A sez, therefore, will be established in a state with high. How can africa ensure success for special economic zones. Pdf on jan 1, 2003, tatsuyuki ota and others published the role of special economic zones in chinas economic development as compared with asian export processing zones. It is only valid for the shenzhen special economic zone, which used to have its own border crossing with china when it was a closed city a few years ago. In this paper, i trace how the shenzhen built environment mediates images and experiences of hong kong, arguing that transnationality in the sez is an everyday practice where tradition. Special economic zones in august 2009, prime minister, najib razak, opened malaysias first special economic zone sez in the east coast economic region ecer. Herlevi june 18, 2016 abstract the competition for capital is a key facet of the global economic system. Have the special economic zones succeeded in attracting. What africa can learn from chinas special economic zones.
Special economic zones and economic development the aim of part one, through its two chapters is to set up a solid framework for assessing the impact of sezs, in general, on the economic development process in the host countries. Building engines for growth and competitiveness in china. But in 1980, thencommunist party leader deng xiaoping designated the southern town as one of four special economic zones sezs, thereby giving it special tax benefits and preferential treatment to foreign investment. A special economic zone sez refers to designated areas in countries with special economic regulations that differ from other areas in the same country. Economic development in the shenzhen special economic. Negative aspects of special economic zones in china. In the late 1980s, practically every chinese city or township had opened its own science and technology development zone, where conditions were similar to those of the sez. Since shenzhen is situated in the pearl river delta refered to as the delta, together they are regarded geographically as an integrated region. The shenzhen government has drawn up a blueprint to expand the countrys first special economic zone. Upsc questions related to special economic zones sezs what is special economic zone in india. The benefits of these special economic zones in china can directly be seen in the development of well established economic zones. It can also be tailored so that it is targeted at specific industries rather than geographical areas of activity.
The hope is that the shanghai free trade zone will reignite. Chapter i, first, scans previous works on sezs in search for theories and. In april 1982, a meeting with planning experts, engineers. Mexican special economic zones to be established the tecma. A comparative study of hong kong, singapore, and shenzhen special economic zone. Introduction the city of shenzhen, the first special economic zone sez in china, is located in the southern part of guangdong province with the daya bay to the east, pearl river estuary to. The benefits ascribed to the sez never really materialized. As part of its economic reforms and policy of opening to the world, between 1980 and 1984 china established special economic zones sezs in shantou, shenzhen, and zhuhai in guangdong province and xiamen in fujian province as well as designating the entire island province of hainan as a special economic zone.
Shenzhen, in southern china near the border with hong kong, was among the first 4 locations. But the border structures were not torn down completely. Five other special economic zones have since been established. Chinas nationallevel special economic zone programs in comparative context april a. Chinas national and provinciallevel development zones april a. Moreover, the experiences from these improvements in the chinese zones have been adopted and extended by african authorities to the broader economy. As a sez, shenzhen is given the privilege to embrace market capitalism policies under the guise of socialism with chinese characteristics, unlike other cities in mainland china which is based on a planned economy. Created after deng xiaopings economic reforms were implemented in china in 1979, special economic zones are areas where marketdriven capitalist policies are implemented to entice foreign businesses to invest in china.
Through the sezs special incentives, it is hoped to attract myr90bn usd26bn in domestic and international investments by 2020, and to create more than 220,000 new job opportunities. Without special economic zones, the economy of china can not grow up so rapidly these years. This paper addresses several key research questions. A growth model for chinas special economic zone request pdf.
Located just north of hong kong, shenzhen, the largest and oldest of chinas special economic zone sez has been both a project and symbol of postmao modernization. Sezs were first developed in 1980 as part of deng xiaopings drive to open up china to the rest of the world and cement chinas place on the global stage as a major economic. The book provides insights into the development of special economic zones, which are an important factor in the political and economic reforms in china. Regulations of shenzhen special economic zone on labor.
Article 24 the shenzhen special zone shall be under the direct management and administration of the guangdong provincial committee for the administration of special economic zones. Countries increasingly use special economic zones sezs to attract foreign direct investment fdi and achieve other. Negative aspects of special economic zones in china the general impression that chinas special economic zones are a remarkable success is an incomplete one. The case of szes in chinashenzhen chinas special economic zones chinas special economic zones 1. The land area in the two outer counties is much greater than in the four special economic zone counties.
Apr 21, 2017 forty years ago, shenzhen, china, was a sleepy fishing village of 30,000. Current policy has shifted to the imminent launch of special economic zones sezs as tools for national reindustrial development and supporting underdeveloped regions. Forty years ago, shenzhen, china, was a sleepy fishing village of 30,000. Pudong literally means pu east, the pu being the huang yellow pu river, or the huangpu, as it is most commonly written the western half of the city, pu west, is puxi. It discusses a number of topics, including the history and the modernization of special economic zones in china, the contributions of special. China to remove outdated shenzhen special economic zone. Earlier this month, mexicos president, pena nieto, outlined 10 points for a new reform plan aimed at cleaning up corruption, improving industry, and cutting down on. China scraps border to shenzhens special economic zone. We seek, in particular, quantitative and analytical papers dealing with institutional change, policy and performance of the chinese economy. Regulations on special economic zones in guangdong province. The payback period needed to recover the costs incurred in the transfer of different types of plant are calculated. The shenzhen special economic zone outline social and economic development plan that deals with the future population and economic structure of the special economic zone. In 1980, the fifth session of the standing committee of the national peoples congress approved the decision of setting up special economic zones in guangdong province shenzhen, zhuhai, shantou and fujian xiamen.
Dec 08, 2015 while mainstream economic development across asia remains focused on building and maintaining infrastructure, providing better public services, and creating a positive business environment, many countries, including regional heavyweights like india, have returned to the concept of special economic zones sezs as a core element in their. Epz or in the other names open economic zone or economic development zone is similarly to ftz in terms special economic zone. But in 1980, thencommunist party leader deng xiaoping designated the southern town as one of four special economic zones. As the competition for capital ramps up, government officials often view special economic zones as an indispensable tool in attracting foreign direct investment to their countries. Special economic zones and regional integration in africa. Section 5 addresses the various challenges and opportunities that arise when special economic zone programmes are established in countries embarking on regional integration processes, before section 6 concludes. Chinas new special economic zone evokes memories of.
With a focus on china and africa the special economic zones sezs can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. Special economic zones, special economic zone policy, foreign direct investment, panel data model, india 1. This paper will examine the development process of the shenzhen special economic zone sez referred to as shenzhen in the ten years since its establishment. Shenzhen was the first of the special economic zones sez to be established by paramount leader deng xiaoping. Rattanawong s proceedings of the international multiconference of engineers and computer scientists 2014 vol ii. Dec 03, 2015 chinas experience indicates that special economic zones can help. Request pdf a growth model for chinas special economic zone we employ a general macroeconomic analysis to describe the economic growth and performance of the special economic zone sez. The cost of manufacturing toys in the shenzhen special. The world economic forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. A zone can also serve as a laboratory to test whether businessfriendly policies are worth rolling out on a larger scale. In may 1980, china allowed capitalist activity for the first time since the communist revolution, in four designated cities known as the special. Until 2010, shenzhen special economic zone sez comprised four of the nine districts of shenzhen city in guangdong province, namely luohu, futian, nanshan, and.
Economic development and housing policy in the asian. We inadvertently strayed into baoan, but fortunately, whilst the border post between the sez and china is still there, it is no. A special economic zone is an area in which business and trade laws are different from the rest of the country. The paper exploits a unique chinese municipal dataset to assess the impact of special economic zones on the local economy. Special roles and innovations in the special economic zones shenzhen zhuhai shantou xiamen hainan economic performance of special economic zones. Foremost, the special economic zones especially the first several successfully tested the market economy and new institutions and became role models for the rest of the country to follow. South africas experience with spatial economic interventions has had a chequered history with the industrial development zone programme most recently failing to generate anticipated development. Special roles and innovations in the special economic zones shenzhen zhuhai shantou xiamen hainan economic performance of special economic zones, 19782008 exports and fdi inflows in sezs, 1978. Chinas special economic zones and industrial clusters. Incorporated as a notforprofit foundation in 1971, and headquartered in geneva, switzerland, the forum is tied to no political, partisan or national interests. Pudong special economic zone the pudong district of shanghai lies near the center of the city, east of the huangpu river, which divides the city into two halves. China is the seminal example of successfully using sezs but this masks chinas vast internal. Special economic zones the gateways to china, 1987. The law on national strategic special zones was adopted in december of that year, and the bold reform.
For example, shenzhen economic zone, after being designated as one of the first special economic zones, the city grew from being a small village to a city with a population of more than 10 million within a few decades. Until 2010, shenzhen special economic zone sez comprised four of the nine districts of shenzhen city in. The success factors of chinese special economic zones include the strong and longterm commitment of the government, a conducive business environment in the zones, strategic locations, technology upgrading and skills training, and strong linkages with the local economy. Global experiences with special economic zones with a focus. In 1979, chinas central government decided to set up special economic zone shenzhen sez in shenzhen, which would enjoy duty free policies for imported raw materials, machines and equipment, as. Chinas special economic zones sez were first developed in 1980 as part of deng xiaopings drive to open up china to the rest of the world and cement chinas place on the global stage as a major economic player. Chinas path lies in setting up special economic zones to accomplish the transformation of the system and in establishing a market economic system to seek a road of development from widespread poverty to prosperity for all. Have the special economic zones succeeded in attracting fdi. A new look at special economic zones in asia asian. Special economic zones in china in china the special economic zones policy does not have simple, clearly defined, objectives. This paper examines the problems and costs involved in the transfer of production facilities from hong kong to the shenzhen special economic zone of china. Chinas new special economic zone evokes memories of shenzhen. Since the establishment of the shenzhen special economic zone in 1980, nearly 200 of the global fortune 500 have made local investments in the city totaling a. The role of chinas overseas special economic zones in.
Comparing the changes between the municipalities that created a sez in earlier rounds and those in later waves, i find that the sez program increases foreign direct investment not merely through firm relocation, and does not crowd out domestic investment. Mexican special economic zones to be established southern states will see mexican special economic zones as a means by which to improve security and material conditions. In 2010, the central government expanded the special economic zone to the whole of shenzhen, and metro lines spread out across the city. Pdf special economic zone sez problems, promises and. Three years later, shenzhen became a special economic zone, an area where special business policies were experimented with.
Special economic zones as noted, the purpose of the law on special economic zones law on sez is to promote economic development in certain regions that are considered underdeveloped by increasing and attracting investments, productivity, competition, and jobs. Experience gained in the development of chinas special economic zones, china development bank continued from page 1 existing sezs in china in 2014, there were 6 sezs, 14 open coastal cities, 4 pilot free trade areas and five financial reform pilot areas. Oct 23, 20 abenomics special economic zones, sans labor deregulation, head for approval stephen harner former contributor opinions expressed by forbes contributors are their own. Herlevi june 8, 2017 abstract special economic zones sezs in china have made an outsized contribution to chinas economic growth. A special economic zone or sez is a specially marked territory or enclave within the national borders of a country that has more liberal economic laws than the rest of the country. The current paper addresses the chineseinitiated special economic zones sezs in africa through a case study of the ethiopian eastern industrial zone eiz. Economic development and housing policy in the asian pacific rim. Special economic zones sezs was a main policy that has been used by chinese government since economic reform in 1978 to attract more fdi and boosting exports. Abenomics special economic zones, sans labor deregulation. Shenzhen s fast growing economy is characterized by three industries. Chinas shenzhen is often cited as the original sez model but china has over 1,500 zones and more than seven different zone programs. Chinas investment in special economic zones in africa.
After the visit of the egyptian former president mubarak to china in 1999, egypt has. Shenzhen special economic zone aims to be 5 times bigger. Zone on labor contract originally adopted at the twentyfourth meeting of the standing committee of the first shenzhen municipal people s congress on august 4, 1994. In some countries, zones are only partially functioning.
Shenzhen is a leading business, innovation and financial center in china. Introduction recognising the importance of export promotion in triggering the economic growth, the government of india established the first export processing zone epz at kandla in 1965 1. Apr 19, 2017 chinas new special economic zone evokes memories of shenzhen april 19, 2017 but in 1980, thencommunist party leader deng xiaoping designated the southern town as one of four special economic zones sezs, thereby giving it special tax benefits and preferential treatment to foreign investment. Development of the special economic zone in shenzhen, the.
Special economic zones and chinas path springerlink. Aug 11, 2015 hideo kumano was surprised when he saw the initial proposals for special economic zones sezs drafted by the government of prime minister shinzo abe in 20, under the slogan japan is back. It is not valid for the longgang or baoan districts of shenzhen. Left out of the picture are inequities in development, arable land loss, real estate speculation and labour violence. Shenzhens fast growing economy is characterized by three industries. Special economic zones sezs or industrial parks can be an effective instrument to promote industrialization if implemented properly in the right context, as shown in some of the emerging countries, particularly those in east asia. Since 1979, chinas special economic zones sez have been beckoning foreign investors to do business in china. First announced at the november 2006 summit of the forum on chinaafrica cooperation. There are government checkpoints between the counties in the special economic zone and those outside, but there appears to be little checking going on.
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