The impact of the activities of the Beirut port Free Zone on balance of trade, marine traffic and unemployment in Lebanon (1975-1984). (c1987)

Abstract

Though the Free Zone of Beirut was created almost half a century ago, it only began its real function a short while after the end of the Second World War when international trade resumed once again its normal movement. The Free Zone definitely helped and influenced the economy in giving many advantages to its different sectors. Transit to the neighbouring Arab countries, for instance, was much encouraged. Trade increased and the Free Zone became and international market, a warehousing and distribution center. Manufacturers took advantage of cheaper raw materials available at the Free Zone, set up installations to compete with foreign produced goods imported to the Arab world and to Africa. Businessmen have been much encouraged to increase their imports, due to the re-exportation facilities in case the Lebanese market failed to absorb the whole imported lot. Others, who did not have the required capital to import, were given the opportunity to choose any quantity, however small, from a wide line of products in the Free Zone. Transport, with the availability of return cargo, became cheaper amd more regular, this to the profit of the whole economy. At least, because of the intense traffic created by the Free Zone until the year 1975, more income is accuring to the port company as well as to the employment sector of the economy. In general, all of the above mentioned factors added up to a net increase in the national economy of the country before the year 1975, while from 1975 and on the same factors mentioned, become a burden on the net worth of the country's national economy and specially with respect to traffic, unemployment balance of trade, industry at the Free Zone.