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State Capacity and Leadership: Why Did China Take off?

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  • Haiwen Zhou

Abstract

For a large economy trying to achieve industrialization, it needs to develop indigenous technological capacities to make growth sustainable. Industrialization can be challenging to achieve because it might be difficult to develop technologies without changing culture and political institutions which are useful to maintain ruling. Rulers in ancient China choose institutions to prevent internal rebellions. Industrialization was a new goal for the Qing government in the 19th century, and previous institutions were not designed to handle this issue. China’s high growth rates after 1978 resulted from internal reforms to increase efficiency and external openness to absorb foreign capital, knowledge, and technologies. China’s state capacity and leadership supported developing technological capacities in the catch-up process.

Suggested Citation

  • Haiwen Zhou, 2023. "State Capacity and Leadership: Why Did China Take off?," Chinese Economy, Taylor & Francis Journals, vol. 56(1), pages 50-68, January.
    • Handle: RePEc:mes:chinec:v:56:y:2023:i:1:p:50-68
    DOI: 10.1080/10971475.2022.2058183
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    JEL classification:

    • N95 - Economic History - - Regional and Urban History - - - Asia including Middle East
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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