The impact of free trade zone on logistics at Berbera, the case study of free trade zone in Berbera, Somaliland

Abstract Free trade zones (FTZ) have become widespread with the liberalization of international trade andinvestment. They are a key player in the deepening of the global value chain (GVC). This paper sets out to improve the how Berbera free trade zone works, challenges exist, how to increaseeconomy of the country and customer satisfaction of the free trade zone. We have built an original database of FTZs where we define them as processing zones benefiting from importtariff incentives. We show that FTZs raise trade only by easing the negative impact of protection. As importers of components and raw materials, they raise the rest of the world’s exports. This confirms the contribution ofFTZs to the GVC. This result is robust to a change in the model specification, Berbera free trade zone increase economic of the country and has an ability to serve different companies and could store different cargo Berbera free trade zone has good space and welfare environment, all infrastructures are effectiveand good