Publication: China's Integration with the World : Development as a Process of Learning and Industrial Upgrading
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Date
2008-12
ISSN
Published
2008-12
Author(s)
Abstract
The process of development is full of
uncertainties, especially if it is a process of transition
from a planned economy to a market oriented one. Because of
uncertainties and country specificity, development must be a
process of learning, selective adaptation, and industrial
upgrading. This paper attempts to distill lessons from
China's reform and opening up process, and investigate
the underlying reasons behind China's success in trade
expansion and economic growth. From its beginnings with
home-grown and second-best institutions, China has embarked
on a long journey of reform, experimentation, and learning
by doing. It is moving from a comparative advantage-defying
strategy to a comparative advantage-following strategy. The
country is catching up quickly through augmenting its factor
endowments and upgrading industries; but this has been only
partially successful. Although China is facing several
difficult challenges - including rising inequality, an
industrial structure that is overly capital and energy
intensive, and related environmental degradation - it is
better positioned to tackle them now than it was 30 years
ago. This paper reviews the drivers behind China's
learning and trade integration and provides both positive
and negative lessons for developing countries with diverse
natural endowments, especially those in Sub-Saharan Africa.
Link to Data Set
Citation
“Lin, Justin Yifu. 2008. China's Integration with the World : Development as a Process of Learning and Industrial Upgrading. Policy Research Working Paper; No. 4799. © Washington, DC: World Bank. http://hdl.handle.net/10986/6336 License: CC BY 3.0 IGO.”
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