be p rem a tu re . As pointed ou t by stud e nts of export processing zones such as Frobel, Heinrichs, Kreye (1977), and Samuelsson (1982), the large-scale of im portation of m odern e quipm ent does not necessarily imply a shift to advanced industrial production. Very often, the operation of the equipm ent or machines in the zones does not involve any technology. This seems to be the case for Shenzhen. As illustrated by Table 4.10, only 3 per cent of m a n u fa ctu rin g production used advanced technology in 1983, and only 5 per cent in 1984. In oth er words, industrial production by 1984 was predom inantly labour-intensive.
T a b le 4-22: Industrial Performance of Shenzhen, 1979-1984
I t e m s P l a n n e d f o r 1 9 8 5 A c h i e v e d b y 1 9 8 4 P e r f o r m a n c e A n n u a l g r o w t h r a t e 8 8 % 1 0 0 % F u l f i l l e d E m p l o y m e n t 5 0 , 0 0 0 5 0 , 0 0 0 F u l f i l l e d N u m b e r of e n t e r p r i s e s 2 0 0 3 7 4 F u l f i l l e d L a b o u r p r o d u c t i v i t y p e r w o r k e r p e r y e a r - R m b 2 8 , 0 0 0 - D e s t i n a t i o n E x p o r t 2 0 % e x p o r t e d U n f u l f i l l e d T e c h n o l o g i c a l l e v e l H i g h L o w U n f u l f i l l e d
A s um m ary of key economic indicators for Shenzhen between 1979 and 1984 shows t h a t its industrial performance has been mixed (Table 4.22). Planned targ e ts for the g ro w th rates of m anufactu rin g , em ploym ent, num ber of enterprises and possible labour p ro d u ctiv ity have been met. In c o n tra s t, the de stination of products and technological levels have not been fulfilled. Although rapid industrial developm ent has occurred in Shenzhen it has not been in the direction desired and designed by planners. In con trast to th e industrial sector, th e performance of the non-industrial sectors - agriculture, comm erce and to urism - can only be briefly assessed as few sta tistic s are available (real e s ta te is o m itte d as figures are absent or unreliable).
N o n - in d u s t r ia l s e c t o r s . The agricultural sector achieved an average growth ra te of 16 per cent between 1980 and 1984; this was more th a n double the planned targ et of 7 per cent (Table 4.23). This was outstripped by the average growth rates for comm erce and construction which were 72 per cent and 57 per cent respectively. Since
plann ed targ e ts for commerce and construction are not published, it is impossible to gauge their performance. Relatively, commerce has grown su bstantially both in term s of th e retailing network and em ploym ent. Com mercial o utlets had increased from 102 to 5,050 between 1979 and 1984 (including 1,191 re s ta u ra n ts , hostels and hotels). The com m ercial workforce has increased alm ost fivefold between 1978 and 1984 - c o n stitu ting a m a jo r source of e m ploym ent (Zhang, 1984; S h e n zh e n Special E c o n o m ic Zone Yearbook 1985A22).
T a b le 4-2 3: Annual G ro w th Rates of M ajor Economic Sectors in Shenzhen, 1980-1984 Year Industry Per cent Agriculture Per cent Retailing Per cent 1980 114.0 7.0 62.0 1981 88.0 6.0 70.0 1982 49.0 25.0 59.0 1983 99.0 10.0 126.0 1984 150.0 31.0 44.0 Average 100.0 15.8 72.2
Source: See T able 4.15.
In 1983, the to u rist sector received 500,000 tourists, of which 140,000 came from overseas - an 18 per cent increase over the previous year. As there were 140,000 tourists
i 9 . .
from overseas in 1983, the planned ta rg e t was exceeded by 19,000, resulting in a net profit of R m b 4 ,5 7 0 ,0 0 0 ^ (W ang, 1984; S h e n zh e n Special Zone D a ily, 20 November 1984). T he targ e t was exceeded again in 1984 when 1,500,000 tourists were recorded, pro du cing a net profit of Rm b 30,000,000. It is impossible, however, to calculate the net profit per individual overseas tou rist since profits have not been differentiated for local and foreign visitors. F u rth e r, the sources of tou rists in 1984 have not been classified. If to ta l net profit is divided by the to tal num ber of tourists, the net profit per individual was a ro u n d HK$30 in 1983, and aro u nd HK$65 in 1984. Although these figures were lower th a n the an tic ip a ted profit rates of HKS60.5 for 1983 and HKS66.6 for 1984, the
13. Calculated from the expected 10 per cent annual increment from the base figure of 100,000