The success factors of Zhejiang's rise in the reform era.

Abstract

Zhejiang was a backward province at the onset of reform; however, its economy has undergone a fundamental transformation in the reform era. It naturally induces the question that how Zhejiang has achieved remarkable economic growth given the disadvantageous situations it was in at the onset of reform? The study sets out to explain the phenomenal rise of Zhejiang economy in the reform era and the focus of the study is on the success factors of its economic transformation. The paper kicks off by providing background information on Zhejiang's geographic setting, historic past and population features, which have sown the seeds to work to the province's advantage after reform. The second session is used to describe the three decades transformation, explain its development process and analyze its unique development features. The main part of this study is the success factors analysis of Zhejiang's rise between 1978 and 2007. The success factors include: history legacy, supportive local governments, contribution of private economy, pivotal roles of industrial clustering and Yangtze River Delta Economic Zone. The study also covers the challenges and obstacles for further development and Zhejiang's prospect for the near future.