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The changing roles of free economic zones in development: A comparative analysis of capitalist and socialist cases in East Asia

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Abstract

Free economic zones (FEZs) play important roles in industrialization and economic development of both capitalist and socialist countries in various regions of the world, and thus have become a major subject of study in the development literature. Theoretical debate and empirical analysis have focused narrowly on the positive and negative economic effects of export processing zones (EPZs) in capitalist Third World countries, without giving sufficient consideration to why, when, and how different types of FEZs in both capitalist and socialist economies adapt their roles in achieving development objectives under changing international and domestic conditions. In this article, I systematically compare the dynamic development roles of three FEZs in two different systems—the state capitalist economies of Taiwan and South Korea and the reforming socialist economy of China—during 1966–1990. The comparative findings are interpreted from competing and complementary perspectives of major development theories. Finally, I use the comparative evidence to refine a lifecycle model of the evolution and prospect of EPZs in capitalist newly industrializing countries, and suggest an alternative scenario for FEZs in socialist economies.

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Authors and Affiliations

  1. Department of Sociology (M/C 312), University of Illinois at Chicago, 1007 West Harrison Street, 60607-7140, Chicago, IL

    Xiangming Chen

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  1. Xiangming Chen
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Correspondence to Xiangming Chen.

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Xiangming Chen is assistant professor of sociology at the University of Illinois at Chicago, affiliated with the Center for East Asian Studies at the University of Chicago, and a research fellow at the IC2 Institute at the University of Texas at Austin. His current research focuses on the interface between urban and economic development from a comparative perspective, with a central focus on China. He has recently published several papers on urbanization, urban housing reform, commodity chains, and regional development in China in a number of social science journals and edited books.

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Chen, X. The changing roles of free economic zones in development: A comparative analysis of capitalist and socialist cases in East Asia. Studies in Comparative International Development 29, 3–25 (1994). https://doi.org/10.1007/BF02687146

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