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The Oxford Companion to the Economics of China$
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Shenggen Fan, Ravi Kanbur, Shang-Jin Wei, and Xiaobo Zhang

Print publication date: 2014

Print ISBN-13: 9780199678204

Published to Oxford Scholarship Online: December 2014

DOI: 10.1093/acprof:oso/9780199678204.001.0001

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Industrial upgrading and productivity growth in China

Industrial upgrading and productivity growth in China

(p.256) 40 Industrial upgrading and productivity growth in China
The Oxford Companion to the Economics of China

Loren Brandt

Oxford University Press

This chapter examines industrial upgrading and productivity growth in China. Recent studies indicate significant productivity growth in Chinese manufacturing over the last decade and a half. This growth is relatively broad based, and cuts across sectors, regions, and ownership groups. Product upgrading, in the form of cost and quality innovation, is allowing firms to capture a rising market share in demanding markets at home and overseas. However, huge distortions in the domestic market prevent the best firms from growing more rapidly. These impediments are likely policy-related and tied up in China’s political economy at both the local and central level.

Keywords:   manufacturing industry, economic policy, industrial policies, industrial productivity, domestic market

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