement For Economic and Commercial Cooperation BOT Built - Operate and Transfer CADFUND China Africa Development Fund CIPA China Investment promotion Agency CIT Communication and Information Technology COMESA Common Market for Eastern and Southern Africa EPZ Export Processing Zone FDI Foreign Direct Investment FTZ Free Trade Zone GAFI General Authority for Investment GAFTA Grand Arab Free Trade Agreement GDP Gross Domestic Product GIPC Ghana Investment promotion Center v

7 KOTRA Korea Trade Investment promotion Agency MDC Main Development Company MENA Middle East North Africa MNC Multinational Corporation MOFCOM Chinese Ministry of Commerce MOU Memorandum of Understanding NPC National People's Council OCIPED Omani Center for Investment Promotion and Export Development OECD Organization for Economic Cooperation and Development PNA Pudong New Area PPP Public and Private Partnership PRC People's Republic of China QIZ Qualified Industrial Zone SEZ Special Economic Zone TEDA Tianjin Economic and Development Area UNCTAD United Nations Conference on Trade and Development VI

8 UNIDO United Nations Industrial Development Organization WAIPA World Association of Investment Promotion Agencies WTO World Trade Organization VII

9 SPECIAL ECONOMIC ZONES: FROM CHINA TO EGYPT EXPERIENCE EVALUATION AND GUIDELINE MODEL Mennatallah Moones Atteya ABSTRACT Foreign Direct Investment (FDI) has played a vital role in boosting economic development and growth for many nations over the past few decades. Establishing Special Economic Zones (SEZ's) was a main policy that has been used by Chinese government since economic reform in 1978 to attract more FDI and boosting exports. After the visit of the Egyptian former President Mubarak to China in 1999, Egypt has developed its own model of SEZ in 2002 in North West Suez Gulf in order to be the robust hub for foreign investments in Egypt. Many challenges are facing Suez SEZ especially the lack of infrastructure and utilities, the complicated investment procedures, the modest level of provided services, and the poor promotional capabilities. The objective of this thesis is to give an overview on three successful models of SEZ's in China: Shenzhen, Pudong and Tianjin Economic technological Development Area (TEDA) highlighting their common features and main factors that led them to achieve great figures of attracting FDI and economic growth, and evaluating the Egyptian experience of SEZ, standing upon main challenges and obstacles facing it and defining main advantages and opportunities of success. This study presents a guideline model of a successful SEZ based on the Chinese experience, and main conditions that must exist to establish SEZ. A SWOT analysis was made to identify the strengths, weaknesses, opportunities and threats in Suez SEZ according to the model, in order to evaluate its performance and give the necessary recommendations to the Egyptian government to enhance the performance of Suez SEZ. VIII

10 TABLE OF CONTENTS List of Tables List of Figures XI XII Chapter One: Introduction 1.1 Introduction 1.2 Study Importance 1.3 Study aim 1.4 Research Problem 1.5 Literature Review 1.6 Research Outlines Chapter Two: Theoretical Framework: SEZ's: Definition, History and International Recognition What is SEZ? Definitions of SEZ Distinction between SEZ and other concepts Free Trade Zone Export Processing Zone Industrial Park Investment Zone History of SEZ's SEZ's international Recognition Chapter Three: FDI and SEZ's In China Introduction Economic Reform and SEZ's in China FDI in China Incentives Improving Doing Business Legal System SEZ's in China: Successful Models Shenzhen Pudong New Area Tianjin Economic and Technological Area (TEDA) Chapter Four: FDI and SEZ in Egypt FDI in Egypt Egypt in International Reports IX

11 SEZ in Egypt: Historical Background Egypt's SEZ Main Characteristics Location The Organization and Control Development Method Labor Source of SEZ SEZ One Stop Shop Access to International Key Markets Targeted Clusters in SEZ SEZ in Egypt Evaluation and Value Proposition Challenges facing SEZ Chinese Role in Suez SEZ Chapter Five: A Guideline Model for Egypt's SEZ Introduction A successful SEZ: A Guideline Model Geographic location Doing Business Services Investment Promotion Transparency of Information Chapter Six : Conclusion, Recommendations and Limitations of the Study Summary General findings SWOT analysis for SEZ in Egypt Main recommendations Geographic Location Doing Business Services Investment promotion Transparency of Information Limitations of the Study References Appendices x

12 LIST OF TABLES # Table Name Chinese African Trade and Cooperation Zones List of Incentives in Suez SEZ Companies Established in Suez SEZ Page XI

13 LIST OF FIGURES # Figure Name Page 2-1 Regional Setting of Chinese SEZ's FDI inflows in China FDI source in China Utilized FDI in Shanghai TEDA location FDI inflows to Egypt SEZ in North West Suez Gulf SEZ Guideline Model Suez SEZ SWOT analysis 77 XII

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20 DIS AT-SP C2 SPECIAL ECONOMICS ZONES FROM CHINA TO EGYPT EXPERIENCE EVALUATION AND GUIDELINE 78634