State-Permeated Capitalism and the Solar PV Industry in China and India

Matthew M. C. Allen, Maria L. Allen, Syed Imran Saqib and Jiajia Liu

New Political Economy, 2021, vol. 26, issue 4, 527-539

Abstract: Much of the existing business and management research on how ‘state capitalism’ influences industry outcomes focuses on the state as 1) the owner of companies, 2) a provider of key resources, such as financial support, to favoured companies and/or 3) a unitary actor. Whilst some of this literature highlights links between politicians and officials, on the one hand, and individual companies, on the other, it downplays how other political-economic factors, such as the relative importance of existing industries in terms of employment and links between state banks and state-owned companies impact developments within those emerging sectors that the state wishes to promote. Drawing on the ‘state-permeated model’ of capitalism, we undertake a comparative institutional analysis of the development of the solar photovoltaic (PV) industry in China and India. Both states prioritised domestic solar PV manufacturing and innovation; however, China’s industry is much stronger than India’s, reflecting, we argue, 1) the greater ability of China’s central state to co-ordinate other actors and 2) the greater importance of India’s coal industry compared to China’s. We discuss the implications of our work for policy makers and for research, highlighting the need to assess whether state-permeated capitalism is functional or dysfunctional in nuanced ways.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/13563467.2020.1807486 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:cnpexx:v:26:y:2021:i:4:p:527-539

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/cnpe20

DOI: 10.1080/13563467.2020.1807486

Access Statistics for this article

New Political Economy is currently edited by Professor Colin Hay

More articles in New Political Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().