China’S Policy for Special Economic Zones and its Implications for the Development of Entrepreneurship in the Russian Far East

This studyis aimed at exploring the experience accumulated by China in creation and operation of special economic zones (SEZs) and the potential application of this experience for the development of entrepreneurship in municipalities of the Russian Far East. One ofthe key goals in this process is to identify the type(s) of economic zones that would be optimal for this region. Design/methodology/approach: In our research, we used the historical method to study Chinese experience of creating different types of economic zones. After analysing a variety of sources, we identified the factors underlying the success of Chinese economic zones and thus selected the optimal SEZ types for the Russian Far East. We also conducted a correlation and regression analysis to determine the interconnection between the socio-economic development of municipalities in the Far East and the economic performance of small businesses in these areas. Findings: The Chinese approach to creating SEZs can be effectively applied to establish a customs cooperation area on the Russian-Chinese border in the Jewish Autonomous Region to stimulate the development of this economically depressed territory through international trade and entrepreneurship; to create jobs and, therefore, increase the income of the local population; and to attract highly qualified specialists to the region. Research/practical implications: The results of this research can be used by municipal governments participating in the SEZ experiment in the Jewish Autonomous Region. Originality/value: The author uses methodology to analyze the indicators that show the efficiency of small businesses and individual entrepreneurs in municipalities of the Russian Far East. The municipalities are assessed depending on their performance on each indicator, which reveals their strengths and weaknesses that should be addressed by the regional and federal authorities. The optimal types of economic zones are determined by analyzing the relevant Chinese experience and the Russian legislation.