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Economic Development in Shanghai and the Role of the State

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  • Le-Yin Zhang

    (Development Planning Unit, University College London, 9 Endsleigh Gardens, London, WC1H 0ED, UK, ucfulyz@ucl.ac.uk)

Abstract

This article examines the economic development process underlying Shanghai's rapid urban transformation in the 1990s. It analyses the key factors that have contributed to the economic development there and assesses critically the role of the state in this process. It concludes that the sheer scale of investment and the national contexts, rather than far-sighted economic management at the local level, are the keys to its economic success. The article further argues that the prevailing views regarding the local state-market relationship in Shanghai need to be revised: beneath the façade of a proactive and omnipotent state are numerous instances of failure and ineffectiveness. Moreover, the market is much more than a tool in the state's decision-making. It is a growing force that the state is trying hard to control, but with increasing difficulties.

Suggested Citation

  • Le-Yin Zhang, 2003. "Economic Development in Shanghai and the Role of the State," Urban Studies, Urban Studies Journal Limited, vol. 40(8), pages 1549-1572, July.
  • Handle: RePEc:sae:urbstu:v:40:y:2003:i:8:p:1549-1572
    DOI: 10.1080/0042098032000094423
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    References listed on IDEAS

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    Cited by:

    1. Michael White & Qiulin Ke, 2014. "Investigating the dynamics of, and interactions between, Shanghai office submarkets," Journal of Property Research, Taylor & Francis Journals, vol. 31(1), pages 26-44, March.
    2. Shiuh‐Shen Chien, 2008. "Local Responses To Globalization In China: A Territorial Restructuring Process Perspective," Pacific Economic Review, Wiley Blackwell, vol. 13(4), pages 492-517, October.
    3. Fulong Wu & Chris Webster & Shenijing He & Yuting Liu, 2010. "Urban Poverty in China," Books, Edward Elgar Publishing, number 13189.
    4. Horace Yeung, 2015. "A tale of two cities -- the development and reform experiences of Shenzhen and Shanghai," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 13(4), pages 369-396, November.

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