EconPapers    
Economics at your fingertips  
 

Industrialization in China

Loren Brandt (), Debin Ma () and Thomas Rawski
Additional contact information
Debin Ma: London School of Economics

No 10096, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We see industrialization in China the last 150 years as an ongoing process through which firms acquired and deepened manufacturing capabilities. Two factors have been consistently important to this process: openness to the international economy and domestic market liberalization. Openness and market liberalization are usually complementary: One without the other can seriously limit benefits. For a latecomer like China, modern industry initially finds its most success in more labor-intensive products that require only modest capabilities. Gradual upgrading entails the shift into more skilled-labor and capital-intensive products and processes. China's experience shows that government can both support and obstruct this process. Our review of long-term data shows that i) China's industrial growth rate has consistently exceeded that of Japan, India and Russia/USSR not just in recent decades but throughout most of the 20th century; ii) China's shift from textiles and other light industry toward defense-related industries began before rather than after 1949, as did the geographic spread of industry beyond the initial centers in the Lower Yangzi and the Northeast (formerly Manchuria) regions; iii) the state sector has consistently been a brake on industrial upgrading, highlighting the significance of current reform initiatives in determining China's future industrial path.

Keywords: China; industrial development; structural change (search for similar items in EconPapers)
JEL-codes: N O (search for similar items in EconPapers)
Pages: 39 pages
Date: 2016-07
New Economics Papers: this item is included in nep-cna, nep-cse, nep-his and nep-tra
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://ftp.iza.org/dp10096.pdf (application/pdf)

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:iza:izadps:dp10096

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2021-10-11
Handle: RePEc:iza:izadps:dp10096