Special Economic Zones and Human Capital Investment: 30 Years of Evidence from China

Fangwen Lu · Weizeng Sun · Jianfeng Wu

71 citations0/0 files storedAmerican Economic Journal Economic Policy

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Economic Zones and Regional Development China's Socioeconomic Reforms and Governance School Choice and Performance

Abstract

By exploiting the large quantity and rich variety of special economic zones (SEZs) in China, this study investigates how such zones affect human capital investment. Results show that SEZs significantly increase the local high school enrollment rate, but the impact varies across zone types: technology-oriented zones encourage education, while export-led zones discourage it. The increased job opportunities and wage premiums inside SEZs for employees with high school education increase high school enrollment, while such opportunities and wages for employees with middle school education decrease enrollment. A very small portion of the impact, if any, can be attributed to increased income. (JEL I21, I26, J24, J31, O15, P23, R32)

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References

2012The economic impact of Special Economic Zones: Evidence from Chinese municipalities 2015The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms *2014Place-Based Policies 2014People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs 2019Some Causal Effects of an Industrial Policy 2019Place-Based Policies, Creation, and Agglomeration Economies: Evidence from China’s Economic Zone Program 2016Economic reforms and industrial policy in a panel of Chinese cities 2001Regional disparity in China 1985-1994: The effects of globalization and economic liberalization

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