IDEAS home Printed from https://ideas.repec.org/p/awe/wpaper/344.html
   My bibliography  Save this paper

China's Manufacturing Success Lessons for India

Author

Listed:
  • Pravakar Sahoo
  • Abhirup Bhunia

    (Institute of Economic Growth, Delhi)

Abstract

This paper attempts to study the conditions under which China's manufacturing sector thrived in the last few decades. We discuss some distinctive policies (such as in decentralisation, foreign direct investment (FDI), special economic zones (SEZ), and infrastructure development) and stress the importance of a policy framework in China's manufacturing success. It follows that India fell short on a number of aspects, and that there is considerable merit in finding lessons in China's success for India. To add topical relevance, we also discuss the recent policy changes in India to boost manufacturing.

Suggested Citation

  • Pravakar Sahoo & Abhirup Bhunia, 2014. "China's Manufacturing Success Lessons for India," IEG Working Papers 344, Institute of Economic Growth.
    • Handle: RePEc:awe:wpaper:344
    as

    Download full text from publisher

    File URL: https://iegindia.org/upload/publication/Workpap/wp344.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fan, Shenggen & Zhang, Linxiu & Zhang, Xiaobo, 2004. "Reforms, Investment, and Poverty in Rural China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(2), pages 395-421, January.
    2. Ngok, Kinglun, 2008. "The Changes of Chinese Labor Policy and Labor Legislation in the Context of Market Transition," International Labor and Working-Class History, Cambridge University Press, vol. 73(1), pages 45-64, April.
    3. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19, September.
    4. Head, Keith & Ries, John, 1996. "Inter-City Competition for Foreign Investment: Static and Dynamic Effects of China's Incentive Areas," Journal of Urban Economics, Elsevier, vol. 40(1), pages 38-60, July.
    5. Ranjan Ku Dash & Pravakar Sahoo, 2010. "Economic growth in India: the role of physical and social infrastructure," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 13(4), pages 373-385.
    6. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
    7. Yingyi Qian & Barry R. Weingast, 1996. "China's transition to markets: market-preserving federalism, chinese style," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 1(2), pages 149-185.
    8. Kenneth A. Froot & Jeremy C. Stein, 1991. "Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1191-1217.
    9. Arvind Panagariya, 2011. "A Re-examination of the Infant Industry Argument for Protection," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 5(1), pages 7-30, February.
    10. Huang,Yasheng, 1999. "Inflation and Investment Controls in China," Cambridge Books, Cambridge University Press, number 9780521665735.
    11. Ranjan Ku Dash & Pravakar Sahoo, 2010. "Economic growth in India: the role of physical and social infrastructure," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 13(4), pages 373-385.
    12. Cheng, Leonard K. & Kwan, Yum K., 2000. "What are the determinants of the location of foreign direct investment? The Chinese experience," Journal of International Economics, Elsevier, vol. 51(2), pages 379-400, August.
    13. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
    14. Coudert, Virginie & Couharde, Cecile, 2007. "Real equilibrium exchange rate in China is the renminbi undervalued?," Journal of Asian Economics, Elsevier, vol. 18(4), pages 568-594, August.
    15. A. J. Khadaroo & B. Seetanah, 2010. "Transport infrastructure and foreign direct investment," Journal of International Development, John Wiley & Sons, Ltd., vol. 22(1), pages 103-123.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2012. "The Effect of Economic Reform and Industrial Policy in a Panel of Chinese Cities," DEGIT Conference Papers c017_061, DEGIT, Dynamics, Economic Growth, and International Trade.
    2. Huang, Qiuqiong & Rozelle, Scott & Lohmar, Bryan & Huang, Jikun & Wang, Jinxia, 2006. "Irrigation, agricultural performance and poverty reduction in China," Food Policy, Elsevier, vol. 31(1), pages 30-52, February.
    3. Shah, Mumtaz Hussain & Khan, Faisal, 2019. "Telecommunication Infrastructure Development and FDI into Asian Developing Nations," MPRA Paper 107255, University Library of Munich, Germany.
    4. Du, Jane & Deng, Kent, 2016. "To get the prices right for food: a “Gerschenkron state” versus the market in reforming China, 1979–2006," Economic History Working Papers 65369, London School of Economics and Political Science, Department of Economic History.
    5. Simon Alder & Lin Shao & Fabrizio Zilibotti, 2016. "Economic reforms and industrial policy in a panel of Chinese cities," Journal of Economic Growth, Springer, vol. 21(4), pages 305-349, December.
    6. Xiangfei Xin & Fu Qin, 2011. "Decomposition of agricultural labor productivity growth and its regional disparity in China," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(1), pages 92-100, January.
    7. Xin, Xiangfei & Qin, Fu, 2009. "Decomposition of Agricultural Labor Productivity Growth and its Regional Disparity in China," 2009 Conference, August 16-22, 2009, Beijing, China 51047, International Association of Agricultural Economists.
    8. Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2008. "Total factor productivity growth in China's agricultural sector," China Economic Review, Elsevier, vol. 19(4), pages 580-593, December.
    9. Xiangfei Xin & Liu Xiaoyun, 2008. "Regional disparity of factor endowment and agricultural labor productivity in China," Psychometrika, Springer;The Psychometric Society, vol. 3(3), pages 380-409, September.
    10. Hornstein, Abigail S., 2011. "Where a contract is signed determines its value: Chinese provincial variation in utilized vs. contracted FDI flows," Journal of Comparative Economics, Elsevier, vol. 39(1), pages 92-107, March.
    11. Du, Yuxin & Teixeira, Aurora A.C., 2012. "A bibliometric account of Chinese economics research through the lens of the China Economic Review," China Economic Review, Elsevier, vol. 23(4), pages 743-762.
    12. Ebenezer Bugri Anarfo & Abel Mawuko Agoba & Robert Abebreseh, 2017. "Foreign Direct Investment in Ghana: The Role of Infrastructural Development and Natural Resources," African Development Review, African Development Bank, vol. 29(4), pages 575-588, December.
    13. Bruce, John W. & Li, Zongmin, 2009. "“Crossing the river while feeling the rocks”: Incremental land reform and its impact on rural welfare in China," IFPRI discussion papers 926, International Food Policy Research Institute (IFPRI).
    14. Yifu, Justin & Wang, Yan, 2009. "China's Integration with the World: Development as a Process of Learning and Industrial Upgrading," Policy Research Working Paper Series 4799, The World Bank.
    15. Li, Jiatao & Yao, Fiona Kun, 2010. "The role of reference groups in international investment decisions by firms from emerging economies," Journal of International Management, Elsevier, vol. 16(2), pages 143-153, June.
    16. Gong, Binlei, 2020. "Agricultural productivity convergence in China," China Economic Review, Elsevier, vol. 60(C).
    17. Gong, Binlei, 2018. "Agricultural reforms and production in China: Changes in provincial production function and productivity in 1978–2015," Journal of Development Economics, Elsevier, vol. 132(C), pages 18-31.
    18. Owusu Samuel Mensah & Zhuang Jincai & Asare Bediako Isaac & Acheampong Patrick, 2017. "The Role of Institutional Policies in Promoting Agribusiness Development in Rural China," Agriculture and Food Sciences Research, Asian Online Journal Publishing Group, vol. 4(2), pages 37-44.
    19. Kang Yu & Xiangfei Xin & J. Alexander Nuetah & Ping Guo, 2011. "Agricultural growth dynamics and decision mechanism in Chinese provinces: 1988‐2008," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(2), pages 150-170, May.
    20. Xu, Zhun, 2017. "Decollectivization, Collective Legacy, and Uneven Agricultural Development in China," World Development, Elsevier, vol. 98(C), pages 290-299.

    More about this item

    Keywords

    India; China; exports; policy lessons;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:awe:wpaper:344. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/iegggin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.