The impact of government policies on industrial evolution : the case of China's automotive industry

Governmental industrial policies have great influence on industrial performances and development trajectories. The infant industry theory has been the dominating theoretical foundation of the industrial policies in developing countries to protect and foster their immature industries. However, the successful application of infant industry theory is subject to many conditions, such as the economic and political environment in a specific country. In this thesis, the case of China's automotive industry under strong industrial policies is used to demonstrate the complex dynamics between policies and industrial development, as well as the interactions between government and industry. Especially, the key factors that determine the success or failure of the infant industry theory are the research focus. The overall industrial characteristics of China's automotive industry were overviewed. The industry was protected and fostered in the past two decades with a few policy options, such as trade barriers, joint venture regulation, local content rule, industrial entry limit and etc. However, the indigenous industry became highly fragmented, still lacks independent technological capabilities, and relies on the international automakers which have gradually dominated the passenger car market in China over the time of protection.

Department dc:contributor.department

Massachusetts Institute of Technology. Technology and Policy Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Luo, Jianxi

Advisor dc:contributor.advisor

• Daniel Roos.

• Technology and Policy Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/38511

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/38511