building engines for growth.pdf

How Do SEZs and Industrial Clusters Drive China’s Rapid Development? 21Figure 1.6 Employment and Foreign Investment in Shenzhen, 1979–20065.01.84.51.6billions of US$4.03.53.02.52.01.51.00.50.019791980198119821983198419851986198719881989foreign investmentFDI199019911992year199319941995199619971998employmentemployment in non–state-owned units199920002001200220032004200520061.41.21.00.80.60.40.20.0millions of workersSource: Shenzhen Statistics Bureau, various years.Figure 1.7 Productivity of Selected Sectors in Shenzhen, 1993–2004output per worker (percent)2.52.01.51.00.501993–981999–2001year2002–04farming, forestry, animal husbandry and fisheriestransportation; postal and communications servicesSource: Author’s calculations based on data from the Shenzhen Statistics Bureau, 1994, 1999, 2002,2005, 2006, 2007.Technology learning, innovation, upgrading, and strong links with thedomestic economy. One of the key strengths of the SEZs is that theyhave a high concentration of very skilled people, including many R&D personnel,especially in the HIDZs and ETDZs. As a result, they have becomecenters of knowledge and technology generation, adaptation, diffusion,