How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Development?

In the past 30 years, China has achieved phenomenal economic growth, an unprecedented development "miracle" in human history. How did China achieve this rapid growth? What have been its key drivers? And, most important, what can be learned from China's success? Policy makers, business people, and scholars all over the world continue to debate these topics, but one thing is clear: the numerous special economic zones and industrial clusters that emerged after the country's reforms are without doubt two important engines of China's remarkable development. The special economic zones and industrial clusters have made crucial contributions to China's economic success. 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. Together with the numerous industrial clusters, the special economic zones have contributed significantly to gross domestic product, employment, exports, and attraction of foreign investment. The special economic zones have also played important roles in bringing new technologies to China and in adopting modern management practices. This study briefly summarizes the development experiences of China's special economic zones and industrial clusters (their formation, success factors, challenges, and possible areas or measures for policy intervention), based on case studies, interviews, field visits, and extensive reviews of the existing literature in an attempt to benefit other developing countries as well as the broader development community.

Bibliographic Details

Main Author:	Zeng, Douglas Zhihua
Language:	English
Published:	2011-03-01
Subjects:	ACCOUNTING, ADMINISTRATIVE CONTROL, ADMINISTRATIVE SYSTEM, BANK LOANS, BUSINESS ACTIVITIES, BUSINESS ACTIVITY, BUSINESS CENTER, BUSINESS CLIMATE, BUSINESS ENVIRONMENT, BUSINESS NEEDS, BUSINESS PLANNING, BUSINESS SECTOR, BUSINESS SERVICES, BUSINESS VALUE, BUSINESSES, BUYERS, CAPITAL CITIES, CAPITAL CONSTRAINTS, CAPITAL INVESTMENT, CAPITAL INVESTMENTS, CHECKS, CITIES, CLIMATE CHANGE, COLLABORATION, COMMUNICATION TECHNOLOGY, COMPARATIVE ADVANTAGE, COMPETITIVE ADVANTAGE, COMPETITIVENESS, COMPUTERS, CONCESSIONARY TAX, CORPORATE TAX RATE, CREDIT POLICIES, CURRENCY, CUSTOMS, CUSTOMS CLEARANCE, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DIRECT INVESTMENTS, DIVISION OF LABOR, DOMESTIC MARKET, DOMESTIC MARKETS, DRIVERS, ECONOMIC ACTIVITIES, ECONOMIC BENEFITS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC LIBERALIZATION, ECONOMIC POLICIES, ECONOMICS, ECONOMIES OF SCALE, ELECTRICITY, EMPIRICAL EVIDENCE, EMPLOYMENT, ENABLING ENVIRONMENT, ENFORCEMENT MECHANISMS, ENGINEERS, ENTREPRENEURIAL CULTURE, ENTRY BARRIERS, ENVIRONMENTAL, ENVIRONMENTAL MANAGEMENT, EQUIPMENT, EXCHANGE RATES, EXPENDITURE, EXPORT GROWTH, EXTERNALITIES, FACTORS OF PRODUCTION, FINANCIAL SUPPORT, FIXED INVESTMENT, FOREIGN BANKS, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN FUNDS, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN TRADE, FORESTRY, FREE TRADE, GLOBAL ECONOMY, GLOBAL MARKET, GLOBAL TRADE, GOVERNMENT INTERVENTION, GOVERNMENT POLICIES, GOVERNMENT REVENUE, GOVERNMENT SUPPORT, GOVERNMENT SUPPORTS, GROSS DOMESTIC PRODUCT, HUMAN RESOURCES, INCOME, INCOME TAX, INDUSTRIAL DEVELOPMENT, INDUSTRIAL ENTERPRISES, INDUSTRIAL EXPANSION, INDUSTRIAL STRUCTURE, INDUSTRY ASSOCIATION, INFORMATION NETWORKS, INFORMATION SERVICES, INNOVATION, INNOVATIONS, INSPECTION, INSURANCE, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERMEDIARY ORGANIZATIONS, INTERMEDIATE GOODS, INTERNATIONAL BANK, INTERNATIONAL COMPETITIVENESS, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INVENTION, JOINT VENTURES, JUDICIAL SYSTEM, KNOWLEDGE ECONOMY, KNOWLEDGE NETWORKS, LABOR FORCE, LABOR MARKET, LABOR MARKETS, LABOR PRODUCTIVITY, LABORERS, LEARNING, LEGAL SYSTEM, LEVEL PLAYING FIELD, LICENSE, LOCAL ECONOMY, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCAL MARKET, LOCAL MARKETS, MANUFACTURING, MARKET ACCESS, MARKET COMPETITION, MARKET CONDITIONS, MARKET ECONOMY, MARKET FAILURE, MARKET FAILURES, MARKET MECHANISM, MARKET PRICES, MARKET SEGMENTS, MARKETING, MATERIAL, MEDIUM ENTERPRISE, MEDIUM ENTERPRISES, MERCHANTS, MINIMUM WAGE, NATURAL RESOURCE, NATURAL RESOURCES, NETWORKS, NEW TECHNOLOGIES, OIL, OPEN ACCESS, OPPORTUNITY COST, PATENTS, PERFORMANCES, PERSONAL COMPUTER, PHYSICAL LOCATION, POLICY ENVIRONMENT, POLICY MAKERS, POLLUTION, PPPS, PRIVATE PARTNERSHIP, PRIVATE PARTNERSHIPS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTORS, PRODUCERS, PRODUCT DEVELOPMENT, PRODUCTION PROCESS, PRODUCTION TECHNOLOGY, PRODUCTIVITY GROWTH, PROPERTY RIGHTS, PUBLIC GOODS, PUBLIC SPENDING, QUALITY STANDARDS, R&D, REGULATORY ENVIRONMENT, REGULATORY SYSTEM, RESULT, RESULTS, SAFETY, SAFETY NET, SATELLITE, SCIENTISTS, SKILLED LABOR, SKILLED WORKERS, SOCIAL CAPITAL, SOCIAL DEVELOPMENT, SOCIAL NETWORKS, SOCIAL SERVICES, STOCK EXCHANGE, SUPPLIERS, SUPPLY CHAINS, SUSTAINABLE DEVELOPMENT, TARGETS, TAX, TAX EXEMPTION, TAX POLICIES, TAX RATE, TAX RATES, TAX REDUCTION, TECHNOLOGICAL DEVELOPMENT, TECHNOLOGY CONSULTING, TECHNOLOGY PARK, TECHNOLOGY SUPPORT, TECHNOLOGY TRANSFER, TELECOM, TELECOM SECTOR, TELECOMMUNICATION, TELECOMMUNICATION SERVICES, TELEPHONE, TELEPHONE LINES, TRADE CREDITS, TRADING, TRANSACTION, TRANSACTION COSTS, TURNOVER, URBAN EMPLOYMENT, USERS, VALUE CHAIN, VALUE CHAINS, WAREHOUSE, WEB, WORLD TRADE,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110301083120 https://hdl.handle.net/10986/3349
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