Spatial Analysis of the Economic Performance of Free Zones in Iran

Document Type : Research Paper

Author

Associate Professor of Political Geography, Faculty of Humanities, Maragheh University, Maragheh, Iran

Abstract

This research, employing a descriptive–analytical method, investigates and analyzes the economic performance of Iran’s free trade–industrial zones during 2013–2020. The objective is to evaluate and spatially analyze their performance in key domains such as foreign trade, investment, employment generation, foreign transit, tourism, and borderland development–poverty alleviation, with particular emphasis on structural disparities arising from geographical location as well as political, economic, and geopolitical factors. Through a holistic perspective, this spatial analysis identifies inequalities in the distribution of resources, investment, and economic opportunities across the zones. Methodologically, the integration of quantitative and qualitative data, including geographical positional analysis, provides a comprehensive interpretation of their performance. The findings reveal significant spatial disparities in performance, directly associated with access to international markets, infrastructure quality, and political–economic constraints. Northern zones, benefiting from access to Eurasian markets and relatively low-risk land and port routes, lead in foreign trade, foreign investment, and foreign transit. In contrast, southern zones, while dominant in imports, domestic investment, and infrastructural expenditures, face trade deficits and weaknesses in transit performance. The ranking of zones in terms of economic performance places Arvand, Anzali, Aras, Kish, Maku, Qeshm, and Chabahar respectively from first to seventh. To improve the overall efficiency of free trade–industrial zones, spatial policymaking should focus on strengthening port and transit infrastructures, expanding international linkages for deeper integration into the global economy, and diversifying economic activities. These measures can foster the transformation of free zones from intermediary trade hubs into dynamic, production-based and export-oriented centers.

Keywords

Main Subjects

References

Afrouz, A. (2011). A Study of the Effects of Foreign Trade Liberalization on Employment in Economic Sectors. Work and Society Monthly, 20(136), 41–54.
https://ensani.ir/file/download/article/20121212093547-9625-106.pdf
Akar, S. (2008). Serbest Bölgeler, Türk Dış Ticaret Vakfı. (in Turkish).
Akinci, G.  & Crittle,         J. (2008). Special economic zone: performance, lessons learned, and implication for zone development, Foreign Investment Advisory Service, FIAS, Washington, D.C.
https://documents1.worldbank.org/curated/en/343901468330977533/pdf/458690WP0Box331s0April200801PUBLIC1.pdf
Aksoy, F. (2010). The Advantages of Free Zone, Effects on Country’s Economy: Kayseri City Free Zone Implementation, A Thesis Submited to the Graduate School of Social Science for the Degree of Master of Art in Economy, Erciyes University.
https://tez.yok.gov.tr/UlusalTezMerkezi/TezGoster?key=veR1mHu9yoWjwcVUjCEoPJsYa3KIIJRG0l7Mc5zYLB7jcNmLICfj7nxGLvUTFPrf
Alansary, O. S. A., & Al-Ansari, T. (2023). Defining ‘free zones’: A systematic review of literature. Heliyon, 9(4).
https://www.cell.com/heliyon/pdf/S2405-8440(23)02551-3.pdf
Can, G. (2012). Free Zones: the Aegean Free Zone Experience, A Thesis Submited to the Graduate School of Social Science, Izmir University of economics.
https://gcris.ieu.edu.tr/bitstream/20.500.14365/540/1/540.pdf
Carballo, J., Schaur, G., Graziano, A., & Volpe Martincus, C. (2016). Transit trade (No. IDB-WP-704). IDB Working Paper Series.
https://www.econstor.eu/bitstream/10419/146485/1/IDB-WP-704.pdf
Davies, R. B., & Mazhikeyev, A. (2019). The impact of special economic zones on exporting behavior. Review of Economic Analysis, 11(1), 145-174.
https://openjournals.uwaterloo.ca/index.php/rofea/article/download/1520/1939
Demırelışçı, B. (2018). Free Economıc Zones’ Impact on Regıonal Economıc 2018 Development: Comparatıve Analysıs of FEZ’s in Baltıc States. Master’s thesis,
https://epublications.vu.lt/object/elaba:29007895/29007895.pdf
Free Zones and Special Economic Zones News Agency. (2018). Detailed Report: Iran's Free Zones; Requirements, Performance, Challenges, and Future Strategies.
https://media.freena.ir/uploads/org/153544477411105300.pdf
İnan, D. (2007). Türkiyede Serbest Bölgelerde İhracata Yönelik Üretimin Rekabet Avantajları, A Thesis Submited to the Graduate School of Social Science for the Degree of Master of Art in Economy, Marmara University. (in Turkish).
https://tez.yok.gov.tr/UlusalTezMerkezi/TezGoster?key=wBmNpkQC9Nhi90NLW7E7-df7QPzOJUdtPiCBfWF1cmiKUHa-3atL8ZJJyuUJF-zn
Iran Free Zones and Special Economic Zones Portal. (2025). Free Trade and Industrial Zones.
https://freezones.ir/fa/freezones
Mogielnicki, R. (2021). A political economy of free zones in Gulf Arab states. Springer International Publishing.
Mohammadifard, M. H. (2023). A Review of the Experience of Free and Special Economic Zones Worldwide (2), Turkey (18971). Reports. 31(3). 6-29.
https://report.mrc.ir/article_9502_b25145dbe74030ce9a4172926e36b935.pdf
Mohammadifard, M. H., & Abbaszadeh Jelqan, M. (2023). A Review of the Experience of Free and Special Economic Zones Worldwide (1): United Arab Emirates (19106). Reports. 31(4). 1-38.
https://report.mrc.ir/article_9522_7e1acdb18bfc738c26141573fda1dcf9.pdf
Mohammadifard, M. H., & Panahi, S. (2021). Analysis and Evaluation of the Economic Performance of Iran's Free Trade-Industrial Zones. Islamic Parliament Research Center, Economic Deputy (Commerce Group), 17492.
https://report.mrc.ir/article_8542_b51ed302c92ecafd2df5bbb13e39cc32.pdf
Mohammadifard, M. H., & Panahi, S. (2022). Analysis and Evaluation of the Performance of Iran's Special Economic Zones. Islamic Parliament Research Center, Economic Deputy (Commerce Group), 18564.
https://report.mrc.ir/article_959_70978da492a33a19456ea53b5277a978.pdf
Myles, D. (2023). A world ripe for free zones. FDI Intelligence.
https://www.fdiintelligence.com/content/f666ad57-8a5c-5c4f-933d-ee1d8d87e636
Özdemir, A. F. (2007). Serbest Bölge Rejiminde Dış Ticaret İşlemleri ve Muhasebe Uyguları, A Thesis Submited to the Graduate School of Social Science, Gazi University. (in Turkish).
https://tez.yok.gov.tr/UlusalTezMerkezi/TezGoster?key=ePX_SaJ0b35Gq45swKG3lL9DPd_EacXKgw1h5kxH-KG6m54R0b_0F5SQ8Qo1_7Nm
Öztaşkın, A. (2020). Serbest Bölgelerde Her Şey Serbest Midir?, (in Turkish).
https://ugm.com.tr/upload/files/serbest-bolgelerde-her-sey-serbest-midir.pdf
Öztürk, L. (2013). “Serbest Bölgelerin Geleceği: Türkiye Açısından Bir Değerlendirme”. International Journal of Management Economics and Business. 9(19). 75-86. (in Turkish). 
https://doi.org/10.11122/ijmeb.2013.9.19.77
Toprak, M. (2019). Bölgesel Gelişme Dinamikleri Ekseninde Serbest Bölgelerin Dış Ticaret Etkileri: Ege Serbest Bölgesi (ESBAŞ) Örneği, A Thesis Submited to the Graduate School of Social Science, Dokuz Eylül University, İzmir.
https://avesis.deu.edu.tr/dosya?id=f2980a94-1916-4521-969f-633c07685da9
UNCTAD (2019). World Investment Report 2019: Free Economic Zones.
https://unctad.org/system/files/official-document/wir2019_en.pdf
UNCTAD. (2022). New global alliance of special economic zones to boost development.
https://unctad.org/news/new-global-alliance-special-economic-zones-boost-development
Valigholizadeh, A. (2025). Futures Studies of the Geo-Economic Outlook of the Aras Free Trade-Industrial Zone. Journal of Geography and Regional Futures Studies, 3(1), 91-112.
https://doi.org/10.30466/grfs.2025.56003.1090
 
Geography and Development
Volume 24, Issue 84 - Serial Number 84
September 2026
Pages 141-174

Files

History

  • Receive Date: 05 October 2025
  • Revise Date: 21 October 2025
  • Accept Date: 26 October 2025

Share

How to cite

Statistics