Written by Thomas Farole, Translated by Xu Junping, Profread by Li Yingcheng

Keywords： Special Economic Zones; Industrialization; Globalization; Industry-City Integration

Abstract：

As a policy instrument, special economic zones (SEZs) have played significant roles in global economic growth and transformation over the last fifty years. This paper first compares SEZs in different institutional contexts including their definitions, objectives and forms as well as the different ways in which SEZs have been used as a policy instrument. Then, this paper reviews the evolution of SEZs during the global industrialization process and points out that current changes in trade and technology may herald the end of the effectiveness of traditional zone models. The paper concludes with the challenges that SEZs are facing or will face, including the compliance and upgrading of SEZs, integrating with domestic supply chains, integrating services with manufacturing and integrating SEZs with cities.

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