Sez poverty reduction
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SEZ & Poverty reduction. Yuan YiMing Deputy Director of CCSEZR E mail: [email protected] Poverty reduction in China. Over the past 25 years China has made remarkable achievement in poverty reduction . Poverty reduction in China. Poverty reduction in China.

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SEZ & Poverty reduction

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SEZ & Poverty reduction

Yuan YiMing

Deputy Director of CCSEZR

Email:[email protected]


Poverty reduction in China

Over the past 25 years

China has made remarkable achievement in poverty reduction 


Poverty reduction in China


Poverty reduction in China

However

poverty reduction progress is uneven !


Poverty reduction in China


SEZ & Poverty Reduction

  • FDI was an important driving force for poverty reduction and employment promotion in SEZs


SEZ & Poverty Reduction


SEZ & Poverty Reduction


SEZ & Poverty Reduction


SEZ & Poverty Reduction


30 across provinces migration flows


immigrants

FDI in SEZ has provide many opportunities for immigrants


Poverty reduction mechanism of FDI and employment effects of the poor are different in each stage


  • Non-FDI foreign investment in the early stage of economic take-off has an important contribution to poverty reduction


Non-FDI foreign investment in the early stage of economic take-off has an important contribution to poverty reduction

The proportion of “Three-plus-one” trading-mix income on the total (sample survey in baoan district)


Average staff of Gang-Ao-Tai &foreign enterprises average staff


Stable primary processing industry rather than the premature capital-intensive and tech-intensive industry can give full play to the foreign capital’s poverty reduction.


Export-oriented economic take-off path is effective to poverty reduction


The trend of Shen Zhen FDI on employment - poverty reduction is descending


SEZ & Poverty Reduction

  • The direct employment effect of FDI on the low-skilled workers weakened, while the technological substitution effect of FDI increased, as a result, the total poverty reduction effects declined.


Capital & technology -intensive


SEZ & Poverty Reduction

  • FDI’s impact on employment promotion and poverty reduction experienced transformation from direct industrial demand to indirect effects, and its poverty reduction effect gradually weakened.


Empirical support

Non-FDI played an important role in creating employment opportunities for low-skilled workers in the initial period of economic development.


Empirical support

The relationship between FDI and the low-skilled worker’s employment are significantly positive correlated


Empirical support

FDI and foreign processing export trade were important factors of employment promotion and poverty reduction


Implications for Africa

  • Government should encourage foreign investment in the form of processing trade form rather than FDI during the economic take-off time, so as to provide more employment opportunities for the low skill labor.


Processing trade provide more employment opportunities for the low skill labor


Implications for Africa

  • Stable primary processing industry rather than the premature capital-intensive and tech-intensive industry can give full play to the foreign capital’s poverty reduction


VS


Implications for Africa

  • Export-oriented economic take-off path is effective to poverty reduction


Export-oriented economy


  • Thank you !


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