The Fiscal and Economic Impact of Qualifying Industrial Zones : The Case of Jordan

This dissertation discusses the fiscal and economic effects of Qualifying Industrial Zones (QIZs) on the Jordanian economy. Unlike other studies this analysis estimates the costs and benefits following the introduction of QIZs in Jordania. In order to clarify the overall effect of QIZs on the host country, fiscal as well as economic problems are investigated. The introduction of QIZs effected employment and poverty development most. QIZs turned out to be ineffective at connecting with local economy. Tax incentives were one of the most important effects of QIZs on local economy. However, these influence hardly any investors and are therefore a waste of resources. On the other hand other factors such as economic and political stability, the export quota rate as well as the opportunity to export customs-free to the US-market play a much more important role. Another achievement of this study constitutes the deviation of political options. The proposed alterations as a whole are going to provide for a beneficial investment climate in Jordania