Special Economic Zone, Thesis Paper Example

The historical development of SEZs and Industrial Cluster

After Chinese revolutionary regimes the late 1970s, various changes corresponding to the engagements emerged. The 30 years that followed, china achieved phenomenon economic growth that Zeng (223) describe as an unprecedented development miracle in human history.  Among these changes were the idealized economic as gifts, special closures, and inventions and innovations. The institutionalization of those reforms marked the start of the rapid development of china’s economy. In 2010, china surpassed Japan and become the second largest economy in the world. There exist a wide range of literature that document how and what fueled the rapid economic growth in china. Despite numerous views, one thing appears to be common; SEZ and industrial clustering that emerged after the reforms were an important engine to the remarkable development of China economy.

Zeng, (229) reviews the historical development of SEZs and Industrial Cluster in china. One of their main findings is that,  the basis of this situation is linked to the best outputs laid down through the hard work in personnel. The enhance moment of these lead to reforms otherwise from the administrative implications that affirmed it to all area to rural and as selectively suited term to serve the professional expectation

According to Lai et al., (292), foreign direct investment became the key focus on the general growth of the Chinese firms and the level of development. The benefits of the economics as noted by Yeung et al (1220), are ideal, and the programs devised in China aimed at diversifying the economic zones and build the clusters that resulted in the current evolved china. The unique identities over time provided the shifts toward the entire end in the centrality of development. The supply and demand, therefore, was of key interest to market share with the eventual output based on the nature of the products, processes these products underwent, technological predisposition abilities as well as the technological shift and involvement that warrants the entire settings. The open door policy perceptively aids the entire engagements that promoted yearly developments attained (Lai et al., 298). This led to emergence of economic zones. According to  Ge (1268), an economic zone is characterized as a geographic area within a territory of a country where economic activity of certain kind are promoted by a set of policy that are generally not applicable to the rest of the country. The entire role of the government was to support, promote anticipatory approaches, values, and the technological abilities predisposed.

The preferential policies and strong government support that incentive Foreign Direct Investment and improve Innovation capacity.

According to Yeung et al, (1220), china needed a dire systemic change after the end of decade debacle of the Cultural Revolution in 1950s. In fact, Deng Xiaping the chief architect of china opened policy opened policy and economic reforms that would outline gradual society changes.  According to Zeng, (103), one of the key policy based engagements that moved Chinese a great deal is the fundamentally unique and the best approach to reforms. Reform policies ideally mandated several activities unleashed eventually. Additionally, Yeung et al, (1222), notes the cluster policy is ideally aiding the long-stated goal to have a unitary devolved system.  Furthermore, Ge (85) writes, the Chinese government promoted the policies that enhanced the reforms and eventually made to the ultimate supports, institutionalizations, engagements, and partnership of the private and the public sectors to affirm the desired goals in the policies made. It increased the variables of the foreign direct investments teaching and learning focused on ideal situations, geographic and specific specializations and the industrial clusters (Ge, 85). In agreement to these views, Wang (140), notes territorial policy guidelines policies expanded the Chinese abilities predisposed in the diversified economic patterns. We can therefore say that employments, increased productivity,  are key to the results ascribed even today by the Chinese government. Foreign direct investments opened the Chinese state, institutions and widened an understanding on the importance of having a well-devised future based relationship. The technology was specifically regulated to have the manners of target ends where the industry, gaps, knowledge, and the comparative scales were favorable, and that deemed fitted the justified ends. Innovativeness too is a key policy guide paradigm with the grouping of the entities based on the productiveness (Zeng, 153).  It assured the certainties, complexities clarifications, research-based ends, and the b motivations to learning processed.  Expansion of cities, innovations, and the centralization ideas shaped politically to have the ramifying feedbacks achieved.

The economic performance of SEZs

According to (Ge, 85), SEZ has greatly influenced the level of the programs that evolved. Some of the benefits includes, a well-motivated workforce that has its right respected. In adition, benefits from incentive and has an ascertained future is likely to expansionary gross domestic products. As foreign direct investment performances increase over time with the greatest expansions in those politically supported ends, the objectives and the being focused on the infrastructure, objective goals, and the shareholding. Programs that served investor, genuine parties, and the abilities to have the end certain and the profits aided are key to be of great pull to investors (Wang, 140).

Political engagement boosts the performance of various employees based on the predisposed favorable working conditions. While the later may end up having poorer engagement due to unemployment and the feelings of negligence. Programs that serve employees motivated to increase performance.

As Yeung et al., 1240 notes, the exports performances are totally based on the quality, quantity, relationship and the terms of the engagement between the trading parties involved about the political affiliations. A program that aids technology and ease the employees operations assures the trust and confidence on the trading parties.

The productivity mandates skeptically vested on the abilities and skills. Labor motivations, the technology involved and the market shares. Programs tied to the production too ideally shapes the entire output where such education, awareness, sensitizations, and the policies that promote diversification (Lai et al., 305).

According to Ge (1267), SEZ played a crucial role in moving the economy of china. Gross domestic products ideally increased depending on the location and the territorial capacities to the ultimate ends were unleashed.  Ge (1268) continues and notes, the impacts of SEZ on the china’s economic development if managed properly are likely to continue to be significant.

Work Cited

Ge, Wei. 1999. “Special Economic Zones and the Opening of the Chinese Economy: Some Lessons for Economic Liberalization.” World Development 27 (7): 1267–85.

Lai, H. C., Y. C. Chiu, and H. D. Leu. 2005. “Innovation Capacity Comparison of China’s Information Technology Industrial Clusters: The Case of Shanghai, Kunshan, Shenzhen and Dongguan.” Technology Analysis & Strategic Management 17 (3): 293–315.

Wang, Jin. “The economic impact of special economic zones: evidence from Chinese municipalities.” Journal of development economics 101 (2013): 133-147.

Yeung, Yue-man, J. Lee, and G. Kee. 2009. “China’s Special Economic Zones at 30.” Eurasian Geography and Economics 50 (2): 222–40.

Zeng, Douglas Zhihua. 2001. “Suzhou Technology Park.” Research note for WBI Development Series. China and the Knowledge Economy: Seizing the 21st Century, Washington, DC: World Bank.