IDEAS home Printed from https://ideas.repec.org/p/lev/wrkpap/wp_611.html
   My bibliography  Save this paper

Why Has China Succeeded-And Why It Will Continue To Do So

Author

Listed:
  • Jesus Felipe
  • Utsav Kumar
  • Norio Usui
  • Arnelyn Abdon

Abstract

The key factor underlying China’s fast development during the last 50 years is its ability to master and accumulate new and more complex capabilities, reflected in the increase in diversification and sophistication of its export basket. This accumulation was policy induced and not the result of the market, and began before 1979. Despite its many policy mistakes, if China had not proceeded this way, in all likelihood it would be a much poorer country today. During the last 50 years, China has acquired revealed comparative advantage in the export of both labor-intensive products (following its factor abundance) and sophisticated products, although the latter does not indicate that there was leapfrogging. Analysis of China’s current export opportunity set indicates that it is exceptionally well positioned (especially taking into account its income per capita) to continue learning and gaining revealed comparative advantage in the export of more sophisticated products. Given adequate policies, carefully thought-out and implemented reforms, and skillful management of constraints and risks, China has the potential to continue thriving. This does not mean, however, that high growth will continue indefinitely.

Suggested Citation

  • Jesus Felipe & Utsav Kumar & Norio Usui & Arnelyn Abdon, 2010. "Why Has China Succeeded-And Why It Will Continue To Do So," Economics Working Paper Archive wp_611, Levy Economics Institute.
  • Handle: RePEc:lev:wrkpap:wp_611
    as

    Download full text from publisher

    File URL: http://www.levyinstitute.org/pubs/wp_611.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ajit Zacharias & Thomas Masterson & Kijong Kim, 2009. "Distributional Impact of the American Recovery and Reinvestment Act-- A Microsimulation Approach," Economics Working Paper Archive wp_568, Levy Economics Institute.
    2. Timothy J. Bartik, 2004. "Economic Development," Book chapters authored by Upjohn Institute researchers,in: J. Richard Aronson & Eli Schwartz (ed.), Managememnt Policies in Local Government Finance, pages 355-390 W.E. Upjohn Institute for Employment Research.
    3. International Monetary Fund, 2010. "Deconstructing the International Business Cycle; Why does a U.S. sneeze give the rest of the world a cold?," IMF Working Papers 10/239, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Poncet, Sandra & Starosta de Waldemar, Felipe, 2013. "Export Upgrading and Growth: The Prerequisite of Domestic Embeddedness," World Development, Elsevier, vol. 51(C), pages 104-118.
    2. Jesus Felipe, 2010. "Asia and the Global Crisis: Recovery Prospects and the Future," Economics Working Paper Archive wp_619, Levy Economics Institute.
    3. Arnelyn Abdon & Jesus Felipe, 2011. "The Product Space: What Does It Say About the Opportunities for Growth and Structural Transformation of Sub-Saharan Africa?," Economics Working Paper Archive wp_670, Levy Economics Institute.
    4. Badibanga, Thaddee Mutumba & Ulimwengu, John M., 2012. "The Sophistication and Diversification of the African Agricultural Sector: A Product Space Approach," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124498, Agricultural and Applied Economics Association.
    5. Jesus Felipe & Utsav Kumar & Arnelyn Abdon, 2014. "As You Sow So Shall You Reap: From Capabilities to Opportunities," Oxford Development Studies, Taylor & Francis Journals, pages 488-515.
    6. Jesus Felipe & Utsav Kumar & Arnelyn Abdon, 2010. "Exports, Capabilities, and Industrial Policy in India," Economics Working Paper Archive wp_638, Levy Economics Institute.
    7. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development Formations of Co-Inventors During the Dot-com Bubble in the Research Triangle Region," Papers in Evolutionary Economic Geography (PEEG) 1706, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Mar 2017.
    8. Qi Guo & Canfei He, 2015. "Evolution of Production Space and Regional Industrial Structures in China," Papers in Evolutionary Economic Geography (PEEG) 1521, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2015.
    9. Felipe, Jesus & Kumar, Utsav & Abdon, Arnelyn, 2012. "Using capabilities to project growth, 2010–2030," Journal of the Japanese and International Economies, Elsevier, vol. 26(1), pages 153-166.
    10. Jesus Felipe & Utsav Kumar & Arnelyn Abdon, 2010. "Using Capabilities to Project Growth, 2010-30," Economics Working Paper Archive wp_609, Levy Economics Institute.
    11. Sandra Poncet & Felipe Starosta, 2013. "Export upgrading and growth in China: the prerequisite of domestic embeddedness," PSE - G-MOND WORKING PAPERS halshs-00960684, HAL.
    12. Jesus Felipe & Utsav Kumar & Arnelyn Abdon, 2010. "As You Sow So Shall You Reap: From Capabilities to Opportunities," Economics Working Paper Archive wp_613, Levy Economics Institute.
    13. Felipe, Jesus & Kumar, Utsav & Abdon, Arnelyn, 2013. "Exports, capabilities, and industrial policy in India," Journal of Comparative Economics, Elsevier, pages 939-956.
    14. Giorgio Prodi & Federico Frattini & Francesco Nicolli, 2016. "Regional Innovation Systems in China: A long-term perspective based on patent data at the prefectural level," SEEDS Working Papers 0316, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Apr 2016.
    15. Nicola D. Coniglio & Raffaele Lagravinese & Davide Vurchio & Massimo Armenise, 2017. "The pattern of structural change: testing the Product Space framework," Papers in Evolutionary Economic Geography (PEEG) 1708, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Apr 2017.
    16. Jian Gao & Bogang Jun & Alex Sandy Pentland & Tao Zhou & Cesar A. Hidalgo, 2017. "Collective Learning in China's Regional Economic Development," Papers 1703.01369, arXiv.org.

    More about this item

    Keywords

    China; Capabilities; Diversification; Export-led Growth; Leapfrogging; Open Forest; Product Space; Sophistication;

    JEL classification:

    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:lev:wrkpap:wp_611. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Dunn). General contact details of provider: http://www.levyinstitute.org .

    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.

    We have no references for this item. You can help adding them by using 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.