Pioneering economic reforms in China's special economic zones: the promotion of foreign investment and technology transfer in Shenzhen

Front Cover
Ashgate, 1999 - Business & Economics - 167 pages
This book examines the performance of China's Special Economic Zones, particularly in attracting foreign investment and promoting technology transfer, through an in-depth case study of the largest zone - Shenzhen. The major theme is that spatial placement and unique planning activities are more important in explaining their performance than is acknowledged in existing literature. The significant growth of foreign investment has been primarily a positive function of proximity to major sources, in physical, economic, cultural and political terms; and has been positively related to the favourable local policy environment. Labour cost differentials and domestic market potential, in contrast to traditional 'neoclassical' investment theory, have only been residual factors. The growth of foreign investment, however, has not led to meaningful technology transfer, primarily because of the low-tech nature of foreign investment and lack of protection for intellectual property rights. The growth of foreign investment also has not been accompanied by substantial net exports and creation of domestic linkages, mainly due to the high import propensity of foreign enterprises and limited domestic supply capabilities.

From inside the book

What people are saying - Write a review

We haven't found any reviews in the usual places.


Conceptual and Policy Context
Proximity to
Local Policy Environment and Labor Costs

6 other sections not shown

Other editions - View all

Common terms and phrases

Bibliographic information