A GROWTH MODEL FOR CHINA'S SPECIAL ECONOMIC ZONE

Ke Li (), Jan Whitwell and Shuntian Yao

Pacific Economic Review, 2005, vol. 10, issue 4, 439-449

Abstract: Abstract. We employ a general macroeconomic analysis to describe the economic growth and performance of the Special Economic Zone (SEZ). It is shown that not only does foreign investment make a significant contribution to the economic growth of the Zone, but also, the rapid response of foreign investment to the output level is important for maintaining steady‐state growth. The open door policy and the policy of encouraging foreign investment have thereby played an important role in the recent development of the Chinese economy.

Date: 2005
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