Science And Technology Policies, Industrial Reform And Technical Progress In China. Can Socialist Property Rights Be Compatible With Technological Catching Up?
This paper analyses the quest for technological progress in China, a large, semi-industrialized, socialist developing country. In the introduction, it is argued that international income convergence is not an automatic product of market forces. Therefore, the path of technological progress in a less advanced country is dependent on its bsorptive capacity, which can be enhanced by the development of an effective national innovation system. The specific meaning attached to key terms such as technological progress, market-compatibility and “socialism” are also explained. Section II briefly illustrates the relative position of China in the international division of labour, as well as some basic economic and social indicators. Section III contends that the huge amount of FDI flowing to China is not per se a major source of technical progress, but important gains can be obtained t h r o u g h strategic bargaining with large transnational corporations from industrialized countries. Section IV sketches the main lines of evolution of Chinese technological culture since the inception of the reforms and provides basic data on China’s R&D system. Section V analyses the new focus of innovation and research policies and describes the major science and technology programmes. Section VI shifts the analysis to the level of industrial enterprises, arguing that a kind of symbiosis exists among the two groups of public firms. Collective enterprises reali ze their comparative advantage specializing in simpler industrial activities and benefit from technological spillovers from state-owned enterprises, while the latter are undergoing a process of upgrading and rationalization in order to gain a strong position at the upper end of the technological spectrum. This section also presents and illustrates aggregate data on production and employment trends in China’s industry and proposes a tentative estimate of the technical change component of labour productivity growth in state-owned enterprises, showing that it has been substantial and increased in the late 1990s. Section VII concludes that China’s experience so far shows that a radical improvement in a socialist economy’s ability to achieve technical progress is not inconsistent with the reaffirmation, in a new and diversified form, of a fundamentally public framework of property relations.
|Date of creation:||2001|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +41 22 907 12 34
Fax: +41 22 907 00 43
Web page: http://www.unctad.org/Templates/Page.asp?intItemID=2101&lang=1
More information through EDIRC
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.:
- Sala-i-martin, X. & Barro, R.J., 1995.
"technological Diffusion, Convergence and Growth,"
735, Yale - Economic Growth Center.
- Robert J. Barro & Xavier Sala-i-Martin, 1995. "Technological diffusion, convergence and growth," Economics Working Papers 116, Department of Economics and Business, Universitat Pompeu Fabra.
- Barro, Robert J. & Sala-i-Martin, Xavier, 1995. "Technological Diffusion, Convergence and Growth," CEPR Discussion Papers 1255, C.E.P.R. Discussion Papers.
- Robert J. Barro & Xavier Sala-i-Martin, 1995. "Technological Diffusion, Convergence, and Growth," NBER Working Papers 5151, National Bureau of Economic Research, Inc.
- Jesus Felipe, 1999. "Total factor productivity growth in East Asia: A critical survey," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 1-41.
- Nolan, Peter & Xiaoqiang, Wang, 1999. "Beyond privatization: Institutional innovation and growth in China's large state-owned enterprises," World Development, Elsevier, vol. 27(1), pages 169-200, January.
- Li, David D., 1996. "A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector," Journal of Comparative Economics, Elsevier, vol. 23(1), pages 1-19, August.
- Jefferson, Gary H & Rawski, Thomas G & Yuxin, Zheng, 1992. "Growth, Efficiency, and Convergence in China's State and Collective Industry," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 239-66, January.
- David D. Li, 1996. "A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector," William Davidson Institute Working Papers Series 8, William Davidson Institute at the University of Michigan.
- Feenstra, R.C., 1990.
"Trade And Uneven Growth,"
353, California Davis - Institute of Governmental Affairs.
- Wan, Guang H., 1995. "Technical Change in Chinese State Industry: A New Approach," Journal of Comparative Economics, Elsevier, vol. 21(3), pages 308-325, December.
- Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
- Woo Wing Thye & Hai Wen & Jin Yibiao & Fan Gang, 1994. "How Successful Has Chinese Enterprise Reform Been? Pitfalls in Opposite Biases and Focus," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 410-437, June.
- Frank R. Lichtenberg, 1992. "R&D Investment and International Productivity Differences," NBER Working Papers 4161, National Bureau of Economic Research, Inc.
- Stephen Young & Ping Lan, 1997. "Technology Transfer to China through Foreign Direct Investment," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 669-679.
- Nolan, Peter, 1996. "Large Firms and Industrial Reform in Former Planned Economies: The Case of China," Cambridge Journal of Economics, Oxford University Press, vol. 20(1), pages 1-29, January.
- Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
- Chow, Gregory C, 1993.
"Capital Formation and Economic Growth in China,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 809-42, August.
- Jefferson, Gary H. & Rawski, Thomas G. & Zheng, Yuxin, 1996. "Chinese Industrial Productivity: Trends, Measurement Issues, and Recent Developments," Journal of Comparative Economics, Elsevier, vol. 23(2), pages 146-180, October.
- Huang, Jikun & Rozelle, Scott, 1996. "Technological change: Rediscovering the engine of productivity growth in China's rural economy," Journal of Development Economics, Elsevier, vol. 49(2), pages 337-369, May.
- Lo, Dic, 1999. "Reappraising the Performance of China's State-Owned Industrial Enterprises, 1980-96," Cambridge Journal of Economics, Oxford University Press, vol. 23(6), pages 693-718, November.
- Naughton Barry, 1994. "What Is Distinctive about China's Economic Transition? State Enterprise Reform and Overall System Transformation," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 470-490, June.
- Gao, Shanwen & Yao, Yang, 1999. "Implementation of socially optimal outcomes in the liquidation of public enterprises in China," China Economic Review, Elsevier, vol. 10(1), pages 41-58.
- Keller, Wolfgang, 1996. "Absorptive capacity: On the creation and acquisition of technology in development," Journal of Development Economics, Elsevier, vol. 49(1), pages 199-227, April.
- Xu, Xiaonian & Wang, Yan, 1999. "Ownership structure and corporate governance in Chinese stock companies," China Economic Review, Elsevier, vol. 10(1), pages 75-98.
- Jefferson, Gary H. & Rawski, Thomas G. & Zheng, Yuxin, 1994. "Productivity change in chinese industry: A comment," China Economic Review, Elsevier, vol. 5(2), pages 235-241.
- Murakami Naoki & Liu Deqiang & Otsuka Keijiro, 1994. "Technical and Allocative Efficiency among Socialist Enterprises: The Case of the Garment Industry in China," Journal of Comparative Economics, Elsevier, vol. 19(3), pages 410-433, December.
- Chen, Hongyi & Rozelle, Scott, 1999. "Leaders, managers, and the organization of township and village enterprises in China," Journal of Development Economics, Elsevier, vol. 60(2), pages 529-557, December.
- Murakami, Naoki & Liu, Deqiang & Otsuka, Keijiro, 1996. "Market Reform, Division of Labor, and Increasing Advantage of Small-Scale Enterprises: The Case of the Machine Tool Industry in China," Journal of Comparative Economics, Elsevier, vol. 23(3), pages 256-277, December.
- W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
- Nelson, Richard R & Pack, Howard, 1999.
"The Asian Miracle and Modern Growth Theory,"
Royal Economic Society, vol. 109(457), pages 416-36, July.
- Jefferson, Gary H, 1998. "China's State Enterprises: Public Goods, Externalities, and Coase," American Economic Review, American Economic Association, vol. 88(2), pages 428-32, May.
- Rodriguez-Clare, Andres, 1996. "The division of labor and economic development," Journal of Development Economics, Elsevier, vol. 49(1), pages 3-32, April.
When requesting a correction, please mention this item's handle: RePEc:unc:dispap:155. 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: (Joerg Mayer)
If references are entirely missing, you can add them using this form.