Computer File
Industrialization and the special economic zones of the people's Republic of China
The People's Republic of China has been praised as the world's leading manufacturer
and the fastest, yet the biggest growing economy in the contemporary world, rivaling
the United States. In this research, the author provides a sequential elaboration of the
driving factor behind China's economic revolution which allowed for tremendous and
swift industrial advancement, and the progress of the primary, secondary, and tertiary
sectors of industry in China along with their linkage with three SEZs in China :
Guangzhou Development District, Shenzhen Special Economic Zone, and Shanghai
Free Trade Zone.
In order to produce a comprehensive research, the author utilized several theories and
concepts in order to understand the SEZs and its link to China's industrialization. First,
the theorem developed by Deng Xiaoping is used to explain the ability of China, as a
communist state, to incorporate a product of the free market into its economic system,
thus explaining the existence of the SEZs in China. The economic theory of
developmental state is assigned to further explain the position of the government during
and after the 1978 reform, in which it took full control over the economy in order to
achieve desired outcome of growth. W. W. Rostow's theory of the stages of economic
development is used to explain and at the same time, indicator of the progress of
China's industrialization over the course of the years since 1978 reform. The theory is
further utilized to draw out the sync between the types of SEZs and the level of
industrialization in China.
The research concludes that the types of SEZs in China are in line with the third, fourth
and the fifth stage of Rostow's model; GDD focuses on secondary sector production
reflecting the third stage, Shenzhen SEZ excels in high-technology production as stated
in the third stage, and Shanghai FTZ bolsters service sector as the telltale sign of the
final stage of Rostow's model. The existence of SEZs has allowed China to perform
economic growth miracle, from a country dominated traditional society into a
technologically developed and advanced powerhouse with strong manufacturing
industry and growing service sector, all in around three decades after the establishment
of the very first SEZs in 1978.
Keywords : Special Economic Zones, developmental state, industrialization, socialist market economy.
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