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Macro- and Micro-Drivers of Manufacturing Performance of China

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  • Kevin H. Zhang

Abstract

China seems to emerge as a global industrial player in terms of manufacturing capacity and technology upgrading. Is China really an industrial power or merely a manufacturing giant? If it is truly a significant power, what accounts for China’s manufacturing success? First, we assess China’s manufacturing performance through global comparisons along three dimensions (manufacturing capacity, intensity, and quality). Then we analyze the main structural macro- and micro-drivers of manufacturing development in China, and finally we provide empirical estimations of the drivers. We find that China’s manufacturing success is real, primarily in terms of manufacturing capacity and intensity, but not yet in quality. The main drivers include China’s well-designed developmental strategy and industrial policy, large domestic and foreign investments, and increasingly improved infrastructures.

Suggested Citation

  • Kevin H. Zhang, 2015. "Macro- and Micro-Drivers of Manufacturing Performance of China," Chinese Economy, Taylor & Francis Journals, vol. 48(6), pages 399-412, November.
    • Handle: RePEc:mes:chinec:v:48:y:2015:i:6:p:399-412
    DOI: 10.1080/10971475.2015.1081805
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    Cited by:

    1. Zhang, Kevin H., 2021. "How does South-South FDI affect host economies? Evidence from China-Africa in 2003–2018," International Review of Economics & Finance, Elsevier, vol. 75(C), pages 690-703.

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