Effects of free zones on employment: A case study on Antalya Free Zone

Free zone practices emerged in order for the countries to develop and facilitate commerce between one another by applying waivers or exemptions on their foreign trade and customs legislation. While the first free zones that resemble the today's practices in the world have a history of approximately 300 years, Turkeys adventure on free zone dates only back to around 30 years. Throughout the world, the reasons for the establishment of free zones may have various goals in terms of the development level of the countries and their socio-economic structures. In that, while developed countries gravitate towards these zones so as to develop commerce rather than industry, production, and employment, developing countries tend to utilize free zones in order to increase export, production, and employment. In Turkey, as a developing country, goals, such as increasing export, production, and employment, were identified in establishing the free zones. Accordingly, it is a matter of interest as to what extent these identified goals have been achieved in Turkey, where these free zones have been in operation for 30 years. Reviewing all the studies conducted in Turkey regarding free zones, it is impossible to encounter one that aims to reveal the effects of free zones on employment. In some studies on free zones, the issue of employment is briefly mentioned, and it is claimed that the effects on employment are positive under any condition. In this study, it is aimed to measure the effects of free zones on employment by providing comparative information on the financial and employment status of free zones that are in operation in Turkey. In the study, the effects of free zones on employment are examined by way of in-depth interview method with the managers of companies operating in the free zone within Antalya Free Zone sampling. Concluding the study, the revealed problems are defined, and suggestions are given in order for free zones to increase employment. Keywords: Free Zones, Employment, Foreign Trade, Import, Export.