ASSESSING SPECIAL ECONOMIC ZONES IN CHINA WITH THE MULTI-SIDED PLATFORM MODEL

Download This Article

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

Although many special economic zones (hereinafter SEZs) currently identified themselves as a “platform (often as physical constrictions for zone enterprises),” the academic support is inadequate. This paper offers an introduction to the burgeoning literature on two-sided (or multi-sided) markets and illustrates a feasible analysis on how to adopt this model in designing a well-operated system focusing on the land rentals within a apecial economic zone (SEZ), and provides some theoretical support in this research area. In many industries, platforms match relevant parties, e.g. customers to retailers, advertisers to readers, and facilitate interactions between them. Based on this, the paper tries to design a structure for analysing SEZs, which is considered as an efficient method for economic growth. Key characteristics of these markets, regarding network externalities, fee charging strategies and the relation between platform users are discussed first. Afterwards, the possibility of introducing this model into SEZs land use fee charging policies is examined. Finally, the paper provides some key economic insights on SEZs development under the suggested platform model.

Keywords: Platform Economy, Multi-Sided Platform (MSP), Special Economic Zones (SEZs), Land Policies, Pricing Strategies

Received: 22.01.2017

Accepted: 28.02.2017

How to cite this paper: Yong, W., & Yang, C. (2017). Assessing special economic zones in China with the multi-sided platform model. Journal of Governance and Regulation, 6(1), 78-89. https://doi.org/10.22495/jgr_v6_i1_p7