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Development Zone, the life cycle of the study

Author: HongYan
Tutor: ZhangZuoMing
School: Fudan University
Course: Political Economics
Keywords: development zone institution design interest game Balance mechanism of cost-gain Institution evolution
CLC: F127.9
Type: PhD thesis
Year: 2006
Downloads: 1125
Quote: 7
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In recent 20years ,China has keeping surprising growth rate, the reform andopen policy bring great power which push economic growth, especially thedevelopment-zone model become regional development strategy under the specialdistrict model effecting. As designed institution, how long wills this model can belive?Some one said that this zone will die in the future when special arrangementbecome homogeneity. Does this model die sooner?Thus the first task is to answer whether development-zone has life cycle and what isthe feature of them in different stage.This article use the term "life cycle "and apply relative theory to researchdevelopment-zone model with the tool of institution analysis.In this paper development-zone’s life means that a evolution process whichexperience institution designation, institution adjusting and arrangement ,frominform institution to form, from part area to all area ,from special arrangement tohomogeneity institution. When the policy gap become smooth the development-zoneaccumulates continues internal self-develop power.Thus, development-zone life cycle is different the cycle of nature things .It isevolution process of an organization and a process of self-renew and growth, it live inthe global working divide and regional competition. Different district come to beingdivision industry cluster.From China experience, people have seen that different stage although it has shorthistory.The first stage is strong institution stage .In this stage institution innovation createinstitution barrier and gap which push development zone growth rapidly .Becauseof geographic connection, investors mostly come from Hongkang , Macao andTaiwan ,and lots of money was invested in the eastern and southtern area.Thesearea become growth plot. Institution innovation began to expand and be copied inbigger area for these strong effecting appeared in short time .This expand trend comefrom government and bottom demand. Interest competition between them and thiscompetition bring new institution arrangement .Therefore; the model effecting andaccumulation acquired from institution gap expand from part to all country. Thedevelopment-zone model enters into weak institution stage.In this stage, extra area institution gap become smooth as the deepening of economicreform and marketing reform, but institution creation do not stop, institutiondifference and institution barrier still exist. Due to self-development capacity isdifferent, development zones appear distinguish. Part of them have accumulatedindustry base and can self develop ,but part of them do not .This can be observed byenterprise go out-in-rate in these zones .If in certain stage such as a fiscalyear, companies which entered in development -zone are more than go outones ,it is said that development zone have great attraction ,on the contrary, it meansthat this area economic competition come down. So, in this stage go out-in -rate cantell us regional constant development capacity.The third stage is after institution stage. Special institution arrangement hasexpanded in all area; technology improvement and market demand boost regionalindustry growth. But development-zone institutionStrength will not die away when it be expand .Institution innovation strength cometo being industry cluster development strength which include learning ability andtechnology creation ability and marketing innovation ability.The second problem is how the special institution evaluated and how the evolutioneffect the development zone locus .In this article the author distinguishesevolution path to interest game and balance of cost - gains .We take the developmentzone as an economic organize which can be revalued by putting-earning model. Thegain from development zone will be shared by the center government, localgovernment, internal enterprise and also include local residents. Because everyone hasits own aim, they begin to compete gains from development zone. On the contrary, thecompetition will change some special institution, such as financial institution, landusage institution and labor flow institution which are key institution.As to the balance mechanism of cost-gain, the author split cost items and gain items, itlooks that the invisible cost is very huge and it will baffle the zone futuredevelopment.Thirdly, Apply the life theory to analyze China development zone .It testify thatinstitution is vital factor to those special development zones which has double effect.The author consider that China development zone have grown from the first stage tothe second stage .Local government should cultivate regional industry ,incubate small scale enterprise and unify the factor market .At the end the author summarize three vital factor which baffle these region development. Those factors are resources restriction, cost restriction and institution restriction. The development zone must conquer that restriction and fulfill self renovation.

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > SAR economy, Economic and Technological Development Zone Economic
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