Abstract:Culture, attitudes and perceptions have an underappreciated effect on industrial cluster policies particularly in transition economies, where long-established local social norms are confronted with hard-pressed external imperatives. This paper examines the impact of cultural and governmental peculiarities in the Russian context on the development of special economic zones and industrial parks. Based on some stylized facts about the Russian context, in-depth interviews and surveys of the managing companies and … Show more
“…Government’s peculiarities and intervention play an important role in the development of these policy zones [ 50 , 51 , 52 ]. In the Chinese context, the key experiences of SEZs, EPZs, and BZs can best be summarized as gradualism with an experimental approach; a strong commitment; and the active, pragmatic facilitation of the state [ 53 ].…”
Section: Institution Background and Theoretical Hypothesismentioning
Free trade zones (FTZ) are designated areas for promoting trade openness and investment facilitation. In China, FTZs are also regarded as “green areas” in which planning actions and institutional innovations are implemented, and there is a commitment to promoting urban green and healthy development. Given that green total factor productivity (GTFP) is an important measure of a city’s health and green performance, this study exploits the difference-in-differences method to explore the impact of pilot FTZs on urban GTFP in 280 cities in China for the period between 2005 and 2017. The results show that the green areas positively contributed to the growth of GTFP. Moreover, the outcome holds with robustness tests. Statistically, the positive effect emerged in cities during the first three years after introducing the initiative, with the effect disappearing afterward. It also had a strong positive impact in the central and western regions and in large and medium-sized cities, while the influence remained insignificant in the remaining areas in China. Furthermore, the paper also reveals that the promotion of foreign direct investment and industrial structure upgrading are the primary channels through which the positive relationship between pilot FTZs and GTFP is established.
“…Government’s peculiarities and intervention play an important role in the development of these policy zones [ 50 , 51 , 52 ]. In the Chinese context, the key experiences of SEZs, EPZs, and BZs can best be summarized as gradualism with an experimental approach; a strong commitment; and the active, pragmatic facilitation of the state [ 53 ].…”
Section: Institution Background and Theoretical Hypothesismentioning
Free trade zones (FTZ) are designated areas for promoting trade openness and investment facilitation. In China, FTZs are also regarded as “green areas” in which planning actions and institutional innovations are implemented, and there is a commitment to promoting urban green and healthy development. Given that green total factor productivity (GTFP) is an important measure of a city’s health and green performance, this study exploits the difference-in-differences method to explore the impact of pilot FTZs on urban GTFP in 280 cities in China for the period between 2005 and 2017. The results show that the green areas positively contributed to the growth of GTFP. Moreover, the outcome holds with robustness tests. Statistically, the positive effect emerged in cities during the first three years after introducing the initiative, with the effect disappearing afterward. It also had a strong positive impact in the central and western regions and in large and medium-sized cities, while the influence remained insignificant in the remaining areas in China. Furthermore, the paper also reveals that the promotion of foreign direct investment and industrial structure upgrading are the primary channels through which the positive relationship between pilot FTZs and GTFP is established.
“…However, even at present, many idiosyncratic pressures persist, and new ones have arisen since the 2000s, including corporate raiding, power networks and many informal institutions related to the current power structure (Gans-Morse 2013 ; Osipian 2018 ; Ledeneva 2013 ; Viktorov and Abramov 2022 ). Furthermore, an in-depth study of the Russian industrial clusters demonstrates that the idiosyncratic cultural, governmental and attitudinal aspects prevent Russian industries and firms from fully developing and integrating into the global market (Sosnovskikh and Cronin 2021 ).…”
Section: Literature Review and Research Backgroundmentioning
This study examines the impact of institutional shifts on the strategic choices of Russian firms. It proposes and tests hypotheses of how a shift from a weak to a strong institutional context is likely to affect firms’ knowledge accumulation, absorptive capacities and internalisation of operations. Using discriminant analysis, the econometric investigation demonstrates that firms tend to allocate greater resources towards improving their knowledge and absorptive capacity and make more efforts to vertically integrate—in line with improvements in the institutional environment. These investments ensure the survivability and competitiveness of firms in the long term. Furthermore, the study demonstrates that the long-term strategic orientation of firms goes hand in hand with rising resource allocations by the nation-state towards economic development. The findings align with the institutionalist political economy views that institutions are the ultimate overseers that allow the market to operate efficiently, especially in emerging market environments. The paper is also instructive to other developing economies about the need to strengthen their institutional environments, which supports the long-term orientation of firms and has a positive impact on economic development. The analysis does not take into account the impact of sanctions on Russian business and economy, post the annexation of Crimea and the armed conflict with Ukraine. Nor does it consider the impact of COVID-19 on the economy. As such, the study attempts to constitute an untainted comparison of two paths of transition on Russian firms—shock therapy, vis-à-vis, an institutional political economy approach.
“…The Chinese and Singaporean SEZ experiences have fully demonstrated the government's key role in creating an innovation-and business-friendly environment, which enhances the positive effects of SEZ development [16,17,21]. A study on Russian industrial clusters also reveals that the government is crucial in establishing 'an enabling business environment' by 'providing timely funding, building personal relationships among participants and potential investors, and providing political guarantees [22]. From the perspective of the definition of an SEZ, the concept of 'speciality' is fundamental to the very existence of an SEZ.…”
Despite the growing attention on uncontrolled and unprofitable urban sprawling in many African countries, few pragmatic solutions have been raised or effectively implemented. While uncontrolled and unprofitable urban expansions happened primarily due to poor land use management and dysfunctional land market, the cost of land management enforcement and reform is high. This paper suggests that the recently re-emerging special economic zones (SEZs) in Africa could be a practical way of using government intervention to reduce uncontrolled urban expansion and optimize urban land use. By evaluating the spatial impacts of two SEZs on their host cities in Ethiopia and Zambia, this paper demonstrates that SEZs could notably change urban expansion in terms of its speed, direction, and spatial structure. By using SEZs as an experimental area for land policy reform, the government can also effectively unlock a profitable urban development model with the functional primary and secondary land market. However, the diverging results in Ethiopia and Zambia also show that the optimizing effect can be significant only when the government is participatory and can fulfil its public function, including delivering proper planning in advance, lunching land policy reform, and even executing compulsory land acquisition for public interests.
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