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Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance

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  • Michela Giorcelli
  • Bo Li

Abstract

This paper studies the causal effect of technology and knowledge transfers on early industrial development. Between 1950 and 1957, the Soviet Union supported the “156 Projects” in China for building technologically advanced industrial facilities. We exploit idiosyncratic delays in project completion and the unexpected end of the Sino-Soviet Alliance, and show that receiving both Soviet technology and know-how had large, persistent effects on plant performance, while the effects of receiving only Soviet capital goods were short-lived. The intervention generated horizontal and vertical spillovers, and production reallocation from state-owned to privately owned companies since the late 1990s.

Suggested Citation

  • Michela Giorcelli & Bo Li, 2022. "Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance," CESifo Working Paper Series 9552, CESifo.
    • Handle: RePEc:ces:ceswps:_9552
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    References listed on IDEAS

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    Cited by:

    1. Gaspar, Raymond, 2022. "Harnessing Foreign Technology to Improve Firm Performance: Evidence from Philippine Manufacturing Enterprises," ADBI Working Papers 1321, Asian Development Bank Institute.

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    More about this item

    Keywords

    industrialization; technology transfer; knowledge diffusion; China;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • N64 - Economic History - - Manufacturing and Construction - - - Europe: 1913-
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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