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Local Government and Big Business in the People's Republic of China -- Case Study Evidence from Shandong Province

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  • Ling Liu

Abstract

China has implemented comprehensive industrial policies that originally had their origins in the command economy. It is argued in this case study that one characteristic of industrial policies in China involves government intervention at all levels, namely central, provincial, municipal, county, township and village. This article presents an in-depth examination of the role of provincial government in pursuing industrial polices and in constructing big businesses during the reform period. It draws the conclusion that even in the World Trade Organization (WTO) era, it is still feasible for provincial governments to manage the local economy and promote big businesses by allowing local firms to enjoy both economies of scale and subsidies.

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  • Ling Liu, 2008. "Local Government and Big Business in the People's Republic of China -- Case Study Evidence from Shandong Province," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(4), pages 473-489, October.
    • Handle: RePEc:taf:apbizr:v:14:y:2008:i:4:p:473-489
    DOI: 10.1080/13602380701458284
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