Special economic zones and the opening of the Chinese economy: Some lessons for economic liberalization

This paper studies the implications of special economic zones in China's economic transition, and attempts to draw some policy lessons for economic liberalization in a more general context. Establishing the zones has been the first and most crucial step that China took to reform and open its economy since 1979. The zones' establishment, performance, and impacts on China's transition are examined in addition to related reform efforts and policy issues. It is argued that the zones may serve as a policy means in facilitating trade and financial liberalization, enhancing resource utilization, and promoting economic growth and structural changes. (C) 1999 Elsevier Science Ltd. All rights reserved.