FREE TRADE ZONES AS CATALYSTS FOR INTERNATIONAL TRADE: A CASE STUDY OF THE CALABAR FREE TRADE ZONE
Keywords:
Calabar Free Trade Zone, Trade Facilitation, Economic DiversificationAbstract
This study examines Free Trade Zones (FTZ) as trade enablers, focusing on the Calabar Free Trade Zone (CFTZ) in Nigeria. The objectives are to appraise the role of the CFTZ in supporting local and national economic development, identify the challenges limiting its contribution, and compare CFTZ with other FTZs in Nigeria. Comparative performance metrics include employment creation, attraction of investment, export growth, policy and regulatory constraints. The study combines qualitative studies of key policy documents, reports, and scholarly articles with quantitative data on key economic performance indicators, such as employment, Foreign Direct Investment (FDI), and export growth measures, to assess the CFTZ's impact. The data show positive indices on most counts. Infrastructure, bureaucratic errors, and policy inconsistencies limit CFTZ’s potential, from our findings. A comparative analysis of CFTZ's with other Nigerian FTZs shows that its lack of sectoral emphasis as a weakness. The recommendations called for focused infrastructure development, policy reform, and industry-specific approaches. The main takeaway for other FTZs is the importance of policy stability in zone design and implementation. Addressing these difficulties would ensure that the FTZs become true enablers of trade to enhance Nigeria's economic diversification drive.
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