Developmental State, Industrial Policy, and Green Growth in China

Living reference work entry
Part of the Sustainable Development book series (SD)


This chapter gives a clear outlook to the case of the developmental state in China in conjunction with industrial policies. The chapter specifically compares China with the previous developmental states in Japan, Korea, and Taiwan. Possible cases that evoke the Chinese case or stand as a conceptual approach to the developmental state model are also examined. A brief historical background of Chinese economic development is also provided to see the major events and policy changes. The communist inheritance of Deng Xiaoping and the transformation are defined through remarkable events. This historical outline is linked to a political economy interpretation to explain the institutions, dynamics, and policies that constitute the Chinese developmental state. A comparative analysis elaborates the Chinese developmental state vis-à-vis the previous East Asian experiences. The main question is whether the developmental state is still alive or dead. Since the development process of China is still ongoing, recent events are also of interest to provide an insight to the current stage of development. We also elaborate on the recent green industrial policies in China as a case in point.


China Developmental state Green growth Industrial policy East Asia 


  1. Akkemik KA (2009) Industrial development in East Asia: a comparative look at Japan, Korea, Taiwan, and Singapore. World Scientific, HackensackGoogle Scholar
  2. Akkemik KA, Göksal K (2010) Do Chinese exports crowd-out Turkish exports? İktisat İşletme ve Finans 25(287):9–32Google Scholar
  3. Amsden AH (1989) Asia’s next giant: South Korea and late industrialization. Oxford University Press, OxfordGoogle Scholar
  4. Aoki M (2008) Whither Japan’s corporate governance. In: Aoki M, Jackson G, Miyajima H (eds) Corporate governance in Japan: institutional change and organizational diversity. Oxford University Press, Oxford, pp 427–448Google Scholar
  5. Baek SW (2005) Does China follow “the East Asian development model”? J Contemp Asia 35:485–498CrossRefGoogle Scholar
  6. Baylis J, Smith S, Owens P (eds) (2013) The globalization of world politics: an introduction to international relations. Oxford University Press, OxfordGoogle Scholar
  7. Beeson M (2009) Developmental states in East Asia: a comparison of the Japanese and Chinese experiences. Asian Perspect 33:5–39Google Scholar
  8. Bramall C (2000) Sources of Chinese economic growth, 1978–1996. Oxford University Press, OxfordCrossRefGoogle Scholar
  9. Bramall C (2009) Chinese Economic Development. Routledge, LondonGoogle Scholar
  10. Brandt L, Ma D, Rawski TG (2014) From divergence to convergence: reevaluating the history behind China’s economic boom. J Econ Lit 52:45–123CrossRefGoogle Scholar
  11. Breslin SG (1996) China: developmental state or dysfunctional development? Third World Q 17:689–706CrossRefGoogle Scholar
  12. Carney M, Gedajlovic E, Yang X (2009) Varieties of Asian capitalism: toward an institutional theory of Asian enterprise. Asia Pac J Manage 26:361–380CrossRefGoogle Scholar
  13. Chai W (2003) The ideological paradigm shifts of China’s world views: from Marxism–Leninism–Maoism to the pragmatism–multilateralism of the Deng-Jiang-Hu era. Asian Aff Am Rev 30:163–175CrossRefGoogle Scholar
  14. Chandra NK (1997) Legacy of Deng Xiaoping. Econ Polit Weekly 32:642–644Google Scholar
  15. Chen C, Chang L, Zhang Y (1995) The role of foreign direct investment in China’s post-1978 economic development. World Dev 23:691–703CrossRefGoogle Scholar
  16. Dai H et al (2016) Green growth: the economic impacts of large-scale renewable energy development in China. Appl Energ 162:435–449CrossRefGoogle Scholar
  17. Fan CC (2006) China’s Eleventh Five-Year Plan (2006–2010): From ‘Getting Rich First’ to ‘Common Prosperity’. Eurasian Geogr Econ 47(6):708–723Google Scholar
  18. Fine B (1999) The developmental state is dead – long live social capital? Dev Change 30:1–19CrossRefGoogle Scholar
  19. Ge W (1999) Special economic zones and the opening of the Chinese economy: some lessons for economic liberalization. World Dev 27:267–1285CrossRefGoogle Scholar
  20. Greenaway D, Mahabir A, Milner C (2008) Has China displaced other Asian countries’ exports? China Econ Rev 19:152–169CrossRefGoogle Scholar
  21. Hall PA, Soskice D (2001) Varieties of capitalism: the institutional foundations of comparative advantage. Oxford University Press, OxfordCrossRefGoogle Scholar
  22. Hammer S, Kamal-Chaoui L, Robert A, Plouin M (2011) Cities and green growth: a conceptual framework. OECD Regional Development Working Papers No. 2011/08Google Scholar
  23. He Z (2000) Corruption and anti-corruption in reform China. Communis Post-Commun Stud 33:243–270CrossRefGoogle Scholar
  24. Herring RJ (1999) Embedded particularism: India’s failed developmental state. In: Woo-Cumings M (ed) The developmental state. Cornell University Press, Ithaca, pp 306–334Google Scholar
  25. Ho MS, Wang Z (2014) Green growth (for China): a literature review. Resources for the Future Discussion Paper No. 14-22Google Scholar
  26. Howe C (1996) The Taiwan economy: the transition to maturity of the political economy of its changing international status. China Quart 148:1171–1195CrossRefGoogle Scholar
  27. Hui W, Karl RE (1998) Contemporary Chinese thought and the question of modernity. Soc Text 55:9–44CrossRefGoogle Scholar
  28. Ianchovichina E, Martin W (2004) Impacts of China’s accession to the World Trade Organization. World Bank Econ Rev 18:3–27CrossRefGoogle Scholar
  29. Johnson C (1982) MITI and the Japanese miracle: the growth of industrial policy: 1925–1975. Stanford University Press, StanfordGoogle Scholar
  30. KPMG (2011) China’s 12th five-year plan: overview. KPMG Insight Series, KPMG China, Hong KongGoogle Scholar
  31. Kim SY (2007) The East Asian developmental state and its economic and social policies: the case of Korea. Int Rev Public Adm 12:69–87Google Scholar
  32. Krugman P (1994) The myth of Asia’s miracle. Foreign Aff 73:62–78CrossRefGoogle Scholar
  33. Lin JY, Yao Y (2001) Chinese rural industrialization in the context of the East Asian miracle. In: Stiglitz J, Yusuf S (eds) Rethinking the East Asian miracle. Oxford University Press, Oxford, pp 143–195Google Scholar
  34. Loriaux M (1999) The French developmental state as myth and moral ambition. In: Woo-Cumings M (ed) The developmental state. Cornell University Press, Ithaca, pp 235–275Google Scholar
  35. Mathews JA (2012) Green growth strategies – Korean initiatives. Futures 44:761–769CrossRefGoogle Scholar
  36. Meisner M (1996) The Deng Xiaoping era: an inquiry into the fate of Chinese socialism, 1978–1994. Hill and Wang, New YorkGoogle Scholar
  37. Menteşoğlu Tuncer B, Akkemik KA (2015) Çin’deki Yabancı Firmaların Doğrudan Yatırım Eğilimlerine Dair Bir Değerlendirme. In: Akkemik KA, Ünay S (eds) Doğu Asya’nın Politik Ekonomisi: Japonya, Çin ve Güney Kore’de Kalkınma, Siyaset ve Jeostrateji. Boğaziçi University Press, Istanbul, pp 323–341Google Scholar
  38. Mohanty DR (1998) Power struggle in China: the post-Deng scenario and Jiang Zemin as the “first among equals”. Strategic Anal 22:249–261CrossRefGoogle Scholar
  39. Naughton B (1985) False starts and second wind: financial reforms in China’s industrial system. In: Perry EJ (ed) The political economy of reform in post-Mao China. Harvard University Press, Cambridge, MA, pp 223–252Google Scholar
  40. Naughton B (1993) Deng Xiaoping: the economist. China Quart 135:491–514CrossRefGoogle Scholar
  41. Naughton B (2007) The Chinese economy: transitions and growth. MIT Press, Cambridge, MAGoogle Scholar
  42. Nee V, Opper S, Wong S (2007) Developmental state and corporate governance in China. Manage Organization Rev 3:19–53CrossRefGoogle Scholar
  43. Ng S. Mabey N, Gaventa J (2016) Pulling ahead on clean technology: China’s 13th Five Year Plan challenges Europe’s low carbon competitiveness. Briefing Paper E3G, LondonGoogle Scholar
  44. Olivier JGJ, Janssens-Maenhout G, Muntean M, Peters JAHW (2013) Trends in global CO2 emissions: 2013 report. European Commission, Institute for Environment and Sustainability, IspraGoogle Scholar
  45. Öniş Z (1991) The logic of the developmental state. Comp Polit 24:109–126CrossRefGoogle Scholar
  46. Ota T (2003) The role of special economic zones in China’s economic development as compared with Asian export processing zones: 1979–1995. Asia in Extenso, University of Poitiers, PoitiersGoogle Scholar
  47. Pegels A (2014) Green industrial policy in emerging countries. Routledge, LondonGoogle Scholar
  48. Rodrik D (2006) What’s so special about China’s exports? China World Econ 14:1–19CrossRefGoogle Scholar
  49. Schneider BR (1999) The desarrollista state in Brazil and Mexico. In: Woo-Cumings M (ed) The developmental state. Cornell University Press, Ithaca, pp 276–305Google Scholar
  50. Shirk SL (1985) The politics of industrial reform. In: Perry EJ, Wong C (eds) The Political Economy of Reform in Post-Mao China. Harvard University Press, Cambridge, Massachusetts, pp 195–221Google Scholar
  51. Shishido Z (2008) The turnaround of 1997: changes in Japanese corporate law and governance. In: Aoki M, Jackson G, Miyajima H (eds) Corporate governance in Japan: institutional change and organizational diversity. Oxford University Press, Oxford, pp 310–329Google Scholar
  52. Togo K (2010) Japan’s foreign policy, 1945–2009: the quest for a proactive policy. Brill, LeidenCrossRefGoogle Scholar
  53. Wade R (1990) Governing the market: economic theory and the role of government in East Asian industrialization. Princeton University Press, PrincetonGoogle Scholar
  54. Wade RH (2003) What strategies are viable for developing countries today? The World Trade Organization and the shrinking of ‘development space’. Rev Int Polit Econ 10:621–644CrossRefGoogle Scholar
  55. Wong J (2004) The adaptive developmental state in East Asia. J East Asian Stud 4:345–362CrossRefGoogle Scholar
  56. Wu HX, Ito K (2015) Reconstructing China’s supply–use and input–output tables in time series. RIETI Discussion Papers No.15-E-004Google Scholar
  57. Xu C (2011) The fundamental institutions of China’s reforms and development. J Econ Lit 49:1076–1151CrossRefGoogle Scholar
  58. Xu C, Zhang X (2011) The evolution of Chinese entrepreneurial firms: township–village enterprises revisited. In: Wu HM, Yao Y (eds) Reform and development in China: what can China offer the dDeveloping world. Routledge, London, pp 161–186Google Scholar
  59. Yao Y (2009) The disinterested government: an interpretation of China’s economic success in the reform era. UNU WIDER Research Paper No. 2009/33Google Scholar
  60. Zhu X (2012) Understanding China’s growth: past, present, and future. J Econ Perspect 26:103–124CrossRefGoogle Scholar

Authors and Affiliations

  1. 1.Yenching Academy, Peking UniversityBeijingChina
  2. 2.Department of EconomicsKadir Has UniversityIstanbulTurkey

Personalised recommendations