IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v36y2024i3d10.1057_s41287-024-00640-1.html
   My bibliography  Save this article

Chinese State Capital as a Partner for Resource-Based Structural Transformation? The Belt and Road Initiative and Downstream Linkages in Bolivia and Kazakhstan
[¿El capital estatal chino como socio para la transformación estructural basada en recursos? La Iniciativa de la Franja y la Ruta y los vínculos descendentes en Bolivia y Kazajstán]

Author

Listed:
  • Nicholas Jepson

    (University of Manchester)

  • Oyuna Baldakova

    (King’s College London)

Abstract

Lee argues that outbound Chinese state capital (CSC) is distinct from global private capital in terms of a greater willingness to accommodate recipient country priorities. This article uses the cases of Kazakhstan and Bolivia to explore this claim in relation to state-led efforts to foster structural transformation via upgrading in extractive industries (lithium and iron/steel in Bolivia, and petrochemicals in Kazakhstan). We focus particularly on attempts to move into domestic downstream processing. The article explores variation in the degree of accommodation with local demands on the part of CSC and proposes an explanatory framework for these differences, grounded in three axes. These are (i) mix of BRI drivers motivating a particular project from the Chinese side (export of industrial surplus, political relations with partner states and/or concern for resource security); (ii) nature of state-capital investment partnership (the mix of Chinese institutions and firms involved in negotiating and implementing the deal, as well as the time horizon implied by contract type); and (iii) a range of local contextual factors such as availability of alternative sources of capital, host state industrial capacities and local political conditions. Further research will be needed to refine and test this framework across other sectors and developmental goals beyond upgrading in extractives.

Suggested Citation

  • Nicholas Jepson & Oyuna Baldakova, 2024. "Chinese State Capital as a Partner for Resource-Based Structural Transformation? The Belt and Road Initiative and Downstream Linkages in Bolivia and Kazakhstan [¿El capital estatal chino como socio," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 718-745, June.
    • Handle: RePEc:pal:eurjdr:v:36:y:2024:i:3:d:10.1057_s41287-024-00640-1
    DOI: 10.1057/s41287-024-00640-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-024-00640-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41287-024-00640-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dani Rodrik, 2016. "Premature deindustrialization," Journal of Economic Growth, Springer, vol. 21(1), pages 1-33, March.
    2. Daniela Gabor, 2021. "The Wall Street Consensus," Development and Change, International Institute of Social Studies, vol. 52(3), pages 429-459, May.
    3. Lee Jones & Yizheng Zou, 2017. "Rethinking the Role of State-owned Enterprises in China’s Rise," New Political Economy, Taylor & Francis Journals, vol. 22(6), pages 743-760, November.
    4. Gavin Wright & Jesse Czelusta, 2004. "WHY ECONOMIES SLOW: The Myth of the Resource Curse," Challenge, Taylor & Francis Journals, vol. 47(2), pages 6-38.
    5. Gregory T. Chin & Kevin P. Gallagher, 2019. "Coordinated Credit Spaces: The Globalization of Chinese Development Finance," Development and Change, International Institute of Social Studies, vol. 50(1), pages 245-274, January.
    6. Seth Schindler & Ilias Alami & Nicholas Jepson, 2023. "Goodbye Washington Confusion, hello Wall Street Consensus: contemporary state capitalism and the spatialisation of industrial strategy," New Political Economy, Taylor & Francis Journals, vol. 28(2), pages 223-240, March.
    7. Morris, Mike & Kaplinsky, Raphael & Kaplan, David, 2012. "“One thing leads to another”—Commodities, linkages and industrial development," Resources Policy, Elsevier, vol. 37(4), pages 408-416.
    8. Bräutigam, Deborah & Tang, Xiaoyang, 2014. "“Going Global in Groups”: Structural Transformation and China’s Special Economic Zones Overseas," World Development, Elsevier, vol. 63(C), pages 78-91.
    9. Ricardo Molero Simarro & María José Paz Antolín, 2012. "Development Strategy of the MAS in Bolivia: Characterization and an Early Assessment," Development and Change, International Institute of Social Studies, vol. 43(2), pages 531-556, March.
    10. Ha-Joon Chang & Antonio Andreoni, 2021. "Bringing Production Back into Development: An introduction," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 165-178, April.
    11. Fainshmidt, Stav & Judge, William Q. & Aguilera, Ruth V. & Smith, Adam, 2018. "Varieties of institutional systems: A contextual taxonomy of understudied countries," Journal of World Business, Elsevier, vol. 53(3), pages 307-322.
    12. Atsushi Iimi, 2007. "Escaping from the Resource Curse: Evidence from Botswana and the Rest of the World," IMF Staff Papers, Palgrave Macmillan, vol. 54(4), pages 663-699, November.
    13. Alvin Camba & Guanie Lim & Kevin Gallagher, 2022. "Leading sector and dual economy: how Indonesia and Malaysia mobilised Chinese capital in mineral processing," Third World Quarterly, Taylor & Francis Journals, vol. 43(10), pages 2375-2395, October.
    14. Jonas Meckling & Bo Kong & Tanvi Madan, 2015. "Oil and state capitalism: government-firm coopetition in China and India," Review of International Political Economy, Taylor & Francis Journals, vol. 22(6), pages 1159-1187, December.
    15. Lindsay Whitfield & Cornelia Staritz & Mike Morris, 2020. "Global Value Chains, Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector," Development and Change, International Institute of Social Studies, vol. 51(4), pages 1018-1043, July.
    16. Tristan Kenderdine & Han Ling, 2018. "International Capacity Cooperation—Financing China's Export of Industrial Overcapacity," Global Policy, London School of Economics and Political Science, vol. 9(1), pages 41-52, February.
    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. Linda Calabrese & Rhys Jenkins & Lorena Lombardozzi, 2024. "The Belt and Road Initiative and Dynamics of Structural Transformation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 515-547, June.
    2. Dimitar Anguelov, 2024. "State‐owned Enterprises and the Politics of Financializing Infrastructure Development in Indonesia: De‐risking at the Limit?," Development and Change, International Institute of Social Studies, vol. 55(3), pages 493-529, May.
    3. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.
    4. Xuan Xie & Ke Li & Zhiqiang Liu & Hongshan Ai, 2021. "Curse or blessing: how does natural resource dependence affect city‐level economic development in China?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 413-448, April.
    5. Boire, Sidiki & Nell, Kevin S., 2021. "The enclave hypothesis and Dutch disease effect: A critical appraisal of Mali's gold mining industry," Resources Policy, Elsevier, vol. 74(C).
    6. Christopher Cramer & Jonathan Di John & John Sender, 2022. "Classification and Roundabout Production in High‐value Agriculture: A Fresh Approach to Industrialization," Development and Change, International Institute of Social Studies, vol. 53(3), pages 495-524, May.
    7. Barbier, Edward B., 2016. "Is green growth relevant for poor economies?," Resource and Energy Economics, Elsevier, vol. 45(C), pages 178-191.
    8. Eva Paus & Mike Robinson, 2024. "The Challenge of Productivity-Based Development: Innovation Gaps and Economic Structure in Latin America," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(2), pages 277-305, April.
    9. Yunnan Chen, 2024. "Technology Transfer on the Belt and Road: Pathways for Structural Transformation in Ethiopia’s Standard Gauge Railways," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 668-694, June.
    10. Mignamissi, Dieudonné & Malah Kuete, Yselle Flora, 2021. "Resource rents and happiness on a global perspective: The resource curse revisited," Resources Policy, Elsevier, vol. 71(C).
    11. Ebeling, Francisco, 2022. "Can fossil fuel endowments steer economic development? Evidence from the linkages approach," Resources Policy, Elsevier, vol. 78(C).
    12. Kabinet Kaba & Justin Yifu Lin & Mary‐Françoise Renard, 2022. "Structural change and trade openness in sub‐Saharan African countries," The World Economy, Wiley Blackwell, vol. 45(7), pages 2101-2134, July.
    13. Roberts Simon, 2017. "Working Paper 255 - Competition and industrial policies relating to food production in southern Africa," Working Paper Series 2366, African Development Bank.
    14. Rory Horner, 2022. "Global value chains, import orientation, and the state: South Africa’s pharmaceutical industry," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 68-87, March.
    15. Beatriz Calzada Olvera, 2022. "Innovation in mining: what are the challenges and opportunities along the value chain for Latin American suppliers?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 35(1), pages 35-51, March.
    16. Carlo Pietrobelli & Roberta Rabellotti & Ari Van Assche, 2021. "Making sense of global value chain-oriented policies: The trifecta of tasks, linkages, and firms," Journal of International Business Policy, Palgrave Macmillan, vol. 4(3), pages 327-346, September.
    17. Catherine Locatelli & Mehdi Abbas, 2022. "China-Russia energy interdependence and the hybridization of the governance of international hydrocarbon markets [L'interdépendance énergétique Chine-Russie et l'hybridation des institutions de gou," Post-Print hal-04297005, HAL.
    18. Khadija Straaten & Rajneesh Narula & Elisa Giuliani, 2023. "The multinational enterprise, development, and the inequality of opportunities: A research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(9), pages 1623-1640, December.
    19. Ali Rıza Güngen, 2023. "New Multilateral Development Banks and Green Lending: Approaching Scalar Complexities in the Global South," Development and Change, International Institute of Social Studies, vol. 54(2), pages 251-279, March.
    20. Jan Fagerberg & Bengt-Åke Lundvall & Martin Srholec, 2018. "Global Value Chains, National Innovation Systems and Economic Development," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 533-556, July.

    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:pal:eurjdr:v:36:y:2024:i:3:d:10.1057_s41287-024-00640-1. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.