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Private Sector Industrialization in China: Evidence from Wenzhou

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Author Info

  • John Strauss
  • Edward Y. Qian
  • Minggao Shen
  • Dong Liu
  • Mehdi Majbouri
  • Qi Sun
  • Qianfan Ying
  • Yi Zhu

Abstract

The purpose of this study to help shed light on the entrepreneurship, entrepreneurs and enterprise growth in Wenzhou. The study is done by relying on a probabilistic firm survey that we carried out in Wenzhou in early 2006 for three industries: shoes, eyeglasses and general equipment. Not a field-based formal survey, but also informal questions which helps us to enrich the story. The survey was focused on getting detailed firm histories to learn about how the firms started and grew. The study was done by focusing on the origins of the firms, including prior firms that may have been antecedents. Information was collected on whom the founders were, how many, their relationships with each other, and their background in terms of experience and other human capital. Detailed information was collected on how they financed their start, and how they financed their expansion. Detailed information on the sources of technology into the firms, particularly whether it was Chinese or imported and whether the firms were getting technical instructions from foreign firms they may have been exporting to. Detailed information on markets, especially how markets and how export markets were found. Information was also collected about explicit assistance that came from governments, local and/or central. Workers at each firm: managers, skilled workers such as designers, and production workers were interviewed.

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:2468.

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Date of creation: Apr 2010
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Handle: RePEc:ess:wpaper:id:2468

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Keywords: industrialization; workers; technology; firms; local resources; pro-capitalist; infrastructure; industrialization; entrepreneurship; entrepreneurs; growth; Wenzhou; china; firm survey; survey; china;

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  1. Liedholm, Carl & Mead, Donald C., 1987. "Small Scale Industries in Developing Countries: Empirical Evidence and Policy Implications," Food Security International Development Papers 54062, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. John Sutton, 2004. "The auto-component supply chain in China and India: a benchmark study," LSE Research Online Documents on Economics 2292, London School of Economics and Political Science, LSE Library.
  3. Pack, Howard & Westphal, Larry E., 1986. "Industrial strategy and technological change : Theory versus reality," Journal of Development Economics, Elsevier, vol. 22(1), pages 87-128, June.
  4. Sonobe, Tetsushi & Kawakami, Momoko & Otsuka, Keijiro, 2003. "Changing Roles of Innovation and Imitation in Industrial Development: The Case of the Machine Tool Industry in Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 52(1), pages 103-28, October.
  5. Sonobe, Tetsushi & Hu, Dinghuan & Otsuka, Keijiro, 2004. "From inferior to superior products: an inquiry into the Wenzhou model of industrial development in China," Journal of Comparative Economics, Elsevier, vol. 32(3), pages 542-563, September.
  6. Ranis, Gustav, 1995. "Another Look at the East Asian Miracle," World Bank Economic Review, World Bank Group, vol. 9(3), pages 509-34, September.
  7. Jianqing Ruan & Xiaobo Zhang, 2009. "Finance and Cluster-Based Industrial Development in China," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 143-164, October.
  8. Hayami, The late Yujiro & Godo, Yoshihisa, 2005. "Development Economics: From the Poverty to the Wealth of Nations," OUP Catalogue, Oxford University Press, edition 3, number 9780199272716, Octomber.
  9. Keijiro Otsuka, 2006. "Cluster-Based Industrial Development: A View From East Asia," The Japanese Economic Review, Japanese Economic Association, vol. 57(3), pages 361-376.
  10. Paulson, Anna L. & Townsend, Robert, 2004. "Entrepreneurship and financial constraints in Thailand," Journal of Corporate Finance, Elsevier, vol. 10(2), pages 229-262, March.
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