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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

SEZ & Poverty reduction

Yuan YiMing

Deputy Director of CCSEZR

Email:[email protected]


Poverty reduction in china
Poverty reduction in China

Over the past 25 years

China has made remarkable achievement in poverty reduction 



Poverty reduction in china2
Poverty reduction in China

However

poverty reduction progress is uneven !



Sez poverty reduction1
SEZ & Poverty Reduction

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







Immigrants
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

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
Average staff of Gang- take-off has an important contribution to poverty reductionAo-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.



The trend of shen zhen fdi on employment poverty reduction is descending
The trend of poverty reductionShen Zhen FDI on employment - poverty reduction is descending


Sez poverty reduction6
SEZ & Poverty Reduction 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.



Sez poverty reduction7
SEZ & Poverty Reduction 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
Empirical  poverty reductionsupport

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


Empirical support poverty reduction

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


Empirical support1
Empirical  poverty reductionsupport

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


I mplications for africa
I poverty reductionmplications 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.



I mplications for africa1
I the low skill labormplications 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 the low skill labor


I mplications for africa2
I the low skill labormplications for Africa

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


Export oriented economy
Export-oriented economy the low skill labor



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