Explaining functional-spatial failures of free zones with emphasis On trade and commerce (Case Study: Aras Free Trade Zone)

Document Type : Qualitative Research

Authors
R. Jahani 1
S. jahanidowlatabad 2
1 Kharazmi University of Tehran
2 Faculty Member of Mohaghegh Ardebil University
Abstract
Extend Abstract:

Introduction



Aras Free Zone with economic activities in different areas, like other free zones, though rooted in classical and neoclassical theories, and Adam Smith's free trade theory, in particular, plays a decisive role in establishing it, but ignoring the principles governing the structure , Its function and its spatial evolution, is a kind of fall in the same abyss of absoluteism in the form of maximizing the profit and utility of individuals. From the perspective of this study, the root of functional failure in the free zone is the spatial patterns of its economic activity. One of the major areas of activity in the free zones is the trade and commerce sector, which has considerable scope in the Aras Free Zone. This paper intends to discover the functional-spatial imperfections and the logic of its formation in the commercial spaces of the Aras Free Zone, in order to provide an appropriate implementation of the objectives for the region.



Methodology

This study is an exploratory research in nature and catagorised iv fundamental-applied research type. The discovery of the mechanisms and logic governing the social content of the spaces was based on qualitative methods and, in particular, conducting field observations and in-depth and semi-structured interviews with the stakeholders. commercial spaces in this study also included more spaces that were firstly allocated to land levels, secondly, with the exemptions and privileges of the region, and, thirdly, indicative spaces related to the realization of the goals of the Free Zone be. In this study, the content-oriented analysis method was used to analyze the information and interviews conducted. The sampling method used for this method was snowball sampling method and the sample size was determined using theoretical saturation method. 20 experts from free zones and 48 trade and business activists were selected and interviewed.



Results and Discussion

The investigations showed that Aras Free Zone has allocated vast spaces to small businesses to achieve their transcendental goals; but the performance of these spaces is associated with major failings such as managerial weakness, unhealthy economy, lack of outsourcing and unsustainable economy, and is far from the ideal model based on the goals and foundations of free zones. Generally, the domain of small business in the Free Aras area is important in several ways. First, the lack of production conditions due to the macroeconomic policies of the state and the existence of renting and speculation in this field in order to gain more profit on the one hand and the adoption of early policies and measures in line with the periodic revenues due to the weakness of the management of the Aras Free Zone, on the other hand, The capital has been largely driven into this sector, thus providing the basis for its false growth. Second, according to the claims of the officials and experts of the Aras Free Zone, the business of microeconomy has been thriving for the purpose of developing tourism tourism, with the aim of attracting tourists to the region and the economic prosperity of the region, which is quite a look inwardly and in line with the mainland. There are conflicting goals with the outsourcing of the free zone. Third, the prosperity of other areas of the Free Arar Free Zone relies heavily on the entry of goods and its supply in these commercial spaces, which in some way reproduce the relations of the dependent capitalist economy, such as the intensification of consumerism and the formation of an unhealthy economy. In total, the currency is withdrawn from the country.



Conclusion

The results of this paper show that the function and spaces of trade and commerce in Aras Free Zone are associated with major failings such as management weakness, unhealthy economy, non-extroversion and unstable economy. The formation of an unhealthy economic environment, such as the sale and purchase of licenses, smuggling of goods and etc in this area, with the subsequent changes in the management and personal effects, as well as the intensification of the bureaucratic system for more revenue, all indicate the use the toolkit of the spaces in this area and instability of the region's economy is due to its spatial functions. From this perspective and with the current process, rather than a free space to leave the country dependent on the economy, it is the opposite of learning and practicing the characteristics of such an economy.








Keywords

Subjects

1- Athari, K. (2006)."Regulation Theory; Linkage of Component and whole", Journal of All-round transformation political economy, Vol. 1, No. 2, pp. 149- 157 (in persian).
2- Athari, K. (2010), "Urban Economics and City Economy in Iran," Economy of the City Journal (Special Section), Vol. 2, No. 7, pp. 56- 65 (in persian).
3- Imani Shamloo, J., Rafieian, M. (2016), "Power and redefinition of Urban Planning Theory (Emphasizing the Perspective of Political Economy of Space)", Strategic Quarterly, Vol. 25, No. 80, pp. 319-287 (in persian).
4- Imani Shamloo, J., Rafieian, M., Dadashpour, H. (2015); "Urban Speculative and Space Divergence; Analysis of Spatial Transformations of Tehran Metropolis Based on Oil Economy", Quarterly Journal of Geopolitics,Vol. 12, pp. 135- 104 (in persian).
5- Bahmani, A. (2012), "Investigating the Effect of Free Areas on the Global Economy (Case Study of Free Areas of Iran)", Master's thesis, International Campus of Guilan University (in persian).
6- Plohmanter, J. (1992), "Explanation and critique of Hegel's social and political philosophy", translated by Hossein Basherieh, Second Edition, Tehran: Ney Pub (in persian).
7- Poor Ahmad, A. (2007), "The Territory and Philosophy of Geography", Tehran, Tehran University Press and Publishing Institute, Second Edition (in persian).
8- Taghizadeh, Kh. (2010), "The Function of Free Industrial-Commercial Zones in the First Four-Years of the Fourth Development Plan (Office of Research and Policy on Monetary and Commerce), Economics Magazine, Economic Issues and Economic Policy Months, Nos 9 and 10, pp. 132- 123 (in persian).
9- Hatami Nejad, H., Naseh, A. (2007), "Political Economy and Urban Space," Political Economic Information, No. 238, pp. 205-196 (in persian).
10- Rafiean, M., Hosseinpour, SA. (2012), "Theory, City, Space, Urban Management", Tahan Pub, First Edition (in persian).
11- Renani, M. (2005), "Market or Innovative; Examining Institutional Barriers to the Effectiveness of the Market Economy System in the Iranian Economy", Publication of Iran's Management and Planning Organization, Second Edition (in persian).
12- Sunders, P. (2012), "Social Theory and Urban Problems", translated by Mahmoud Sharipoor, Tehran: Tisa Pub (in persian).
13- Shokouee, H. (2005), "New Thoughts in Geography Philosophy", Volume II, Environmental Philosophy and Geography Schools, Githeshnasi Pub, Second Edition, Winter (in persian).
14- Faraji Dana, A. (2005), "Reforming the Development Economics in the Light of Regulatory Theory: Towards a Multidisciplinary Approach", Journal of Economic Research, No. 72, pp. 92-55 (in persian).
15- Fakouhi, N. (2004), "Urban Anthropology", Tehran, Ney Pub, Second Edition (in persian).
16- Kazemian, Gh. (2004), "Explanation of Relationship Between Governance Structure and Urban Power with Space Organization; A Quest for Designing a Model (Sample of Tehran Metropolitan Area)", Ph.D. in Geography and Urban Planning, Tarbiat Modares University, Tehran (in persian).
17- Golabi, S. (1990), "Human Resource Development of Iran; Sociology of Iran Development", Tehran, Ferdows Pub, p. 14 (in persian).
18- Manouchehri, A. (2016), "Explaining the Tehran Metropolis's Spatial Crisis and its Decentralization Scenarios", Ph.D., Geography and Urban Planning, University of Tehran (in persian).
19- Aliyan, Mehdi; Razavian, Mohammad Taghi; Ismael Zadeh; Hasan; Technical; Venus; Faraji Rad, Khader (2018); "The Application of Game Theory in Analyzing Actors in the Area of Metropolitan Area Management", Quarterly Journal of Space Planning and Design, Volume 22, No. 4, pp. 85- 53, (in persian).
20- Rahimi, Hojatollah (2014), "Research approach in spatial practice: the balance between the scale of power relations, knowledge and decision making in strategic space planning", Quarterly Journal of Space Planning and Design, Volume 19, No. 1, pp. 78- 53, (in persian).
21- Meshkini, Abolfazl, Nourmohammadi, Mehdi, Roknaddin Eftekhari, Abdolreza; Rafeie, Mozaffar (2014), "Policy Pattern of Government Intervention in Urban Land Management in Iran (Case Study: Tehran City)", Quarterly Journal of Space Planning and Design, No. 1, Pages 210- 181.
22- Siegfried, J. Carsten (1991), Quantum Theory and Social Economics, Translated by Kamal Afarari, Journal of Political-Economic Information, Nos. 51 and 52, pp. 95-91.
23- Kouz, Ronald (2006), "The Institutional Structure of Production", translated by Mahmoud Kazemian, Journal of Full-scale Transformation Political Economy, Year 1, No. 2.
24- "Macmillan Dictionary of Modern Economics", Edited. By: David, W. Pearce, third edition, 1986.
25- Andrews Skinner, (2009). “The Shaping of Political Economy in The Englishment “Scottish Journal of Political Economey ,Vo1.37,May, P.157.
26- Clark, Barry Stewart (2010), Political Economy: A Comparative Approach, Translated by Abbas Hatami, Tehran, Kavir Publications.
27- Dickenson, P. (1992), “Society and Nature. Towards a green social theory”, London: Harvester Wheatsheaf.
28- Harvey, David (1978), Urbanization under Capitalism: a Framework for Analysis, International Journal of Urban and Regional Research, vol. 2, pp. 101-31.
29- Kong, Xiangtong (2013). Chinese Aided Special Economic Zones as a Means for North Korean Reform. The Ohio State University .
30- McLean, Lain (2002), The Concise Oxford Dictionary of Politics, Translated by Hamid Ahmadi, Mizan Publications.
31- Meng Guang-wen. (2005), “Evolutionary model of free economic zones”. Chinese Geographical Science, Volume 15, Issue 2, pp 103–112.
32- Perbish (1950), “The economic development of Latin- America & it,s principle Problems, N. Y. U. N.
33- Perbish, (1971), “Change & Development: Latin- America Great Task”, Report to Inter- American Develop. Bank.
34- Peter Groenewegen," Political Economy", in: The New Palgrave Dictionary of Economics,Vol.3,
35- Preobrazhenski, (1924), “The New Economic”, Oxford, Clarendon press.
36- Shah, Semil (2008). Special Economic Zones in South Asia: Comparative Analysis of Bangladesh, Sri Lanka, and India. mimeo, Harvard University.
37- Timashef, Nicholas S.(1967), Sociological Theory, Its Nature and Growth, NewYork: Rondom House, Third Edition.
38- Urry, J. (1985). Social relations, space and time. In D. Gregory & J. Urry (Eds.), Social relations and spatial structures (pp. 20–48). London: Macmillan
39- Yeung, Yue-man; Lee, Joanna; and Kee, Gordon (2009). China’s Special Economic Zones at 30 “Eurasian geography and economics”. (50) 2: 222-240.
The Journal of Spatial Planning and Geomatics
Volume 23, Issue 3
October 2019
Pages 99-124