Instituto de Estudios Políticos y Derecho Público "Dr. Humberto J. La Roche"
de la Facultad de Ciencias Jurídicas y Políticas de la Universidad del Zulia
Maracaibo, Venezuela
Publicación cientíca en formato digital
ISSN-Versión Impresa 0798-1406 / ISSN-Versión on line 2542-3185
Depósito legal pp 197402ZU34
ppi 201502ZU4645
Vol.40 N° 74
2022
Recibido el 07/07/22 Aceptado el 12/09/22
ISSN 0798- 1406 ~ De pó si to le gal pp 198502ZU132
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Vol. 40, Nº 74 (2022), 440-455
IEPDP-Facultad de Ciencias Jurídicas y Políticas - LUZ
Institutional support for
the development of eco-industrial
parks in the conditions of the circular
economy formation taking into
account world experience
DOI: https://doi.org/10.46398/cuestpol.4074.24
Anna Pohrebniak *
Nataliia Shevchuk **
Svitlana Pereverzeva ***
Kateryna Redko ****
Andrii Tymoshenko *****
Abstract
The article aims to substantiate the principles of institutional
support for the development of eco-industrial parks in the
conditions of formation of circular economy taking into account,
the world experience. The methodological basis of the study is a systematic
approach. It is based on the fact that the institutional support for the
development of eco-industrial parks orients the actions of the authorities
at dierent levels to establish certain norms, rules, restrictions, the order
of their establishment and fulllment in terms of achieving the goals of
sustainable development, with interaction with the subjects of territorial
communities. It is concluded that institutional support, should provide
eective assistance in the development of public policies that underpin the
eco-industrial parks, ensuring compliance with the rights and freedoms
of business entities. In addition, the basis of institutional support for park
* PhD in Economics, Associate Professor of the Department of Economics and Entrepreneurship,
National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”, 37, Prosp.
Peremohy, Kyiv, 03056, Ukraine. ORCID ID: https://orcid.org/0000-0003-2421-476X
** PhD in Economics, Associate Professor, Associate Professor of the Department of Economics and
Entrepreneurship, National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute”,
37, Prosp. Peremohy, Kyiv, 03056, Ukraine. ORCID ID: https://orcid.org/0000-0003-0355-9793
*** PhD in Economics, Associate Professor, General Secretary of the International Chamber of Commerce,
19B, Reytarska Str., Kyiv, 02000, Ukraine. ORCID ID: https://orcid.org/0000-0001-9992-0314
**** PhD in Economics, Senior Researcher, State Institution «G. M. Dobrov Institute for Scientic and
Technological Potential and Science History Studies NASU», Center for Innovations and Technological
Development, 13, Rybalska, Kyiv, 01011, Ukraine. ORCID ID: https://orcid.org/0000-0003-2609-
3471
***** Doctor of Economic Sciences, Associate Professor, Associate Professor of the Department of Finance,
Accounting and Taxation, Private Higher Education Institution «European University», 16 C,
Academician Vernadskyi Boulevard, Kyiv, 03115, Ukraine. ORCID ID: https://orcid.org/0000-0002-
6381-404X
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CUESTIONES POLÍTICAS
Vol. 40 Nº 74 (2022): 440-455
development is based on a systemic approach, which is proposed in the
form of a recurrent functional relationship. Measures aimed at ensuring
institutional support for these parks are highlighted.
Keywords: pre-industrial park; institutional support; industrial park;
sustainable development; circular economy.
Apoyo institucional para el desarrollo de parques
ecoindustriales en las condiciones de formación de una
economía circular teniendo en cuenta la experiencia
mundial
Resumen
El artículo tiene por objeto fundamentar los principios de apoyo
institucional para el desarrollo de parques eco-industriales en las
condiciones de formación de la economía circular teniendo en cuenta,
la experiencia mundial. La base metodológica del estudio es un enfoque
sistemático. Se fundamenta que el apoyo institucional para el desarrollo
de parques eco-industriales orienta el accionar de las autoridades en
los diferentes niveles a establecer ciertas normas, reglas, restricciones,
el orden de su establecimiento y cumplimiento en cuanto al logro de las
metas del desarrollo sostenible, con interacción con los sujetos de las
comunidades territoriales. Se concluye que el apoyo institucional, debe
proporcionar una asistencia ecaz en el desarrollo de políticas públicas que
apuntalen los parques eco-industriales, asegurando el cumplimiento de
los derechos y libertades de las entidades comerciales. Además, la base del
apoyo institucional para el desarrollo de parques se fundamenta mediante
un enfoque sistémico, que se propone en forma de relación funcional
recurrente. Se destacan las medidas destinadas a garantizar el apoyo
institucional de estos parques.
Palabras clave: parque preindustrial; apoyo institucional; parque
industrial; desarrollo sostenible; economía circular.
Introduction
Modern globalization challenges determine the formulation of the
question regarding the further directions of development of the economies
of the countries of the world, taking into account the principles of the
circular economy. The principles of the circular economy formation
442
Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
actualize the issue of industrial development on an innovative basis with
the involvement of “green” technologies and a careful attitude to resources
using creative approaches to management, the use of a sustainable
development approach, etc.
The global concept of industrial development consists in ensuring
competitive industrial production that would satisfy demand, taking into
account the environmental friendliness of production and the principles of
the circular economy.
This paradigm of industrial development corresponds to the direction
of development of eco-industrial parks, which at the same time provide
an opportunity for industrial enterprises to develop, attract investment
resources, introduce innovations, ensure environmental sustainability
of production, maximize the use of resources, implement waste-free
production and increase the competitiveness of products. At the same time,
the activation of the development of eco-industrial parks actualizes the
issue of their institutional support and regulatory support for functioning
and development in the conditions of the circular economy formation.
The topic of institutional support for the development of eco-industrial
parks is becoming especially relevant for Ukraine, which will contribute to its
post-war renewal. The development of eco-industrial parks in Ukraine will
provide an opportunity to revitalize industrial enterprises, a large number
of which have already suered signicant losses today, to increase resource
eciency, zero waste and environmental friendliness of production.
The purpose of the presented research is to justify the principles of
institutional support for the development of eco-industrial parks in the
conditions of the circular economy formation taking into account world
experience. To achieve it, the following tasks were set and solved for the
authors:
• The relevance of the research is substantiated, taking into account
the existing globalization challenges of the development of the
economies of the countries of the world, taking into account the
principles of the circular economy.
• The advantages of the development of eco-industrial parks for the
economic, ecological and social spheres are highlighted.
• Current regulatory and legislative acts regarding the development of
industrial parks in Ukraine are dened.
• The essential dierence between industrial and eco-industrial parks
is singled out.
• The principles of institutional support of eco-industrial parks are
claried;
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• The value of incentives and tax benets for the development of eco-
industrial parks, as well as their application in dierent countries of
the world, is highlighted.
• To substantiate the foundations of institutional support for the
development of eco-industrial parks in the conditions of the
formation of a circular economy, a recurrent functional relationship
is proposed.
• Measures to ensure institutional support of eco-industrial parks in
the conditions of the formation of a circular economy taking into
account world experience are substantiated.
The methodological basis of this research is a systematic approach,
which makes it possible to comprehensively approach the issues of
institutional support for the development of eco-industrial parks and take
into account the multi-vector nature of this process in the conditions of
the circular economy formation, which is possible if the principles of the
systemic approach are followed.
1. Literature Review
The relevance of research topics is conrmed by numerous articles by
leading scientists of the domestic and foreign level. Among the scientists
who studied the peculiarities of the development of eco-industrial parks
in the context of the circular economy and taking into account the modern
trends of sustainable development of territories, the following should
be noted: Abraham (2021); Butko (2020); Chin (2021); Cruz-Avilés
(2021); Derhaliuk (2021); Maryam (2022); Negesa (2022); Nuhu (2021);
Petrushenko (2021); Pohrebniak (2021); Popelo (2021); Revko (2021);
Shevchuk (2021); Shkarlet (2020); Song (2021); Tseng (2021); Tulchynska
(2015); Vovk (2021); Zhang (2021) and other.
The scientists’ article (Nuhu et al., 2021) is devoted to the evaluation and
features of the application of tools of the geoinformation system and multi-
criteria decision-making in determining and designing the locations of eco-
industrial parks. Researchers (Maryam et al., 2022) set out to identify the
existing condition of the batik village area in Louvain Surakarta in order to
transform it into an ecological industrial park.
The study found that medium-sized micro-enterprises in the Laweyan
Batik Village area of Surakarta produce hazardous liquid, gaseous and solid
waste. According to scientists, the creation of an eco-industrial park will
have ecological, economic and social eciency, in particular by transitioning
from a linear industrial system to a circular system.
444
Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
The article (Abraham et al., 2021) analyzes the role of the circular
economy in minimizing the consumption of fresh resources and maximizing
the reuse of materials. As a result of the study, it was proved that an eco-
industrial park can be protable under the condition of strict restrictions
on emissions and materials.
The practical signicance of the research results (Chin et al., 2021) is
a proposal for the creation of an eco-industrial park on an industrial site,
which will be aimed at solving the problem of reducing the consumption
of fresh water or pollutants. The paper (Negesa et al., 2022) is based on
a study of the transition process and results of a typical African industrial
park, the Hawassa Industrial Park (HIP) in Ethiopia. The authors took into
account the international framework for eco-industrial parks and applied
the framework of strategic management of the niche in order to reveal the
eciency and the transition process.
The authors of the article (Cruz-Avilés et al., 2021) prove that eco-
industrial parks are a relevant alternative for reducing and optimizing
water consumption through reuse and recycling networks. The result of
the study is a proposal for optimal design of water supply networks in eco-
industrial parks. Scientists (Petrushenko et al., 2021) are investigating
the possibilities and directions of creating eco-industrial parks in the
conditions of a transitional economy. The authors are convinced that one of
the conditions for anticipatory sustainable development in Ukraine is the
creation of a national program to support the transformation of innovation
parks into their ecological versions, as well as investment in greeneld eco-
industrial parks.
The authors prove (Tseng et al., 2021) that their research will contribute
to the creation of attributes for the transition to hierarchical eco-industrial
parks with qualitative information. Scientists have proven that the policy
and regulatory framework contribute to the cooperation of rms in the
model of transition to an eco-industrial park.
The scientic work (Song et al., 2021) demonstrated that the creation
of a national eco-industrial park contributes to the reduction of industrial
emissions. In the study (Zhang et al., 2021), scientists analyze the
advantages of applying the industrial symbiosis approach in agriculture and
horticulture. As a result of the research, a project of an eco-industrial park
combining dairy farming, greenhouse vegetable growing and mushroom
cultivation is proposed.
Despite a number of studies on the peculiarities of the development of
eco-industrial parks, the issue of institutional support for their development
requires further study and analysis.
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2. Results
Innovative infrastructure plays an important role in innovative
development. Innovative infrastructure is represented by a wide range of
diverse participants, including business incubators, innovation centers,
industrial and eco-industrial parks, etc.
Industrial and eco-industrial parks are one of the powerful drivers of
innovative development and the establishment of a circular economy.
Regardless of the dierent legislative features of dierent countries of the
world, the unifying factor for industrial and eco-industrial parks is that it is
not only a certain plot of land on which industrial production is located, but
it is a center of innovatively oriented enterprises for which a special regime
of economic activity is extended for the further activation of innovative the
direction of their activities. The development of eco-industrial parks has
great advantages for ensuring the development of the economy and the
formation of a circular economy, since they:
• intensify investment activity in innovative development, as a result
of the fact that the unication of enterprises provides greater
attractiveness and opportunities for diversication of sources of
attraction of investment resources;
• provide subsidies for priority, high-tech areas of industrial
production and their innovative orientation, including through
preferential taxation;
• have an ecological orientation of production activities and apply the
principles of the circular economy;
• activate employment and consumption of specic territories near
which they are located;
• increase the self-suciency of territorial communities due to the
payment of local taxes, etc.
The formation of industrial parks is not something new, since the rst
experience of such an association took place in Manchester back in 1896.
Over time, the development of industrial parks became widespread. Today,
the idea of industrial parks has transformed into eco-industrial parks. In
Ukraine, the law “On Industrial Parks” currently operates, which denes
that it is:
The territory designated by the initiator of the creation of the industrial
park in accordance with the urban planning documentation, equipped with the
appropriate infrastructure, within which the participants of the industrial park can
carry out economic activities in various spheres (Shevchuk, 2021: 59).
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Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
In general, such a legally established denition reects the general essence
of an industrial park, which consists in the union of various production
enterprises that may belong to dierent spheres of economic activity with
the aim of attracting investment resources, reducing production costs, and
producing innovative, competitive, environmentally friendly products with
taking into account the principles of the circular economy.
The main dierence between eco-industrial parks and industrial parks
is the construction of a production model aimed at increasing resource
eciency and increasing not so much economic, but more ecological and
social indicators of industrial production.
The development of eco-industrial parks in the conditions of the circular
economy formation requires institutional support. Institutional support for
the development of eco-industrial parks directs the actions of authorities
at dierent levels to establish certain norms, rules, restrictions, the
procedure for their establishment and compliance with the achievement
of sustainable development goals with interaction with the subjects of
territorial communities and eco-industrial parks.
Institutional support for the development of eco-industrial parks should
provide eective support for the development of institutions supporting
eco-industrial parks, ensuring compliance with the rights and freedoms of
business entities, which can be provided directly or indirectly.
In turn, institutional support for the development of eco-industrial parks
involves the work of relevant institutions and organizations in the direction
of the development of legal regulations, as well as direct and indirect support
of state and local authorities, corporate and entrepreneurial structures,
specialized institutions in the eld of industry, innovative development,
direction in the direction of the establishment of a circular economy, etc.
A special place in institutional support is played by regulatory policy,
which reects the needs of society and acts as an activator of entrepreneurial
activity in the direction of the creation and functioning of eco-industrial
parks.
At this time, a number of important documents have been adopted in
Ukraine, which, in addition to the Law of Ukraine “On Industrial Parks”,
includes the “National Economic Development Strategy of Ukraine for the
period until 2030”, which outlines the directions and principles of directing
industrial parks in the direction of their reformation into eco-industrial
parks. The problems of industrial parks are taken care of by the Ministry
of Economy of Ukraine, which is entrusted with the responsibilities of
ensuring and implementing state policy, the register, monitoring and control
over compliance with the requirements for the functioning of Industrial
Parks, providing informational and advisory support and activating the
involvement of participants.
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The main driver of the development of industrial and eco-industrial
parks in the world is the consolidation of tax incentives and benets (Fig. 1).
Fig. 1. Incentives and tax benets for the operation of eco-industrial parks in the
world. Source: generated by the authors
It should be noted that despite the uniformity of the concept of the
development of eco-industrial parks in dierent countries, there are
dierent vector directions of benets for their activities. Among the most
common and, as evidenced by experience, eective benets are:
• Benets in relation to corporate income tax, which are set at
dierent percentages. This is the most widespread benet for the
activities of eco-industrial parks. It is used in such countries as the
Czech Republic, Turkey, Poland, Slovakia, the Netherlands, China,
etc. The reduction of corporate income tax often depends on the size
of investments in the eco-industrial park:
• Exemption from customs duties on new equipment and equipment
imported for the operation of enterprises within the eco-industrial
park. Regarding the exemption from import duties, deadlines may
be set for the start of the park. This benet is used in Azerbaijan,
Belarus, South Korea, the Netherlands, Turkey, Uzbekistan, etc.
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Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
• Exemption from payment of value added tax on equipment and
equipment for new equipment. Such benets are provided in
Azerbaijan, Belarus, Poland, the Netherlands, Turkey, Taiwan,
Kazakhstan, China, South Korea, Uzbekistan.
• Exemption from land tax or land rent tax or receiving a reduced rate.
Such benets are used in Turkey, Taiwan, China, and Lithuania. In
Turkey, plots of land are provided free of charge for the production
needs of eco-industrial and industrial parks.
• Exemption from paying local taxes and fees. This benet applies in
Hungary.
• Reduction of taris for communal services is used as a benet in
Turkey and Hungary.
• A reduction in the rate of the single social contribution in relation to
the size of the investment during the rst ten years of operation of
the eco-industrial park is applied in Turkey.
Also, dierent countries use a dierent approach to obtaining tax
incentives and discounts for paying taxes. Most often, the size and
calculation of preferential rates depends on the size of the investment in the
eco-industrial park. Such a system of their calculation is used in Slovakia,
Turkey, South Korea, Poland, and the Czech Republic. In South Korea and
China, the calculation of tax discounts depends on the volume of exports of
products of eco-industrial parks, issued.
To justify the principles of institutional support for the development of
eco-industrial parks in Ukraine (EIP) in the conditions of the formation of
a circular economy, we suggest using a systemic approach. Its visualization
can be oered in the form of a recurrent functional relationship, which has
the following form:
(1)
where G – the goals of the development of eco-industrial parks in
the conditions of the formation of a circular economy (development of
the industrial sector of the economy, its revitalization (d), increasing the
employment of the population (ep), ensuring the environmental friendliness
of production (me), increasing the eciency of the use of resources (er),
attracting investments (i), activating small business (sb) etc.). Specications
and other goals that are planned to be achieved during the development of
eco-industrial parks must have certain economic, social and environmental
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CUESTIONES POLÍTICAS
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indicators that illustrate the positive eect of their development;
BE – business entities subject to institutional and regulatory changes,
including the application of preferential taxation and other incentives;
NR – norms and rules necessary for institutional support for the
development of eco-industrial parks in the conditions of the formation of
a circular economy. It includes spreading awareness of business entities
and the population about the benets and signicance of eco-industrial
parks (i), increasing innovative and ecological culture of the population
(iec), activation of territorial communities regarding the creation of eco-
industrial parks (tc), development of education and science capable of
increasing intellectual and innovative potential (iip), etc;
R – resources that must be provided during the development of eco-
industrial parks. Such resources include the possibility of allocating
necessary land plots, providing them with the necessary infrastructure,
attracting investment resources, including through public-private
partnerships, etc.;
A – regulation that must be used in the formation of institutional support
for the development of eco-industrial parks, which involves changes in the
regulatory and legislative framework, the implementation of appropriate
policies for the development of eco-industrial parks.
Thus, this recurrent functional relationship will make it possible to take
into account the various directions of institutional support of eco-industrial
parks in the conditions of the circular economy formation and to determine
the eectiveness of such support.
Institutional support for the development of eco-industrial parks in the
conditions of the circular economy formation, taking into account world
experience, should include the following measures (Fig. 2):
• A study of the world experience in the development of industrial
eco-industrial parks, as well as the transformation of industrial into
eco-industrial parks.
• Determination of requirements for eco-industrial parks, taking into
account the current situation in the country and its regions, as well
as the principles of the circular economy.
• Substantiating the need and importance of institutional support for
eco-industrial parks in the conditions of the formation of a circular
economy.
• Introduction of changes in the regulatory and legislative eld in the
direction of the development of eco-industrial parks.
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Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
• Substantiation of the principles of institutional support for the
development of eco-industrial parks, including with the help of a
recurrent functional relationship.
• Assessment of the possibility of obtaining an eect in the economic,
social and ecological spheres as a result of institutional support
and development of eco-industrial parks in the conditions of the
formation of a circular economy.
• Substantiating the benets of incentive and preferential measures
to encourage the development of eco-industrial parks, which are
related to regulatory changes.
• Determining the eectiveness of the developed measures of
institutional support for the development of eco-industrial parks in
the conditions of the formation of a circular economy.
• Monitoring of changes in the institutional sphere in relation to
the activation of the development of eco-industrial parks in the
conditions of the formation of a circular economy.
• Analysis of macroeconomic indicators and determination of the
impact on their changes as a result of institutional support for
the development of eco-industrial parks in the conditions of the
formation of a circular economy.
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Fig. 2. Measures regarding institutional support for the development of eco-
industrial parks in the conditions of the circular economy formation, taking
into account world experience. Source: generated by the authors based on
Industrial Parks, Law of Ukraine on June 21, 2012 № 5018-VI, National
Economic Strategy 2030. Cabinet of Ministers of Ukraine. https://nes2030.org.
ua.
Direct support for the development of eco-industrial parks can be
provided from state and local budgets. Management companies can receive
nancing for equipping eco-industrial parks, developing infrastructure,
preparing project documentation, setting aside land plots, etc.
Decision-making regarding institutional support for the development of
eco-industrial parks in the conditions of the circular economy formation
should take into account the national culture, political conditions, resource
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Anna Pohrebniak, Nataliia Shevchuk, Svitlana Pereverzeva, Kateryna Redko y Andrii Tymoshenko
Institutional support for the development of eco-industrial parks in the conditions of the circular
economy formation taking into account world experience
opportunities and foresee the directions of the country’s further economic
development, taking into account the existing crisis phenomena.
Conclusion
The scientic novelty of this study is the substantiation of the principles
of institutional support for the development of eco-industrial parks in the
conditions of the circular economy formation using a systemic approach,
which is proposed in the form of a recurrent functional relationship and
includes taking into account the goals of the development of eco-industrial
parks, the identication of business entities involved in the work of eco-
industrial parks, norms and rules necessary for the institutional support of
development in the conditions of the circular economy formation, resources
for the development of eco-industrial parks in the country and regulatory
measures necessary for directing economic policy to their development.
The practical signicance of this update is that this functional recurrent
relationship will make it possible to apply a conceptual and methodological
approach to the assessment of eorts to institutional support the
development of eco-industrial parks and will contribute to the achievement
of the goals of the circular economy.
Institutional support for the development of eco-industrial parks
in the conditions of the circular economy formation will contribute to
obtaining such positive results for the post-war economy of Ukraine and
will contribute to:
• revitalization of the industrial sphere of Ukraine’s economy;
• activation of attraction of investment resources, including foreign
investments;
• increasing the environmental friendliness of industrial production
and its zero waste;
• use of “green” technologies, careful use of non-renewable resources;
• reduction of waste due to the implementation of circular economy
principles;
• ensuring the improvement of the eciency of the use of resources;
• ensuring increased self-suciency of territorial communities in the
locations of eco-industrial parks;
• promote the interaction of the territorial community with business;
• increasing the employment of the population and the development
of small businesses;
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• obtaining a production symbiosis for the participants of the eco-
industrial park, etc.
Issues related to the development of eective state management
mechanisms for the activation of the attraction of investment resources for
the development of eco-industrial parks, as well as the determination of the
principles of transformation of existing industrial parks into eco-industrial
parks, require further research.
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Esta revista fue editada en formato digital y publicada
en octubre de 2022, por el Fondo Editorial Serbiluz,
Universidad del Zulia. Maracaibo-Venezuela
Vol.40 Nº 74
