In many ways, sezs are different from other types of zones, like free trade zones and the exportoriented export processing zones. These zones, ranging from free trade zones, export processing zones, it parks to mega special economic zones, have played a significant. The policy change to a more liberalized economy is identified using sez variables as instrumental variables. The impacts of special economic zones evans school 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. This chapter argues that this is largely due to flaws in the political economy of sez schemes, which prevent replication of. I n asia, economies just starting to industrialize have used special economic zones sezs as a way to initiate or expand exportoriented manufacturingand to. Previous studies do deal with the introduction of various types of market economies unthinkable in traditional socialist china in order to reform the economic system. A new report from the asian development bank on sezs, part of the asian economic integration report 2015, looks at the factors that can drive successful sezs and what can make them a tool for growth and development. Special economic zones sezs can play a catalytic role in economic development, provided the right business environment and policies are put in place.
Among the most important instruments for attracting investment are special economic zones. The paper exploits a unique chinese municipal dataset to assess the impact of special economic zones on the local economy. In particular, special economic zones sezs offer a. Special economic zones world bank documents world bank group. 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. However, they do not comment on the problems encountered in introducing a market economy to the zones.
A new look at special economic zones in asia asian. The results indicate that export and fdi growth have positive and statistically significant effects on economic growth in these. Designing the special pilot economic zone on peatlands. Beza aims to establish sezs in all potential areas in bangladesh including underdeveloped regions with a view to. Pdf the four asian tigers economic development and the global political economy read online. Special economic zones in asian market economies kindle collection. Jul 26, 2019 the advent of the economic corridor project, a multibillion dollar bilateral enterprise finalized in 2015 between china and pakistan, has facilitated the creation of an efficient and responsive business infrastructure in the islamic republic widely touted as an upandcoming player in the international trade arena owing to its strategic placement on the world map. Special economic zones and growth in china and india. A special economic zone sez is an area in which the business and trade laws are different from the rest of the country. Chapter 2 special economic zones and economic corridors. 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. The number of zones around the world has grown rapidly this decade to more than 5,000, with many more planned. In indonesia, one of peatland restoration activities is the revitalization of the livelihoods of communities around peatlands. The evolution of economic zones in the philippines springerlink.
The special economic zones of china and their impact on. The government of china gives sezs special more free marketoriented economic policies and flexible governmental measures, compared to the more planned economy of most of china. Books special economic zones in asian market economies full download. Shenzhen special economic zone china has a number of special economic zones, but its best known is shenzhen, established at the beginning of deng xiaopings reform and opening up policy in 1979. Special economic zones in asian market economies 1st. Reports definition of special economic zone 11 structure of the report chapter 2. Although the performance of many zones remains below expectations, failing either to. Chapter 2 special economic zones and economic corridors masami ishida institute of developing economies, japan external trade organization march 2009 this chapter should be cited as ishida, m.
Special economic zones are intended to function as zones of rapid economic. Lessons from the global experience pedl synthesis paper series no. The promises and challenges of special economic zones. Common problems encountered by the asian zones include inadequate infrastructure provision, social. Doing special economic zones right international growth centre. Left out of the picture are inequities in development, arable. The advent of the economic corridor project, a multibillion dollar bilateral enterprise finalized in 2015 between china and pakistan, has facilitated the creation of an efficient and responsive business infrastructure in the islamic republic widely touted as an upandcoming player in the international trade arena owing to its strategic placement on the world map.
This allows sezs to utilize an economic management system that is more attractive for foreign and domestic firms to do. Special economic zones in asian market economies book. Aug 25, 2018 in the pursuit of industrial and regional development, many developing countries have established export processing zones epz and special economic zones sez. Some emerging economies, especially those in east asia, offer examples of success. A chinese special economic zone in northern laos iias. Export processing zones and special economic zones as generators of economic development. Since then the zone has expanded, and shenzhen now covers nearly 2,000 square kilometres. Industrial parks and special economic zones will foster a catchup strategy in less. Despite decades of international experience, there is still no blueprint for successful sez policies, and the majority of sezs fall well below expectations. Chinas special economic zones and industrial clusters. In the experimental manner that characterizes many chinese policy innovations, the rollout of these zones. Pakistans special economic zones are hot real estate thanks.
Special economic zones sezs have proliferated rapidly during the past decade and are set to multiply in the next embracing not only asia and europe but also africa and the americas. Professor riano argued that sezs should aim to relieve particular economic distortions, rather than try to provide an economic panacea. The political economy of special economic zones journal. Special economic zones and regional integration in africa. Negative aspects of special economic zones in china. Chinas investment in special economic zones in africa. Special economic zones are an important part of chinas policy of opening to the world. Designing the special pilot economic zone on peatlands peatland restoration projects in tropical countries could prevent environmental disasters such as peat fires. Special economic zones sezs are generally defined as geographically delimited areas administered by a single body, offering certain incentives dutyfree importing and streamlined customs procedures, for instance to businesses that physically locate within the zone. Special economic zones sezs geographically delimited areas within which governments. 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. Context 207 the confused definitions and aims of special economic zones 210 examples of successful sezs 214 the potential role of erzs in subsaharan africa 220 conclusions. Asean has at least 1,600 economic zones of various types. Major differences between epzs in countries with market economies and sezs in a socialist country china are brought out.
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. Special economic zones in asian market economies edited by connie carter and andrew harding. The government of china gives sezs special more free market oriented economic policies and flexible governmental measures, compared to the more planned economy of most of china. States promoting zones have sought to stimulate economic development both within and outside the zone. East and southeast asian economies, by design or by implementation, present many cases of zones focused on specific industries or on economic activities and value chain components that rely on similar. Progress, emerging challenges, and future directions. Jacob dencik from ibmpli, brussels led the two days of seminar on developing and marketing zones based on understanding of investor decision making and representatives from katowice and lodz special economic zones made presentations and joined the discussion to talk about incentives, best practice and other topical issues.
Global experiences with special economic zones with a focus. Download handbook on the south asian economies pdf epub free rickey rodgers. Despite three decades of research on economic zones, many important questions remain unanswered. Special economic zones have the reputation of being catchup vehicles by which less developed countries can stimulate economic competitiveness, and consequently economic development. Special economic zones of china sezs are special economic zones located in mainland china. While advanced economies and some emerging market and developing market economies, namely emdes, will gather.
Special economic zones in asian market economies taylor. In the philippines, the first epz was established in 1969 with the aim of exportoriented industrialization and dispersal of economic activity away from capital region. Special economic zones sezs have become a popular policy instrument around the world. Since 1979, chinas special economic zones sez have been beckoning foreign investors to do business in china. The idea was first put forward at the end of 1978, when china began its modernization drive. Special economic zone chinese economics britannica. African countries have sought to replicate the success of east asia by implementing special economic zones sezs.
Catalysts for dynamic market economies in africa 207. How can special economic zones catalyze economic development. Pdf the role of special economic zones in chinas economic. The political economy of special economic zones cambridge core. The large energyrelated deals, special economic zones and. Implications for modeling the law and governance of sezs, in carter, c. Chinas special economic zones article pdf available in eurasian geography and economics 502. Special economic zones in china the management structure of the special economic zones in china is more complex than that of most export processing zones.
Chinese capital was seen as necessary for the development of the economies of the special zones. Economic outlook for southeast asia, china and india 2019. Second, a concentration of firms implies a pooled market of workers with. A chinese special economic zone in northern laos pinkaew laungaramsri laos has followed its chinese neighbor in creating special economic zones sezs as part of the new economic engine that allows special economic policies and flexible governmental measures conducive to doing business that do not exist elsewhere in the country. This article aims to examine the general concept of free zones, which includes different types of developments ranging from customsbonded warehousesfactories, export processing zones epzs and special economic zones sezs to free ports or comprehensive free trade zones. This paper investigates the role of special economic zones sezs in liberalizing the chinese and indian economies and their impact on economic growth. Special economic zone sez, chinese pinyin jingji tequ or wadegiles romanization chingchi techu, any of several localities in which foreign and domestic trade and investment are conducted without the authorization of the chinese central government in beijing. 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. This book examines the origins, nature and status of special economic zones in asia, together with the current trends connected with them, and the challenges they currently face.
Left out of the picture are inequities in development, arable land loss, real estate speculation and labour violence. Rotterdam after port master planning and zones training course. Fdi is the most stable source of capital for the region compared with more volatile equity, debt and bankrelated flows. The role of chinas overseas special economic zones in. This book is the first to examine the asian experience of sezs in china, india, malaysia and the philippines. A new look at special economic zones in asia article. Sezs are located within a countrys national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. However, rising npl trend, and domestic market saturation, to.
Euro woes wont drag down asian economies, says analyst. This world investment report provides an overview of. The evolution of economic zones in the philippines. Special economic zones sezs or industrial parks can be an effective. A nations prosperity is determined by the productivity of its economy which is. Association of southeast asian nations asean investment. Pakistans special economic zones are hot real estate.
Many developing countries operate spatially confined economic areas in the form of export processing zones, special industrial zones, or free trade zones. The world bank uses the term sez to encompass a variety of types of economic. At the top of the pyramid is the state council leading group for special economic zones and foreign investment. As one example, he described how mexicos maquiladoras dutyfree export processing zones absorbed excess labour supply after the u. 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. I n asia, economies just starting to industrialize have used special economic zones sezs as a way to initiate or expand exportoriented manufacturingand to promote structural change more. Popular special economic zones in asian market economies kindle collection. East asia and pacific, latin america and the caribbean, and europe and central. Export processing zones and special economic zones as. Special economic zones sezs geographically delimited areas within which governments facilitate industrial activity through fiscal and regulatory incentives and infrastructure support are widely used across most developing and many developed economies. One might query whether the analogy is totally apt.