REGIONAL ECONOMIC CONCEPT AND EVOLUTION OF FREE ECONOMIC ZONES IN REGIONAL ECONOMICS

Abstract

This article comprehensively analyzes the formation, institutional foundations and
evolutionary development stages of the concept of free economic zones (FEZ) in the regional
economy based on theoretical and empirical approaches. The study systematically covers the
transformation of FEZs from the initial export promotion model to the stage of complex industrial
and logistics zones and the concept of "smart zones" based on innovative technologies and digital
management mechanisms.
Based on international experience, including the practice of developed and developing
countries, and statistical data, the impact of FEZs on investment flows, the volume of foreign direct
investment, export diversification, employment levels and regional competitiveness is assessed.
The results of the study show that at the modern stage, the effectiveness of FEZs is determined not
only by fiscal incentives, but also by developed transport and logistics infrastructure, the quality
of institutional management, the introduction of digital platforms and the level of vertical and
horizontal integration with the national economy. The article scientifically substantiates FEZs as
a strategic instrument of regional economic growth, an important mechanism for accelerating
industrial modernization and innovative development.