Proximity and Complementarity in Hong Kong-Shenzhen Industrialization

The success of Software Technology Parks (STPs) in the 1990s encouraged the Government of India to announce the scheme of Special Economic Zones (SEZs) as part of the Export-Import Policy in March 2000, to be effective from April 2000 to achieve a three-fold objective of increasing exports, accelerating the country’s economic growth, and attracting foreign direct investment (FDI). This scheme was continued in the ForeignTrade Policy 2004-2009, and aimed at providing a globally competitive, conducive, and free atmosphere for exports, and attracting domestic and foreign investments. The SEZ concept, as distinguished from the earlier patterns of Export Processing Zones (EPZs) and 100 per cent Export Oriented Units (EOUs) recognises the issues related to economic development, and provides for developing self-sustaining industrial townships along with the major industrial belts, so as to minimise pressure on the existing infrastructure of nearby settlements. This is true of multi-product SEZs where the area acquired is large, and not in case of other patterns, where the area is relatively small. SEZs are duty-free insulated enclaves of development, and are deemed to be non-domestic tariff areas for purposes of trade operations, and duties and tariffs. They allow 100 per cent FDI in the development of SEZs and their infrastructure facilities. Unlike EPZs, SEZs can now be developed by the public, private, joint sector or by the State governments. The Centre acts as a facilitator by providing the framework for establishing the SEZs, and monitoring the performance, and fulfilling the norms expected of SEZs to serve the national, state, and local economy. The policy offers several fiscal and regulatory incentives far beyond those covered in the earlier patterns, to developers of SEZs as well as to manufacturing and service enterprises promoted within the zones, and for the development of infrastructure.

Special Economic Zones (SEZ) have become investment- and industrial hubs for developing countries seeking economic growth and development since China successfully established its first economic zones in its southern region, mainly in Shenzhen, Xiamen, Shantou and Zhuhai in the 1980s. The „model‟ is sought after for application across Africa. Recently, South Africa, through its Department of Trade and Industry (DTI) has issued a draft bill which considers creating SEZs. What is the experience with SEZs in China and Africa and what are lessons from other such zones for South Africa? Special Economic Zones are designated geographic areas with specifically designated liberal commercial and economic policies aiming at attracting more foreign investments. China for many African countries is seen as an economic growth model; the „middle kingdom‟ ranks as the world‟s second largest economy. The increasing density of Sino-African relationships over the last decade has boosted investments and trade in Africa, and it has contributed to China‟s modernisation and its rise on the international scene. For example Shenzhen, which was a small village, has rapidly become a modern city right next to Hong Kong. With its Special Economic Zones, China has attracted outward Foreign Direct Investment which has enhanced the creation of employment, generated investments and technology transfer. Such success was achieved through economic reforms following the “open door” policy in the late 1970s, namely trade liberalisation and market openness, as well as extremely liberal labour regulations.

The development since the late 1970s of four Special Economic Zones in South China, in which a variety of economic change is being piloted, has now been widely documented. These zones have certain similarities with Export Processing Zones in some other countries within Southeast Asia, although they are more comprehensive in development and include the provision of housing for foreigners and local Chinese, as well as social services and many other facilities. Housing and service provision has, to an extent, however, lagged behind the economic and physical development of the Chinese zones. The authorities in the zones have begun to view housing as an item worthy of investment, and the coexistence of foreign firms and joint ventures with Chinese-owned undertakings within the zones has meant that incomes and aspirations, and hence demands for facilities, are often higher than elsewhere in the country. This has meant an important re-examination of socialist principles in the zones. Housing in particular is becoming a commodity which is of higher quality than elsewhere in China and can be bought and sold, and many types of social and retail services are also being provided by individuals and firms rather than by the state or larger production units. In this paper the authors examine some of the changes currently being witnessed in these zones and the dilemmas which they pose for a government still attempting to maintain an avowed socialist orientation in its policy. In particular, they discuss the emergence of competition for housing and resources, and consider the extent to which the commodification of social facilities is compatible with the continuation of socialist state policy.

This thesis seeks to advance the study on China's Special Economic Zones (SEZs) by exploring two important issues untouched by previous researches --- the reasons for the problem of policy inconsistency, ambiguity and unpredictability in the SEZs, and the effectiveness and significance of their experimental function as a laboratory for China's ongoing industrial reform and open-door policy. The Xiamen SEZ, rarely investigated by Western scholars, is chosen as the object of this case study because of its unique suitability. It is hoped that the findings from this thesis will significantly enhance the understanding of the difficulty and complexity of the reform and openness in China in general and in the SEZs in particular. This thesis approaches the two issues from three perspectives, which reflect three most important relationships regarding the development of the SEZs --- the one between the economic reform and the Special Policy, the one between the local economic development and foreign direct investment (FDI), and the one between the SEZs and the domestic economy. It examines the enterprise reform, transformation of the local industry through utilizing FDI, and the relationship between the foreign trade reform and the price reform, in the Xiamen SEZ in its first decade of the 1980s. In particular, it includes a detailed analysis of the characteristics and effects of Taiwan investment in Xiamen in recent years and hence represents one of very few, if not the first, serious studies, at the moment, on the subject. It concludes that the policy problem in Xiamen has been caused mainly by 1) the confusion of the economic reform and the implementation of the Special Policy, 2) the increasing dominance of Taiwan capital on the local economy, and 3) the close institutional link between the SEZ and the domestic economy. Also, it finds that a decade of the reform and development in Xiamen has produced few innovative and applicable experiences which could benefit the domestic reform and open-door. Thus, the effectiveness and significance of the SEZ's experimental function has so far been very limited.

Conceived as industry enclaves when they were originally built, China’s special economic zones (SEZs) might be thought to have few linkages to the local economy. Here we investigate whether SEZs exceed industry enclaves by bringing the literature on the geography of innovation into dialogue with that on industry enclaves. Drawing upon detailed information on the geographical boundaries of these SEZs and a database of geocoded Chinese patents, we analyse the economic geography of technological collaboration between SEZs in China’s Suzhou-Wuxi-Changzhou (SWC) metropolitan area. Overall, we find that: (1) enterprises in SEZs account for 55.6% of the region’s total patents and 75.4% of its co-patents; (2) knowledge linkages within and between SEZs in the SWC metropolitan area are quite limited and most of the knowledge linkages are beyond the region; and (3) there is considerable heterogeneity between SEZs in terms of their knowledge linkages, with multinational and domestic enterprises playing different roles.

Since China decided to establish special economic zones (SEZs) in the cities of Shenzhen, Zhuhai, and Shantou in Guangdong province and in the city of Xiamen in Fujian province, the question of the nature of the SEZ economy has been a matter of constant concern. In academic circles it has brought about broad discussion with widely divided opinion. Some say the SEZ economy is capitalist in nature; some say it is socialist. There are also some who say it is New Democratic in nature. Still others consider it to be state capitalist in nature, or basically state capitalist. The question of how to recognize correctly the nature of the SEZ economy has important practical significance in regard to the implementation of this important policy decision by the Central Committee, and in regard to further emancipating our thought, strengthening our confidence, and pushing ahead with the construction of the SEZs. For this reason, it is necessary to engage in a theoretical discussion of this matter. This essay will addre...

This report is a continuation of last year’s development report on the special economic zones in China. Through the analysis of the latest available statistical data, this report attempts to show the recent status of the development of China’s special economic zones. In order to be consistent with last year’s report, this report adopts the same written framework and data analysis indicators.

An increasing number of investors is interested in the Free Trade Zones (FTZ), which are the Special Economic Zones (SEZs) that have developed globally within recent years. However, in 1980 China led the SEZ movement by creating four free trade zones inside its territory. The first four SEZs were all based in south-eastern coastal China and were established in the cities of Shenzhen, Zhuhai, Shantou, and Xiamen. The expression “Special Economic Zone”, here after seen as SEZ, refers to a geographic region within a nation where there are fewer custom restrictions than in the rest of the country. SEZs are created to facilitate economic growth through the encouragement of direct foreign trade. FTZs and EPZs (Export Processing Zones) are more common and more easily-approved in China compared with other areas. During the 1990s, Special Economic Zones became significant especially in manufacturing sectors, encouraging investors to establish companies in these development zones thanks to incentives such as limited Corporate Income Tax (CIT fixed at 15%), triggering the economic growth of China to the WTO (2001).

A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category ‘SEZ’ covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others.Special Economic Zone (SEZ) policy is also one of the steps India has taken to boost economic growth through outward looking approach. Special economic zone is a specifically duty fee enclave and shall be deemed to be foreign territory for the purpose of trade operations and duties and tariffs.lt examines the determinants of investment and export performance empirically within the theoretical framework provided by the new growth theories. SEZ's will be the driving force towards a new era of high growth, a new mantra for filling the ‘gaps’ in economic reforms.

India has used export processing zones as a development strategy since the mid 1960s. The performance of these zones did not meet expectations and, in 2001, the government changed the rules and the name, and recast them as special economic zones. Indian special economic zone policy was formulated to facilitate the private development of big industrial townships. This is a significant departure from the typical export zone model, where governments usually develop the zone and invite entrepreneurs to start firms within it. However, the zone policy is unlikely to achieve its objective because of land acquisition problems. This paper analyses the effect of land laws such as land ceiling and land use clauses, and the political nature of land dealings in the context of special economic zone development in India, and concludes that private land acquisition is not possible with the current structure of land laws in India, and that this is a primary problem for the private development in special economic zones in India.

This article focuses on the interaction and relationship between Special Economic Zones (SEZs) as facets of unilateral economic law, international investment law, and the investor–state dispute settlement (ISDS) system in a four-fold manner. It initially explains the role of international investment agreements in protecting foreign investments in these zones. Then, it classifies the public or private nature of such zones and goes on to examine related claims through past case law, to determine how modern SEZs must be created to reduce host State liability. Whilst doing so, it provides important suggestions to improve the domestic and international success of SEZs by reducing costs associated with it. In this manner, this article endeavours to highlight the need for a balance in public policy between the rights of host States and foreign investors to ensure that SEZs continue to attract significant amounts of foreign investment. It also stresses on understanding transnational foreign investment rules and the implication of the previously concluded investor–ISDS proceedings so that host States can ensure better regulation of foreign direct investment in these areas.

Locational Determinants of Japanese Foreign Direct Investment in China

In addition to static benefits, the dynamic benefits of special economic zones (SEZs), in terms of linkages with the national economy outside the zones and technology transfer from foreign to local firms, are crucial for structural transformation. This chapter assesses the extent to which the SEZ or SEZ-like policies and related FDI attraction have led to technology transfer in the leading sub-Saharan African apparel exporters, namely Mauritius, Madagascar, Kenya, Lesotho, Swaziland, and Ethiopia. In doing so, it focuses on local firm-level learning, which underpins technology transfer, and the conditions under which it occurs. It concludes that targeted infrastructure provision of physical zones is important, but that global economy dynamics such as global buyer and foreign investor strategies as well as the complexities related to local firm technological capability building are crucial to understanding technology transfer, arguing for more strategic industrial policies around SEZs.

Interactions between economic growth and environmental quality in Shenzhen, China's first special economic zone

The goal of Special Economic Zones (SEZs), which are designated regions with eased economic laws, is to draw in foreign investment, increase exports, and promote industrial development. India offers benefits like tax breaks and streamlined clearance processes. These areas have been vital in boosting the economy, establishing jobs, and developing infrastructure; other emerging countries have been inspired by their achievements. Method:This study analysesthe significance and export success of SEZs in Indiausing secondary data from reputable sources such as the Ministry of Commerce and Industry, SEZ in India, and the Economic Survey of India. State-wise and sector-wise data are examined with descriptive and inferential statistics, such as paired t-tests; findings are deemed statistically significant if p < 0.05. Result:By 2023–2024, India's 295 active SEZs—with a focus on southern states (184) and IT/ITES (169)—generated ₹6, 69,980 Cr in investments and ₹1,355,220 Cr in exports, producing 29.8 million jobs. On the other hand, sectoral and regional disparities underscore the importance of well-rounded policies. Discussion: Findings show Exports, employment, and investment growth have all been significantly impacted by SEZs. A significant surge in investment and job creation in India's Special Economic Zones. Conclusion:In order to address sectoral imbalances and encourage balanced, long-term growth, the paper looks at the role of Special Economic Zones (SEZs) in India and demonstrates their significant contributions to employment, investment, and exports. It focuses onmanufacturing sectors and fostering an environment that is advantageous to investment.Taradevi Harakhchand Kankaria Jain College, 700002, Cossipore, Kolkata, India