Hostname: page-component-586b7cd67f-2brh9 Total loading time: 0 Render date: 2024-11-26T04:08:14.576Z Has data issue: false hasContentIssue false

Domestic Flying Geese: Industrial Transfer and Delayed Policy Diffusion in China

Published online by Cambridge University Press:  12 April 2018

Yuen Yuen Ang*
Affiliation:
University of Michigan, Ann Arbor. Email: [email protected].

Abstract

This study illuminates the important yet under-studied phenomenon of industrial transfer in China: the migration of capital and investment from wealthy coastal areas into poorer central and western provinces, beginning in the 2000s. By 2015, the value of domestic investment in five central provinces alone was 2.5 times that of foreign investment throughout China. Compared to the original “flying geese” model of tiered production in Asia, China's experience is distinct in three ways: (1) industrial transfer occurred domestically, rather than across nations; (2) sub-national transfer followed cross-national transfer; and (3) industrial migration is accompanied by a delayed replication of government policies and practices. While coastal locales today resolve to expel low-end industries, inland governments cannot afford to be selective and have only recently adopted the aggressive investment promotion tactics that coastal cities abandoned years ago. Policy diffusion is delayed as policy adoption depends on economic conditions, which vary widely across China and change over time.

摘要

本文旨在分析中国产业转移这一重要却未被深入研究的现象。该现象出现于 21 世纪初期,指资本与制造产业从发达的沿海地区向贫穷的中西部省份转移。2015 年, 仅中部五个省份吸引的国内投资就已经是全中国外国投资的 2.5 倍。与经典的亚洲 “飞鹅模式” 相比, 中国独特的经验体现在以下三个方面: (1) 产业转移发生于国内, 而非跨国; (2) 国内转移紧随国际转移的步伐; (3) 资本转移伴随着地方政府政策复制上的滞后。当现今沿海发达地区努力驱逐低端产业时, 内陆省份地方政府却无法选择, 最近已采纳了沿海地区多年前就已弃用的激进招商策略。换而言之, 由于政策的采纳取决于地方经济条件, 而中国各地经济条件差异很大, 随着时间的推移变化, 导致政策扩散滞后。

Type
Research Article
Copyright
Copyright © SOAS University of London 2018 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Akamatsu, Kaname. 1962. “A historical pattern of economic growth in developing countries.” The Developing Economies 1(1), 325.Google Scholar
Amsden, Alice. 1989. Asia's Next Giant: South Korea and Late Industrialization. New York: Oxford University Press.Google Scholar
Ang, Yuen Yuen. 2016. How China Escaped the Poverty Trap. Ithaca, NY: Cornell University Press.CrossRefGoogle Scholar
Ang, Yuen Yuen. 2017. “Do Weberian bureaucracies lead to markets or vice versa?” In Centeno, Miguel, Yashar, Deborah, Kohli, Atul (eds.), States in the Developing World. Cambridge: Cambridge University Press, 280306.Google Scholar
Bai, Chong-En, Du, Yingjuan, Tao, Zhigang and Tong, Sarah. 2004. “Local protectionism and regional specialization: evidence from China's industries.” Journal of International Economics 63(2), 397417.Google Scholar
Boehmek, Frederick, and Branton, Regina. 2014. “Sub-national politics: a methodological perspective.” In Haider-Markel, Donald P. (ed.), The Oxford Handbook of State and Local Government. Oxford: Oxford University Press, 855877.Google Scholar
Brandt, Loren, and Thun, Eric. 2016. “Constructing a ladder for growth: policy, markets, and industrial upgrading in China.” World Development 80, 7895.Google Scholar
Chen, Ling. 2014. “Varieties of global capital and the paradox of local upgrading in China.” Politics & Society 42(2), 223252.Google Scholar
Chen, Wenjie, Dollar, David and Tang, Weihai. 2016. “Why is China investing in Africa? Evidence from the firm level.World Bank Economic Review, doi: 10.1093/wber/lhw049.Google Scholar
Coase, Ronald, and Wang, Ning. 2012. How China Became Capitalist. New York: Palgrave Macmillan.Google Scholar
Evans, Peter. 1995. Embedded Autonomy: States and Industrial Transformation. Princeton, NJ: Princeton University Press.Google Scholar
Florini, Ann, Lai, Hairong and Tan, Yeling. 2012. China Experiments: From Local Innovations to National Reform. Washington, DC: Brookings Institution Press.Google Scholar
Gallagher, Mary. 2005. Contagious Capitalism: Globalization and the Politics of Labor in China. Princeton, NJ: Princeton University Press.Google Scholar
Gallagher, Mary. 2014. “China's workers movement and the end of the rapid-growth era.” Daedalus 143(2), 8195.Google Scholar
Ginzburg, A., and Simonazzi, A.. 2005. “Patterns of industrialization and the flying geese model: the case of electronics in East Asia.” Journal of Asian Economics 15(6), 1051–78.Google Scholar
Hatch, Walter. 2010. Asia's Flying Geese: How Regionalization Shapes Japan. Ithaca, NY: Cornell University Press.Google Scholar
Heilmann, Sebastian. 2008. “From local experiments to national policy: the origins of China's distinctive policy process.” The China Journal 59, 130.Google Scholar
Heilmann, Sebastian. 2011. “Policy-making through experimentation: the formation of a distinctive policy process.” In Perry, Elizabeth and Heilmann, Sebastian (eds.), Mao's Invisible Hand: The Political Foundations of Adaptive Governance in China. Cambridge: Harvard University Press, 62101.Google Scholar
Huang, Yasheng. 2003. Selling China: Foreign Direct Investment during the Reform Era. New York: Cambridge University Press.Google Scholar
Johnson, Chalmers. 1982. MITI and the Japanese Miracle: The Growth of Industrial Policy, 1925–1975. Stanford, CA: Stanford University Press.Google Scholar
Kanbur, Ravi, and Zhang, Xiaobo. 2005. “Fifty years of regional inequality in China: a journey through central planning, reform, and openness.” Review of Development Economics 9(1), 87106.Google Scholar
Kojima, Kiyoshi. 2000. “The flying geese model of Asian economic development: origin, theoretical extensions, and regional policy implications.” Journal of Asian Economics 11(4), 375401.Google Scholar
Kwon, Huck-Ju. 2009. “Policy learning and transfer: the experience of the developmental state in East Asia.” Policy and Politics 37(3), 409421.Google Scholar
Lai, Hongyi. 2002. “China's western development program: its rationale, implementation, and prospects.” Modern China 28(4), 432466.Google Scholar
Lai, Hongyi. 2007. “Developing central China: a new regional programme.” China: An International Journal 5(1), 109128.Google Scholar
Lardy, Nicholas. 2012. Sustaining China's Economic Growth after the Global Financial Crisis. Washington, DC: Peterson Institute for International Economics.Google Scholar
Leng, Tse-Kang. 2013. “Sovereignty at bay? Business networking and democratic politics of informal integration between Taiwan and Mainland China.” In Regnier, Philip and Liu, Fu-Kuo (eds.), Regionalism in East Asia. London: Routledge, 176196.Google Scholar
Li, Shi, Satō, Hiroshi and Sicular, Terry. 2013. Rising Inequality in China: Challenges to a Harmonious Society. New York, NY: Cambridge University Press.Google Scholar
Lin, Justin Yifu. 2012. Demystifying the Chinese Economy. Cambridge: Cambridge University Press.Google Scholar
Lorentzen, Peter, Landry, Pierre and Yasuda, John. 2014. “Undermining authoritarian innovation: the power of China's industrial giants.” Journal of Politics 76(1), 182194.Google Scholar
Man, Joyce, and Hong, Yu-hung. 2011. China's Local Public Finance in Transition. Cambridge, MA: Lincoln Institute of Land Policy.Google Scholar
Montinola, G., Qian, Yingyi and Weingast, Barry. 1995. “Federalism, Chinese style – the political basis for economic success in China.” World Politics 48(1), 5081.Google Scholar
Naughton, Barry. 1997. The China Circle: Economics and Electronics in the PRC, Taiwan, and Hong Kong. Washington, DC: Brookings Institution Press.Google Scholar
Naughton, Barry. 2003. “How much can regional integration do to unify China's market?” In Hope, Nicholas, Tao, Dennis and Li, Muyang (eds.), How Far across the River? Chinese Policy Reform at the Millennium. Stanford, CA: Stanford University Press, 204232.Google Scholar
Naughton, Barry. 2007. The Chinese Economy: Transitions and Growth. Cambridge, MA: MIT Press.Google Scholar
Naughton, Barry. 2015. “Economic rebalancing.” In deLisle, J. and Goldstein, A. (eds.), China's Challenges. Philadelphia, PA: University of Pennsylvania Press, 105124.Google Scholar
NDRC Industrial Economy Research Center. 2013. Zhongguo chanye fazhan baogao (Report on Industrial Development in China). Beijing: Beijing Economic and Management Publishing House.Google Scholar
Oi, Jean C. 1995. “The role of the local state in China's transitional economy.” The China Quarterly 144, 1132–49.CrossRefGoogle Scholar
Oi, Jean C. 1999. Rural China Takes Off: Institutional Foundations of Economic Reform. Berkeley, CA: University of California Press.Google Scholar
Pan, Jennifer. 2014. “Measuring the goals and incentives of local Chinese officials.” Stanford University Working Paper, http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.701.5581.Google Scholar
Porter, Michael. 1990. The Competitive Advantage of Nations. New York: Free Press.Google Scholar
Qian, Yingyi, and Wu, Jinglian. 2003. “China's transition to a market economy: how far across the river?” In Hope, Nicholas, Tao, Dennis and Li, Muyang (eds.), How Far across the Rver? Chinese Policy Reform at the Millennium. Stanford, CA: Stanford University Press, 3163.Google Scholar
Shih, Victor. 2004. “Development, the second time around: the political logic of developing western China.” Journal of East Asian Studies 4(3), 427451.CrossRefGoogle Scholar
Teets, Jessica, and Hurst, William. 2015. Local Governance Innovation in China: Experimentation, Diffusion, and Defiance. New York: Routledge.Google Scholar
Thun, Eric. 2006. Changing Lanes in China: Foreign Direct Investment, Local Governments, and Auto Sector Development. Cambridge: Cambridge University Press.Google Scholar
van der Kamp, Denise, Lorentzen, Peter and Mattingly, Dan. 2017. “Racing to the bottom or to the top?World Development 95, 164176.CrossRefGoogle Scholar
Wade, Robert. 1990. Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization. Princeton, NJ: Princeton University Press.Google Scholar
Walder, Andrew. 1995. “Local governments as industrial firms: an organizational analysis of China's transitional economy.” American Journal of Sociology 101(2), 263301.Google Scholar
Wallis, John. 2005. “Constitutions, corporations, and corruption: American states and constitutional change, 1842 to 1852.” The Journal of Economic History 65(1), 211256.Google Scholar
Wang, Yuhua. 2015. Tying the Autocrat's Hands: The Rise of the Rule of Law in China. New York: Cambridge University Press.Google Scholar
Wedeman, Andrew. 2003. From Mao to Market: Rent Seeking, Local Protectionism, and Marketization in China. Cambridge: Cambridge University Press.Google Scholar
Xu, Luodan, and Liang, Zhicheng. 2004. “Regional specialization and dynamic pattern of comparative advantage.” Review of Urban and Regional Development Studies 16(3), 231244.Google Scholar
Yang, Dali. 1997. Beyond Beijing: Liberalization and the Regions in China. London: Routledge.CrossRefGoogle Scholar
Young, Alwyn. 2000. “The razor's edge: distortions and incremental reform in the People's Republic of China.” The Quarterly Journal of Economics 115(4), 10911135.Google Scholar