Special Economic Zones (eBook)

Cover 1
Preface 6
Contents 8
Abbreviations 10
Introduction 14
Jürgen Basedow: Boosting the Economy – Special Economic Zones or Nationwide Deregulation? 16
I. Special Economic Zones in Asian Countries 17
1. Survey 17
2. Comparative observations 18
II. Reasons for the Geographical Confinement of Reform Legislation 20
III. Variants of Deregulation in Europe and Germany 22
IV. Market Deregulation – Foundations 24
1. Constitutive and restrictive regulations 24
2. Consequences of (de-)regulation 25
V. Market Deregulation – Implementation in Germany 27
VI. Flexibilization of the Labor Market 30
VII. Conclusion 32
I. Foundations 34
Ren Yatsunami: Historical Perspective on Special Economic Zones in Japan 36
I. Introduction 36
II. The Rise of Special Economic Zones in Japan 37
1. The government’s view on Special Economic Zones in the past 38
a) Policy debates on Special Economic Zones in the late 20?? century 38
b) Special Economic Zones in Okinawa 40
2. Historical analysis 44
a) The “well-balanced land development” principle 44
b) Special Economic Zones as an institution for regional economic gap adjustment 45
III. Special Economic Zones for Stimulating the National Economy 47
1. Special Zones for structural reform 48
a) Proposal through multiple channels 48
b) Legislative history 52
2. Comprehensive Special Zones 53
a) Historical background 53
b) Selection and focus 55
IV. Special Economic Zones in Abenomics 56
1. National strategic Special Zones 57
a) The Takenaka proposal 57
b) Drill to break through the bedrock of vested interests 58
2. Local Abenomics 60
a) Impact of the Masuda Report 60
b) Special Zones for Regional Revitalization 62
V. Conclusion 63
Toshiyuki Kono / Kazuaki Kagami: The Structure and Functions of Special Economic Zones 64
I. Introduction 64
II. Preliminary Discussions 65
1. Definition of SEZ 65
2. Overview of SEZs 66
3. Traditional types of SEZs 67
a) Basic stance of differentiation 67
b) Type I: Expansion of transaction volumes 68
c) Type II: Promotion of manufacturing 68
d) Type III: Hybrid 69
e) Changes to the SEZ’s character 69
4. Contemporary types of SEZs 70
a) SEZs to promote structural reform 70
b) Role of law 70
c) Dilemma 70
5. Two analytical perspectives: macro and micro 71
III. Macro Analysis 71
1. Introduction 71
2. Isolated SEZs 73
a) Development of the isolated SEZs 73
b) Implication for policy 74
3. SEZs and the link to surrounding areas I: Static functions 74
a) Supply of business resources 74
b) Trickle-down effect – spreading from SEZs to its surrounding areas 74
c) Spillover – spreading effects from SEZs to surrounding areas 75
d) Outflow of business resources from surrounding areas 75
e) Diverse conditions for business activities 76
f) Implications for policy making 76
4. SEZs and the link with surrounding areas II: Dynamic functions 76
a) Policy laboratory 76
5. SEZs linked to foreign countries 78
a) Introduction of resources 78
b) Expansion of exportation 80
c) Support of infant industry 81
d) Inter-regional competition 81
6. SEZs linked with foreign and surrounding areas 82
a) Theoretical analysis 82
b) Empirical studies 83
c) Implications for policy 86
IV. SEZs from the Micro Perspective 86
1. Introduction 86
2. SEZ as a system 87
a) System approach 87
b) Elements of SEZs (1): players 87
c) Elements of SEZs (2): environment 87
d) Interrelations among elements in SEZs 88
3. SCP approach 89
a) Introduction to the SCP approach 89
b) Complexity: cyclicality between structure, conduct and performance 90
c) SEZs through the lens of the SCP approach 91
d) Classification of SEZs from the SCP approach 91
4. Marshall’s model of industrial agglomeration 92
a) Marshall’s externality and industrial agglomeration 92
b) Spillover 92
c) Local common resources 94
d) Local labor market for specific skills 95
e) Valid policy measures 95
f) Public choice 96
g) Criticism 96
5. Jacob’s agglomeration model 96
a) Basic concepts and functions 96
b) Three key concepts (1): diversity 97
c) Three key concepts (2): form of contacts 98
d) Three key concepts (3): institutional support 99
e) Conduct and performance 99
f) Public support 100
g) Summary 102
6. Industrial clusters 103
a) Definition and classification 103
b) Governance of the industrial cluster 106
c) Ecosystem 107
d) Public policy 108
7. Self-choice type of industrial agglomerations 109
a) Feature 109
b) Structure, conduct and performance 109
c) Experiment: a new insolvency procedure to attract players? 110
V. Summary and Conclusion 111
Hideaki Shiroyama: Political Dimensions of Science, Technology, and Innovation Policy and the Importance of Local Contexts 112
I. Introduction 112
II. Scope of Science, Technology and Innovation Policies 113
III. Risk Management 114
IV. Institutional Design of Risk Regulation 118
V. Promotion of Knowledge Production 121
VI. Social Introduction of Technology 125
VII. Mechanisms of Comprehensive Decision-Making and Decision Support Methods 127
II. Special Economic Zones and the Legal Environment 130
Tom Ginsburg: Special Economic Zones: A Constitutional Political Economy Perspective 132
I. Introduction 132
II. The Spatial Dimensions of Constitutional Regulation 133
III. Federalism 135
IV. Special Economic Zones as Asymmetric Federalism? 138
V. Mechanisms of Policy Transmission 139
VI. Conclusion 141
Carsten Herresthal: Protection of Freedom of Contract by Private Law after (Local) Deregulation 144
I. Introduction: Private Law as the Residual Legal Order 144
II. Main Functions of Private Law after Measures of Deregulation 146
1. Protection of freedom of contract by private law 146
a) Protection of free market decisions of the market participants 146
(1) Protection against restrictions by the state 147
(2) Protection against restrictions by other market participants 149
b) Protection of the free market 150
(1) Market power 151
(2) Asymmetric information 151
(3) Monopolies 152
c) Protection of competition 152
2. Enabling function of private law 153
3. Partial substitution of public law regulations with private law rules 154
a) Objectives of private law regulation 155
b) The case of private law compensation of market failure 155
III. Private Law Instruments 156
IV. The Enforcement of Private Law Rules 157
V. Special Private Law as an Adequate Means for Special Economic Zones? 158
1. Private law and national objectives 158
2. Experimental aspects within private law 160
3. Utilization of private law 161
4. The law of conflict of laws 163
VI. Summary 164
Wolfgang Wurmnest: Special Economic Zones, Deregulation and Competition Law 166
I. Introduction 166
II. Market Regulation and Competition Law 168
1. Constitutional and special regulation 168
2. Regulation needs justification 168
3. The role of competition law 171
III. Creating Economic Zones (Japan) 173
1. Concept and implementation 173
a) A brief history of Special Economic Zones in Japan 173
b) The economic zones of the Abe administration 174
2. Regulatory competition and regional deregulation 174
a) Effects on competition 174
b) SEZs as useful laboratories 175
c) Possible limitations to ease the effects of distortion 176
3. Summary 177
IV. Deregulation of Monopolistic Markets (Europe) 178
1. Deregulation in Europe 178
2. Complementing the competition rules 178
3. Importance of rigorous enforcement of unilateral conduct rules 179
4. Implications for Japan 181
V. Conclusion 184
III. Areas of Law Affected 186
?aslav Pejovi?: Japanese Labor Law: Hurdles on the Road to Abenomics 188
I. Introduction 188
II. Main Features of the Traditional Employment System 189
1. Long-term employment 189
2. Seniority system 191
3. Labor unions 191
4. Safety of employment 192
III. New Developments 196
1. Changes in the structure of employees 196
2. Changes in the wage and evaluation systems 198
3. Recent trends in dismissal law 199
4. Legal reforms 200
IV. Impact of Abenomics on Employment Policy 202
1. Special Economic Zones 203
2. Promotion of limited regular employment 205
V. Further Directions 207
1. Impact of demographic changes on labor 207
2. Government policy 208
3. Dismissal law may change? 210
4. Back to the future? 212
VI. Conclusion 213
Shinto Teramoto: How Industrial Policy Affects the Nurturing of Innovation – From the Perspective of Intellectual Property Rights 216
I. Laws and Governmental Activity Aimed at the Promotion of Innovation 217
1. Future innovation depends on past innovation 217
2. Future innovations occur at the intersection of past innovations 218
3. How intellectual property rights restrict the transfer of the effects of a past innovation 219
4. Trends emphasizing the role of diversity 221
II. Under what Conditions do IP Rights Promote a Wider and Quicker Diffusion of New Works of Authorship or Inventions Embodied in Products or Services? 223
1. Model 224
a) The basic concepts of the model 224
(1) Implementing the impact of a consumer network in the model 224
(2) Correcting the implicit assumption of limited demand 225
b) Designing a model 226
c) Parameters to assess the results of experiments on Model? 232
2. Discussion using Model? 233
a) Competition between suppliers, both with weak sales capabilities,in a market with limited demand 233
b) Competition between a supplier with stronger sales capabilities and another supplier with weaker sales capabilities in a market with limited demand 237
c) Competition between suppliers, both with strong sales capabilities, in a market with limited demand 241
d) Competition between suppliers, both with weak sales capabilities, in a market with growing demand 243
e) Competition between a supplier with stronger sales capabilities and another supplier with weaker sales capabilities in a market with growing demand 247
f) Competition between suppliers, both with strong sales capabilities, in a market with growing demand 251
3. Suggestions derived from the discussion using Model? 253
4. The viability of Model? 254
a) The advantage of Model? as opposed to conventional market models 254
b) The advantage of the models denoting a market with growing demand 255
III. Under which Conditions do IP Rights Help a New Entrant Supplier in a Market to Overcome its Disadvantage against Existing Suppliers? 256
1. The pros and cons of legal protection of intellectual property – from the perspective of new entrants to a market 256
2. Perspectives for devising a model to estimate the advantage of the respective suppliers in the market 257
3. Eigenvector centrality as an index 259
4. Designing a model 260
5. Examples of models 262
6. Suggestions derived from the experiments using Model? 268
IV. Conclusions and Suggestions for a Governmental Innovation Policy 269
Contributors 272