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A GROWTH MODEL FOR CHINA'S SPECIAL ECONOMIC ZONE
Author(s) -
Li Ke,
Whitwell Jan,
Yao Shuntian
Publication year - 2005
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2005.00284.x
Subject(s) - economics , special economic zone , foreign direct investment , china , investment (military) , growth model , macroeconomics , international economics , economic system , monetary economics , political science , politics , law
. 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.