The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing
AbstractSince 1960, only one new country, Brazil, has succeeded in delivering more than one civil jet per month. Otherwise, all the countries now offering world-class planes were established in aviation by the end of World War I. This being said, low-cost producers within several of the newly emerging markets have already acquired front-end manufacturing expertise as a direct result of industrial offset contracts and/or other forms of technology transfer. In all such cases, government intervention, notably through state ownership, has been predominant, but failures have been numerous in view of the difficulty of aligning ownership structure to financial, managerial, and technological requirements and of garnering the support of domestic interest groups. In this paper the focus is China’s efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, as China strives to bear the ARJ-21 project to execution and even considers entering the market for wide-bodies, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest – especially when compared to the shipbuilding industry – and better coordination in the overall industry comes a distant fourth in the explanations’ peaking order.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number wp779.
Date of creation: 01 Jul 2005
Date of revision:
Contact details of provider:
Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109
Phone: 734 763-5020
Fax: 734 763 5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
Other versions of this item:
- Andrea Goldstein, 2006. "The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(3), pages 259-273.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
- O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-03 (All new papers)
- NEP-CNA-2006-06-03 (China)
- NEP-HIS-2006-06-03 (Business, Economic & Financial History)
- NEP-SEA-2006-06-03 (South East Asia)
- NEP-TRA-2006-06-03 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lawrence J. Lau & Yingyi Qian & Gerald Roland, 1997.
"Reform Without Losers: An Interpretation of China's Dual-Track Approach to Transition,"
William Davidson Institute Working Papers Series
137, William Davidson Institute at the University of Michigan.
- Lawrence J. Lau & Yingyi Qian & Gerard Roland, 2000. "Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 120-143, February.
- Lawrence J. Lau & Yingyi Qian & Gerard Roland, . "Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition," Working Papers 99010, Stanford University, Department of Economics.
- Lawrence J. Lau & Yingyi Qian & Gerard Roland, 1997. "Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition," Working Papers 97048, Stanford University, Department of Economics.
- Lau, Lawrence J & Qian, Yingyi & Roland, Gérard, 1998. "Reform Without Losers: An Interpretation of China's Dual-Track Approach to Transition," CEPR Discussion Papers 1798, C.E.P.R. Discussion Papers.
- Nolan, Peter & Zhang, Jin, 2003. "Globalization Challenge for Large Firms from Developing Countries:: China's Oil and Aerospace Industries," European Management Journal, Elsevier, vol. 21(3), pages 285-299, June.
- Andrea Goldstein, 2002. "The political economy of high-tech industries in developing countries: aerospace in Brazil, Indonesia and South Africa," Cambridge Journal of Economics, Oxford University Press, vol. 26(4), pages 521-538, July.
- Holz, Carsten A., 2011. "The unbalanced growth hypothesis and the role of the state: The case of China's state-owned enterprises," Journal of Development Economics, Elsevier, vol. 96(2), pages 220-238, November.
- Rock, Michael T. & Toman, Michael & Cui, Yuanshang & Jiang, Kejun & Song, Yun & Wang, Yanjia, 2013. "Technological learning, energy efficiency, and CO2 emissions in China's energy intensive industries," Policy Research Working Paper Series 6492, The World Bank.
- Vertesy, Daniel & Szirmai, Adam, 2010.
"Interrupted innovation: Innovation system dynamics in latecomer aerospace industries,"
UNU-MERIT Working Paper Series
059, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- Vertesy, Daniel & Szirmai, Adam, 2010. "Interrupted innovation: Innovation system dynamics in latecomer aerospace industries," MERIT Working Papers 059, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron).
If references are entirely missing, you can add them using this form.