Explaining the role of Aras Free Trade Zone in the development of medium and small cities

Subject Areas : Regional Planning

javad Abedi Abash Ahmadlou ¹ (PhD student, Department of Geography, Central Tehran Branch, Islamic Azad University, Tehran, Iran)
abbas. arghan ² (Associate Professor, Department of Geography, Semnan Branch, Islamic Azad University, Semnan, Iran)
naser eghbali ³ (Associate Professor, Department of Geography , Central Associate Professor, Department of Geography and Urban Planning, Central Tehran Branch, Islamic Azad University, Tehran, Iran Branch, Islamic Azad University, Tehran, Iran)

Received: 2022-11-29 Accepted : 2023-05-02 Published : 2024-02-20

Keywords: development, Aras Free Zone, Keywords: free zone, small and medium cities, economic and social development,

Abstract :

Abstract Free zones are gateways to world markets by taking advantage of the potentials and opportunities of the domestic economy in international trade. If the goal of the country's development is to develop the areas outside the big cities so that it includes all the rural areas in addition to the cities, one of the most important efforts is to pay attention to the small towns and somehow determine and evaluate their role in the development of the region. is In this research, the role of Aras Free Trade Zone in the development of medium and small cities has been evaluated. The main purpose of the research is to investigate the role of the Aras Free Zone on the development of medium and small cities around. The collection of information was done in two ways: library and field. The statistical population studied are the residents of small and medium towns around the region. The reason for choosing this community is the impact of Aras Free Zone on the lives of these residents. 150 of these people were randomly selected; Also, Cochran's formula was used to estimate the sample size. Cronbach's alpha method was used to measure the reliability of the research. Factor analysis and Spearman's test were used for the analysis. According to the results obtained from the questionnaires and the analytical test, Aras Free Zone is an effective factor in the development of small and medium cities and has caused the economic and social development of these cities. Suggestions for further development of small and medium cities have been presented. Extended Abstract   Introduction Free zones serve as gateways to global markets, capitalizing on the potentials and opportunities of the domestic economy in international trade. If the country's development goal encompasses the expansion beyond major urban centers to encompass all rural areas as well, it is imperative to prioritize attention to small cities and delineate their role in regional development. Over the past few decades, one of the pivotal economic policies pursued by the country's decision-makers and policymakers has been the establishment and implementation of commercial-industrial free zones. This policy has been driven by various objectives, including enhancing the competitiveness of the national economy, gradual integration into the global economy, regional development, alleviating deprivation, attracting both foreign and domestic capital, creating new employment opportunities, acquiring advanced technology, and augmenting exports. Presently, metropolitan areas in developing countries are witnessing robust growth, absorbing the majority of the country's resources, services, and capital. Nonetheless, they grapple with a myriad of urban challenges such as housing shortages, escalating unemployment rates, marginalization, transportation issues, and deficiencies in other urban services, compounded by environmental degradation. Conversely, other areas within these countries, such as medium-sized cities, small towns, and rural regions, have lagged behind in development, experiencing stagnation and impediments to progress. Global experiences underscore the importance of addressing the problems of major cities and achieving spatial population distribution balance and regional development, with a strong emphasis on supporting small cities.The establishment of commercial-industrial free zones lags behind in many countries' measures and development plans for underdeveloped areas. Each new economic endeavor carries significant potential for the host region's development. Successful economic activities generate added value and profitability, serving as incentives to attract further investment, thereby increasing job opportunities for local residents. Hence, it is crucial to prioritize attention to small cities and assess their role in regional development. This research evaluates the role of the Aras Free Trade Zone in fostering the development of medium and small cities. The primary objective is to examine the impact of the Aras Free Zone on the development of the surrounding medium and small cities, namely the central part, Jolfa city, Hadi Shahr, and Siehroud part.   Methodology The research methodology follows a descriptive-analytical approach with practical objectives. Data collection involves documentary methods and field studies to explore the role of the Aras Free Trade Zone in the development of medium and small cities, utilizing interviews and questionnaires. Data analysis is based on existing data and survey results from residents of small and medium cities surrounding the region, chosen due to the impact of the Aras Free Zone on their lives. The statistical population consists of residents of small and medium cities in the vicinity, with 150 individuals randomly selected using Cochran's formula to estimate the sample size. Cronbach's alpha coefficient is utilized to ensure the reliability of the research, particularly useful for measuring the internal consistency of Likert-type scales. A pre-test with 10% of the sample population was conducted to validate the questionnaire, and Cronbach's alpha coefficient was calculated using SPSS software, confirming the questionnaire's validity with a coefficient exceeding 0.80. Data analysis employs the factor analysis model and Spearman correlation coefficient in SPSS software.   Results and Discussion The establishment of successful free zones has the potential to attract capital from cities of any size and dimension, leading to optimal management practices, mitigating cultural, social, and service-related issues, fostering peace and comfort, implementing justice, and boosting morale through participation. However, small and medium cities encounter their own set of challenges. Without appropriate plans and strategies to address urban management issues at national, regional, and local levels, these problems persist. Neglecting the development of small cities and lower-tier urban areas while focusing solely on high-level plans and investments exacerbates disparities, leading to imbalanced population distribution nationally and regionally. This imbalance poses a significant challenge for governments, as achieving balanced spatial development is crucial for national economic and social progress. Urban centers, characterized by their strength and prosperity, tend to repel labor and population, attracting more resources and opportunities, while peripheral areas, including small cities and rural regions, often struggle with poverty and underdevelopment. Addressing these disparities is essential for fostering sustainable and inclusive growth.   Conclusion The results reveal that out of the 34 indices utilized in this study, 12 factors were identified, all possessing high eigenvalues, collectively explaining 68.7% of the variance. The first factor, with an eigenvalue of 3.911, elucidates 11.5% of the variance and exerts the most significant influence among the 12 factors, primarily within the economic domain. The second factor, comprising four indices, has an eigenvalue of 3.172, explaining 9.3% of the variance, ranking second. The third factor encompasses three loaded indices with an eigenvalue of 2.645, accounting for 7.8% of the variance. The fourth factor, composed of four indices, has an eigenvalue of 2.272 and explains 6.6% of the variance. Factors five through twelve have eigenvalues of 1.118, 0.971, 0.449, 0.223, 0.873, 0.394, 0.240, and 0.141, respectively, indicating lower variances. Based on the results, various components such as employment generation, income increase, economic development of small and medium regions, social development of small and medium regions, rapid provision of infrastructure, increase in domestic production and handicrafts, improvement in green spaces and tourist destinations, increased income from transport services, improved public services in surrounding areas, and rapid service delivery to small and medium regions around the Aras Free Trade Zone were identified. The findings demonstrate an increased dependency of small and surrounding areas on the Aras Free Zone.Furthermore, the correlation coefficient test employing Spearman's correlation coefficient between the development of the Aras Free Zone and the development of small and medium cities revealed a significant and positive relationship, indicating that an increase in one leads to a corresponding increase in the other. Therefore, the development of the Aras Free Zone has significantly contributed to the economic and social growth of small and medium cities, including the central district, Jolfa city, Hadi Shahr, and Siehroud part. Additionally, it has led to reduced migration from these cities to other areas, attributable to employment opportunities and economic growth and development in small and medium cities.

References:

References

1. Ali Akbari, I., Talshi, M., & Faraji Darabkhani, M. (2016). Analysis of the role and position of small cities in regional balance and development (case study: Greater West of Zagros region). Economics and Urban Management Quarterly, 5(1), 49-65. [In Persian].


2. Asadzadeh, A., & Abdollahzadeh Nobarian. (2013). Investigating the role of the Aras commercial-industrial free zone in creating commercial convergence with CIS countries. [In Persian].


3. Dehmarde Qala Nou, N., Ali Ahmadi, N., & Qadri, A. A. (2018). Evaluation and prioritization of the country's free zones and its impact on the economic development of these zones. Quarterly Journal of Strategic and Macro Policies.


4. Deputy of Economic Researches. (2015). Meta-analysis of free zone studies.


5. Devadas, V., & Vaibhav, G. (2011). Planning for Special Economic Zone: A Regional Perspective. Institute of Town Planners India Journal, 8(2), 53-58.


6. Esfandiari, A. A., Moqds Hassanzadeh, S., & Delavari, M. (2007). Evaluation of the performance of Iran's free trade zones and its effect on the economic development of these zones. Economic Research Paper.


7. Ghalibaf, M. B., & Karmi, M. (2013). Regional development in the northwestern border areas of Iran, a case study: Aras Industrial Free Trade Zone. 15th Period, 3. [In Persian].


8. Ghasemi, M. (2013). Analysis of the position of small towns in reducing the migration of rural people to big cities (case study: Mashhad city). Fourth Urban Planning and Management Conference.


9. Hazrati Soumeh, Z., Sa'i Shtarbati, R. E., & Karampour, R. (2019). Free Zones, Sociological Analytical Development Stimulus on the Functional Dimensions of Aras Free Zone. Economic Sociology and Development Two Quarterly, 9(1), 115-140.


10. Kamanda, U. (2007). Concept of urban centers and small towns in Latin America: Brazil.


11. Kwiatek-Sołtys, A. (2011). Small towns in Poland-barriers and factors of growth. Procedia-Social and Behavioral Sciences, 19, 363-370.


12. Latifi, G., & Qaimpour, M. A. (2015). The effect of special economic zones on the welfare and social development of urban and rural areas (case study: Salafchagan Special Economic Zone). Journal of Welfare and Social Development Planning, 7(27). [In Persian].


13. Papli Yazdi, M. H., & Sanajerdi, H. (2006). Theories of the city and its surroundings. Samt Publications, Tehran.


14. Pederson, P. O. (1995). The Small Town Agents: Their Policies and Strategies. Regional Development Dialogue, 16(2), 76-84.


15. Qanbarpour, K., Mahkoui, H., Amiri, A., & Zain al-Abidin Amuqin, Y. (1400). Analysis of the impact of free zones on economic development in Iran (case study: Aras Free Zone). Geography and Environmental Studies Quarterly, 10(39).


16. Rokanuddin Eftekhari, A. R., & Vojdani Tehrani, H. V. E. A. (1388). Evaluation and prioritization of free trade zones in Iran using the MADM method. Tehran, Institute of Business Studies and Research. [In Persian].


17. Sayafzadeh, A., Behnam, M., & Behnam, S. (2013). Effect of commercial-industrial liberalization of Aras and influencing factors in the economic growth of the region. First National Conference on Geography, Urban Planning and Sustainable Development. [In Persian].


18. Shakuri, A., & Omidi, H. (2017). Investigating the effect of the creation of Aras Free Zone on the social welfare of the local community from the perspective of residents. Summer and Spring, 11(1), 49-74. [In Persian].


19. Wang, J. (2013). The economic impact of Special Economic Zones: Evidence from Chinese municipalities. Journal of Development Economics, 101, 133-147.


20. Ziyari, K., & Taghi Aghdam, J. (2007). The performance of Khoy middle town in the spatial development of West Azarbaijan Province. Geographical Researches, 63. [In Persian].

Ziyari, K., Rezaei, M., & Masoodi Rad, M. (2013). Analysis and evaluation of management problems of small and medium cities (case example: Ilam city). Farhang Ilam Journal, 15(44 and 45). [In Persian].