China’s special economic zones: an analysis of policy to reduce regional disparities

Abstract

Regional disparities have existed throughout China's history (Kanbur & Zhang, 2005). Chinese regions consist of geographically proximate provinces with similar economic, topographical and cultural characteristics (Figure 1). The gap between Chinese regions has translated into a substantial divide in income and, to some extent, the standard of living between primarily agricultural areas compared with urban areas (Qian & Smyth, 2008). These urban areas almost exclusively exist in the nation's coastal regions, while the agricultural areas have dominated China's central and western regions (Zhang & Fan, 2004). The disparity that exists between the central and coastal regions can serve as a destabilizing force in the Chinese economy if the gap between these regions becomes too great (Zhao & Tong, 2000). ABSTRACT there is no doubt that major regional disparities exist within china. the gap between its eastern coastal regions compared with the central and western regions has only grown wider over time. china's special economic zones (SeZs) are defined as small geographical areas that allow the integration of free-market principles to attract additional foreign investment. However, the creation and success of SeZs has led to prosperity in the coastal regions of china, creating additional economic disparity between regions. this paper posits that one solution to reduce regional disparities is to extend the influence of the SeZs, or even set up new ones in different areas of the country, to spur investment and close the economic gaps.

Environmental Impacts of Infrastructure Development under the Belt and Road Initiative

“…Communications infrastructure often plays an "invisible" supporting role but can also stimulate certain types of economic activity [105]. Other infrastructure which promotes economic activity, such as Special Economic Zones (SEZs; [105]), can also be very influential in shaping economic activities and interactions [106][107][108]. These interactions and causal relationships can be used to model possible BRI activities and thus their cumulative impacts.…”

The effect of special economic zones on governance performance and their spillover effects in Chinese provinces

“…This imbalance in resources has led to the unequal development of the coastal provinces with regard to infrastructure, technology, and human capital (Démurger, ; Fleisher, Li, & Zhao, ). Coastal provinces owning SEZs enhance social attractiveness and economic environment through improvements in management practices to attract more FDI than that inland provinces (Crane et al, ).…”

“…This imbalance in resources has led to the unequal development of the coastal provinces with regard to infrastructure, technology, and human capital (Démurger, 2001;Fleisher, Li, & Zhao, 2010). Coastal provinces owning SEZs enhance social attractiveness and economic environment through improvements in management practices to attract more FDI than that inland provinces (Crane et al, 2018). Brun et al (2002) report that the positive spillover effect between coastal and non-coastal regions in China is insufficient to ease inequalities among the Chinese provinces in the short term.…”

“…Studies have examined the effects of SEZs on the regions in several aspects such as economic, politics, or environment (Aggarwal, Hoppe, & Walkenhorst, ; Wang, ; Zeng, ). Researchers have utilized regression (Brun et al, ), logical reasoning (Crane, Albrecht, Duffin, & Albrecht, ), difference‐in‐difference econometric estimator (Jensen, ), and structural equation modeling (Ambroziak & Hartwell, ; Wang, ) to explore the benefits of SEZs on regional growth. However, as our reviewing, there is no any empirical studies that have determined the investment and economic efficiencies of SEZs in a unique construct.…”

Regional Integration in the Inter-City Technology Transfer System of the Yangtze River Delta, China

“…Although globalization is often considered as a worldwide phenomenon of regional integration [1], we have to admit that the core-periphery structure of global economy under globalization is becoming more prominent [2][3][4], which means that marginal countries or regions are being more marginalized [5][6][7]. Beginning with the elimination of trade barriers between countries in the same region to achieve economic integration [8], regional integration has been putting emphasis on promoting the economic development of developing and underdeveloped regions [9][10][11][12], and narrowing the gap of internal development within a country [13,14], especially in China [15][16][17][18].…”