If the domestic market operates under an inefficient economic structure, then access to foreign markets can lead to long-term benefits. In this paper, we examine the effect of free trade zones (FTZs), a progressive trade liberalization program, on corporate innovation. By using data on Chinese...

Economic development zones are a good example of how the interplay of economic and political decision-makers fosters regional development. Our analysis aims to shed light on dynamics and determinants of this process by studying two state-level economic development zones in central China. These...