J. Basic. Appl. Sci. Res., 2(11)11196-11201, 2012 ISSN 2090-4304 Journal of Basic and Applied © 2012, TextRoad Publication Scientific Research www.textroad.com The Role of Free Trade Zones in Economic Development (Case Study: Iran's Aras Free Trade Zone ) Mohammad Balazadeh Abriz Ph.D. Student in Economics, University of Khazar, Baku, Republic of Azerbaijan. ABSTRACT Establishment of free zones in the world has a history of several decades. In 1991 the first steps for the establishment of 'free trade zones - Industrial "were taken in various discussions about it in the press, radio and television, the parliament, the economic and social carried out in different circles and different views have been presented, but the reality It is still, after 18 Years, except for the few "free zone" so that it should not clear exactly. Now that the rules' free trade zones - industrial "approved by the government, the parliament and the Expediency Council received adequate information from the areas of the undeniable success in attracting investment and technology, creating employment, reducing imports, increase exports, changing the social fabric of southern and central areas, positive changes in the internal and external migration, and tourism will be made available to those interested. Another choice is recommended as the import substitution policies. Given the importance of Economic development in countries the main objective of this study was to investigate the role of Aras free trade zone in economic development of Iran. KEYWORDS: Aras, Free Trade Zone, Economic development, Iran. 1. INTRODUCTION Zone is not easily defined. In recognition of this, some common terms are given in the areas of: Zone 1, 2 Commercial Zone, Industrial 3 Zone 4 Zone Commercial - Industrial Export Processing Zone 5, and 6 special economic zone; 7 foreign trade zone, free zone exports 8, 9 Sadratsaz zone, Zone 10 of the Law Customs, 11 from the free zone; 12 regional development funding[1]. Here are two definitions of the Kyoto Protocol and the World Bank. Common Customs) provide. Facilities for foreign investors and facilitate the settlement of this region is usually associated with other incentives. And modern technology absorption, foreign exchange earning opportunities it provides. Zones are areas that, according to its natural characteristics (such as being in a commercial highways, areas of dense economic association), with potential capabilities are important. Mainland official bodies involved in some of these areas (mainly customs and economic institutions) to be minimized in order to attract investment, including investment banking, commercial, or industrial tourism brings to the maximum possible [2]. The term or concept of free trade and free trade zone concept is old, but it only talks about the new form in the last few decades has been dramatic. The first free trade areas, the basic concept that started in ancient times with a large trade was made. For example, an "Delves" pointed, small island states are among the islands Skalds Athens between 315 and 166 BC, founded the first commercial Office centers. In the middle centuries in Europe for business people and cities were given freedoms Zones have been established around the world in several steps [3]: The first phase of slow growth, the number of free zones in the world and more in Europe and Latin America in the early 1970's, growth in the trading system needs to remove restrictive regulations and customs were the main motivation for creating this area. During this period a number of free zones were established shortly after World War I or II, and some, like the port of Hamburg, are the last century[4]. The second phase of moderate growth, which includes the late 70's and early 80's. The countries of Southeast Asia and some African zones were established. The first order expansion of world trade and Development zones with relatively more rapidly in this period. The third phase of rapid growth in the development and course of thought and guidelines of the World Bank and the International Monetary Fund and the vast wave of economic thinking "neoliberal" which was followed by a world in motion. At this stage most of the 80s and early 90s, belongs to the second stage of the collapse of the USSR has been established. This process accelerated after the collapse of the free zones in Russia and other former Soviet republics, as well as the increasing influence Fourth, the relative displacement and pause, which lasts from early 90s to the present. At this stage, a number of countries like Korea and Brazil are desperate or open areas, and build gradually kill them or to draw the conclusion that these regions have *Corresponding Author: Mohammad Balazadeh Abriz, Ph.D. Student in Economics, University of Khazar, Baku, Republic of Azerbaijan. 11196 Abriz, 2012 reached saturation. In this way, one cannot say that the speed of the previous stage would seriously reduce the still large number of countries without historical facts, findings, issues and opportunities within their real date of construction zones are. In the more than 2/4 million people were working in these areas. The distribution of employment in different regions and 168 countries. Thousand people have jobs. Degree of success in the world of employment created in this way is different. Half of the total employment in the three countries' zones in the world, Mexico, China and Singapore deals and the Dominican Republic, Hong Kong, Malaysia, Switzerland, Brazil, Taiwan and Macau and Indonesia together contribute 30% of total employment in the region Mydadhand account. The rest of the countries in this area have been successful. Employment rate in the region at this year's Jebel Ali free zone of about 12 thousand people in total about 10 thousand people. However, the small population countries such as Mauritius, Macau and Singapore zones between 35 and 90 percent of industrial employment in this country and in other countries such as Malaysia are formed, the Dominican Republic, Tunisia, Sri Lanka and Hong Kong regions share free industrial employment in these countries between 5/9 to 23 percent in South Korea and Taiwan, the ratio is about 5%. Performance of different countries in the field of export of goods. Successful in small countries, export free zones and industrial exports in total exports of the very important form. For example, two-thirds of the country's total exports and 96 percent of Morris's industrial exports from free zones are issued. It should be noted that the absolute value of exports is only about 772 million dollars. The Dominican Republic also exports 692 million U.S. dollars, 44% of total exports and 51 percent of the country's industrial exports. Successful countries and large, the absolute numbers are very significant areas Mlahzhtr exports, although the share of industrial exports in total exports is limited. Mexico's export processing zones, with 21billion dollars in exports, 35 percent of total exports and 53 percent of the country's industrial exports, and China's exports have accounted for 27/4 billion dollars in 1989, these regions share equivalent to 12% of industrial exports The country had formed. Countries of the region in Taiwan, Malaysia and the Philippines in terms of the absolute value of exports or the share of exports in total exports of industrial zones in the country are extremely significant. The UAE also exports 2/1 billion dollar industrial zone of Jebel Ali has had a large share in exports. However, the industrial export zones in just 76 million, which was less than 1%, share of the country's industrial Exports accounts [5]. However, the major part of the export processing zones will provide export using imported institutions, the main criterion for success in these areas, but not in exports, net exports (exports minus imports), and these areas should be searched. The figures indicate that net exports at best only half of the region's exports. Of course there are areas that have negative net exports and the credibility of its foreign exchange income country. In this regard, three types of zones can be seen. The first category of countries whose net exports comprise a high percentage of total exports. South Korea is the best example of this category in which the share of net exports in the exporting region of the 34% in early 1970 to over 50 percent in the mid-1970s became. In this group of countries such as India, Taiwan, Mauritius, the Philippines, Indonesia and the Dominican Republic are located. In these countries, the relationship between the backward zones with strong local economy, and there is considerable Freedom in the use of local inputs. The second category of countries with very low net export figure accounts for about 5 percent of the region's exports and hence validated the relationship between internal zones of the economy is not Wide enough. The third category of countries with net exports is negative. Negative net exports could be two reasons. The first phase of implementation, the import of raw materials and machinery is very high and hence net exports are negative, this will be a temporary phenomenon. Second, instead of the Export Processing Zone, the District is responsible for processing imports. It is the duty of the export of goods, but imports of semi-manufactured goods and processed for sale in the domestic market is. Brazil Manaus Free Zone is best – known in this field. Jebel Ali Free Zone, particularly in relation to Iran's free zones should be placed in the third group. In 1995, net exports and net exports in Jebel Ali Free Zone, about the equivalent of nearly 400 million dollars 351 million dollars. But this year, we export millions of dollars in Jebel Ali 1200 5/2 million Dollars we export zones [5].