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SEZ & Poverty reduction. Yuan YiMing Deputy Director of CCSEZR E mail: 1033936970@qq.com. 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 Yuan YiMing Deputy Director of CCSEZR Email:1033936970@qq.com
Poverty reduction in China Over the past 25 years China has made remarkable achievement in poverty reduction
Poverty reduction in China However poverty reduction progress is uneven !
SEZ & Poverty Reduction • FDI was an important driving force for poverty reduction and employment promotion in SEZs
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.
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
Implications for Africa • Export-oriented economic take-off path is effective to poverty reduction