AREC Virtual Seminar Series: Vlad Tarko
Vlad Tarko, from the Department of Political Economy and Moral Sciences at University of Arizona, will present a co-authored working paper.
Abstract: Special Economic Zones (SEZs) have been touted as “tools for development”. China in particular has become the beacon of SEZ success, as the zones have played an important role in the country-wide reform process. However, in many other cases, SEZs have failed. We describe SEZs as a peculiar form of federalism, and we develop a model of political elites’ dynamics to explain under what conditions one can expect SEZs to generate a transition from a rent-seeking society to a liberalized economy. Homogeneous interests among the political elites, and negative economic externalities of SEZs upon other regions make SEZ success less likely.