Macro- and Micro-Drivers of Manufacturing Performance of China

Kevin H. Zhang

Chinese Economy, 2015, vol. 48, issue 6, 399-412

Abstract: China seems to emerge as a global industrial player in terms of manufacturing capacity and technology upgrading. Is China really an industrial power or merely a manufacturing giant? If it is truly a significant power, what accounts for China’s manufacturing success? First, we assess China’s manufacturing performance through global comparisons along three dimensions (manufacturing capacity, intensity, and quality). Then we analyze the main structural macro- and micro-drivers of manufacturing development in China, and finally we provide empirical estimations of the drivers. We find that China’s manufacturing success is real, primarily in terms of manufacturing capacity and intensity, but not yet in quality. The main drivers include China’s well-designed developmental strategy and industrial policy, large domestic and foreign investments, and increasingly improved infrastructures.

Date: 2015
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DOI: 10.1080/10971475.2015.1081805

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