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Manufacturing and Growth in China: Which Facts, Which Model and Which Problems?

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  • Federico Frattini
  • Giorgio Prodi

Abstract

Since 1978 industrial development has been the most important engine of the economicgrowth in China and it has been mainly powered by a process of fast capital accumulation andsupported by intensive and extensive industrial policies. This paper is organised in three mainsections. Firstly, we briefly describe some evident facts in the Chinese development dynamics,focusing on trends in gdp growth, investments and savings. Secondly, we describe how industrialpolicies developed during three periods of economic reforms, stressing the internationalintegration and globalization of the whole Chinese economy, the processes of institutionalbuilding and, particularly, the State Owned Enterprises' transition to market economy. Finally,we underline some critical aspects for the future of China development related more to socialand political matters, such as further institutional learning, a market-sustainable relationshipbetween the private and public sectors, and the consumers' familiarity with the market.

Suggested Citation

  • Federico Frattini & Giorgio Prodi, 2013. "Manufacturing and Growth in China: Which Facts, Which Model and Which Problems?," L'industria, Società editrice il Mulino, issue 3, pages 491-510.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/74605:y:2013:i:3:p:491-510
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