China - the New Developmental State? : : An Empirical Analysis of the Automotive Industry.

• Superior document: Hohenheimer volkswirtschaftliche Schriften ; Band 60
• Author: Meier, Nicola, 1977-
• Place / Publishing House: Frankfurt am Main : : Peter Lang GmbH, Internationaler Verlag der Wissenschaften,, 2009.; ©2009.
• Year of Publication: 2009
• Edition: First edition.
• Language: English; German
• Series: Hohenheimer volkswirtschaftliche Schriften ; Band 60.
• Physical Description: 1 online resource (358 pages) :; illustrations, charts; digital, PDF file(s).
• Notes: Originally presented as the author’s doctoral thesis: Hohenheim, 2009.

The central focus of this analysis is whether the economic growth of China can be attributed to an emulation of the development models of Japan, South Korea, and Taiwan. Based on the developmental state theory, an East Asian developmental state model is set up as a benchmark. The thesis uses an empirical analysis of the auto industry to highlight the performance outcome of China’s development strategy. The author confirms that China has evolved into a developmental state similar in its core characteristics to the three leading East Asian states. The model of development in China, however, is an innovative combination of factors from the developmental states, the legacies of the past command economy as well as of the adopted market economy mechanism including international capital flows.

Table of Contents

Cover -- List of figures -- List of tables -- List of tables in the appendix -- List of abbreviations -- 1 Introduction -- 1.1 The context - putting China in perspective -- 1.2 The state of research and aim of the study -- 1.3 Methodology and available sources -- 1.4 Line of action -- 2 The East Asian developmental states -- 2.1 Debate on the beneficial role of the state -- 2.2 The developmental state theory -- 2.2.1 Early recognition of the state's role in industrialization -- 2.2.2 Origin of the East Asian capitalist developmental state theory -- 2.2.3 Different developmental state approaches -- 2.3 The developmental states' institutional and bureaucratic organization -- 2.3.1 Depoliticized elite bureaucracy -- 2.3.2 Cohesiveness and autonomy of the elite bureaucracy -- 2.3.3 The pilot agency -- 2.4 State-led economic growth -- 2.4.1 East Asian industrial policy -- 2.4.2 Trade policy - import substitution and export promotion -- 2.4.3 Foreign capital -- 2.5 Financial system -- 2.6 State-society and government-business relations -- 2.6.1 State-society relations -- 2.6.2 Government-business relations -- 2.6.2.1 Information exchange -- 2.6.2.2 Embedded autonomy -- 2.7 Assessment of the East Asian developmental state approach -- 2.7.1 Subjects unaddressed by the developmental state theory -- 2.7.2 The East Asian Developmental State Model -- 2.7.3 Emulation of the developmental state model by other developing countries? -- 3 A new model of economic development -- 3.1 Applicability of the East Asian Developmental State Model to China -- 3.1.1 Conditions of the Chinese economic development approach -- 3.1.2 Characteristics that distinguish China from the developmental states -- 3.2 Bureaucracy -- 3.2.1 Bureaucratic organizational structure -- 3.2.2 The civil service system -- 3.2.2.1 Depolitization of civil servants?.

3.2.2.2 Meritocratic recruitment -- 3.2.3 A Chinese pilot agency? -- 3.2.3.1 The State Planning Commission and its successors -- 3.2.3.2 Streamlined government structure -- 3.3 State -- 3.3.1 Industrial policy -- 3.3.2 Institutional reforms - drivers of and obstacles to economic growth -- 3.3.2.1 Fiscal federalism -- 3.3.2.2 Collective ownership -- 3.3.2.3 Corruption -- 3.3.2.4 Local protectionism -- 3.3.3 Promotion of selected sectors, companies and projects -- 3.3.3.1 Industrial policy targeting S&amp -- T -- 3.3.3.2 State effort to increase China's R&amp -- D capabilities -- 3.3.4 Foreign participation -- 3.3.4.1 Substantial reliance on FDI -- 3.3.4.2 State guidance of FDI -- 3.3.5 Export-oriented industrialization -- 3.3.5.1 Export promotion and import substitution -- 3.3.5.2 Sectoral targeting of exports -- 3.3.5.3 The central government's devaluation policy to promote exports -- 3.3.5.4 Export-FDI nexus in Special Economic Zones -- 3.4 Financial system -- 3.4.1 Government influence over the financial system -- 3.4.2 Sectoral and firm-level allocation of credit -- 3.4.3 Fragility of the Chinese financial system -- 3.5 Government-business relations -- 3.6 Conclusion -- 4 The auto industry in the light of the Chinese development approach -- 4.1 Design of research -- 4.1.1 Qualitative analysis -- 4.1.1.1 Expert interviews as a method of qualitative research -- 4.1.1.2 Interview partners and questionnaires -- 4.1.1.3 Research design quality -- 4.1.2 Quantitative analysis -- 4.1.2.1 The data sample -- 4.1.2.2 Methodology of the statistical evaluation -- 4.1.3 Shortcomings of the research approach -- 4.2 Bureaucratic framework of the auto industry -- 4.2.1 Bureaucratic institutions shaping the auto sector's development -- 4.2.2 Policy-making and implementation -- 4.3 National auto industrial policy -- 4.3.1 FDIs in the auto sector.

4.3.1.1 Designation of nine auto groups -- 4.3.1.2 Attraction of foreign investors -- 4.3.1.3 Revised policy approach after WTO accession -- 4.3.2 Trade policy for the auto sector -- 4.3.2.1 Import substitution -- 4.3.2.1.1 Infant-industry protection of the auto sector through tariff barriers until 2001 -- 4.3.2.1.2 Reduction of tariff barriers and introduction of non-tariff barriers since 2001 -- 4.3.2.2 Export promotion -- 4.3.3 Localism in the auto industry -- 4.3.3.1 Incentives to boost the development of the auto sector -- 4.3.3.2 Protectionist measures to safeguard local auto companies -- 4.3.3.3 Different development approaches for the auto sector - Beijing and Shanghai -- 4.4 Financial system as an instrument to regulate the auto sector's growth -- 4.5 Government-business cooperation and information sharing in the auto sector -- 4.6 Two decades of state-promotion in the auto sector -- 4.6.1 Achievements -- 4.6.2 Shortcomings -- 4.6.2.1 Fragmentation of the auto market -- 4.6.2.2 Limited market share and technology know-how -- 4.6.2.3 International competitiveness -- 4.7 Conclusion -- 5 Evaluation and lessons from China's model of economic development -- 5.1 China - the new developmental state -- 5.2 Uniqueness of the Chinese development approach -- 5.3 Lessons from China's new model of economic development -- Appendix -- Appendix I: List of experts interviewed in China -- Appendix II: Experts' affiliation -- Appendix III: Topic overview for interviewees -- Appendix IV: Questionnaire for company representatives -- Appendix V: Statistics of the 2001 World Bank survey.