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Economic Linkages of China's Small Towns

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Economic Linkages of China's Small Towns Economic Linkages of China’s Small Towns: Urban-rural Integration in a Learning Economy A thesis submitted to The University of Manchester for the degree of PhD in Planning in the Faculty of Humanities 2016 Miao Qiao School of Environment, Education and Development Dedicated to Manchester, so much to answer for 2 Table of Contents List of figures 9 List of tables 10 Abbreviations 12 Abstract 14 Declaration 15 Copyright statement 16 Acknowledgement 17 The author 18 Chapter 1 Introduction 19 Urban-Rural Integration in China: challenges from dualism, diversity, and uncertainty 19 Dualism: institutional discrimination against rural areas 20 Diversity: no one-size-fits-all answer 21 Uncertainty: competing in a learning economy 22 Research Significance: a rural-centred, place-based, and process-oriented approach towards urban-rural integration 22 3 Aim and Objectives 23 Thesis Structure 25 Chapter 2 Literature Review 27 Urban-Rural Classification and Definition of Small Towns 29 Urban-rural classification and urban-rural linkages 29 Definition of small towns 31 Function of small towns as central places 32 Economic Linkages in Growth Pole Theory: spread and backwash effects 36 Growth poles and urban centres 36 Spread and backwash effects of growth poles 37 Application of growth pole strategy and its limitations 39 Economic Linkages in Production Network: chains, clustering and coupling 41 Globalisation and the emergence of specialised regions 41 Production network and Industrial districts 43 The bright and dark side of strategic coupling 48 The elements of locational advantage and cluster effects 50 Supporting system for cluster 54 Economic Linkages in Learning Region: interaction and learning 55 Learning economies and innovation 56 Learning region: locational characteristics of innovative activities 57 Elements of learning and absorptive capacity 60 4 Economies of association 64 Learning economy in rural areas 66 Critical discussion: conceptualising economic linkages in territorial economic system 67 Chapter 3 Urban-Rural Relations in China 73 Two Chinas in the Maoist era: urban China and rural China 73 City and county: urban and rural administration 74 Industrial urban and agricultural rural: urban-rural division of labour 84 Reform and urban-rural conditions 91 The rural as the pioneer of reform 92 Deepening reform and rural-urban development 104 Staggering towards balanced urban-rural relations 115 Conclusions: challenges to urban-rural integration 124 Chapter 4 Conceptual Framework and Research Methodology 127 The Construction and Application of the Conceptual Framework 127 The conceptual framework 128 Interactive situations: situational cases for economic linkages 140 Research Methodology 162 Methodological design: comparative case studies 163 5 Case selection 165 Data collection and processing 169 Chapter 5 The Economic Linkages of Small Towns (1): learning- based development in Kunshan 173 Introduction: the development stage approach 173 Regional Contexts of Kunshan: persistent authoritarianism in Jiangsu 174 The Economic Linkages of Kunshan 179 Initial industrialisation (mid-1970s to late-1980s): locational advantage and linkages with Shanghai 180 Catching-up (early-1990s to early-2000s): foreign investment and Economic Development Zone 192 Adjustment (early 2000s to late 2000s): diversification and upgrading of FDI 199 Restructuring (late 2000s until present): technological innovation and attraction of talents 203 Conclusions 219 Chapter 6 The Economic Linkages of Small Towns (2): learning- based development in Shunde 221 Regional Contexts of Shunde: pioneering spirits in Guangdong 221 The Economic Linkages of Shunde 225 6 Liberating the economy (mid-1970s to late-1980s): industrialisation and TVE development 226 Modernising the economy (early-1990s to early-2000s): marketisation and service-oriented government 232 Reorganising the economy (early-2000s to late-2000s): regional branding and intermediate organisations 241 Restructuring the economy (since late-2000s): integration of industrial and urban development 251 Conclusions 267 Chapter 7 Development Models of Learning-based TES 270 Introduction 270 A Critical Discussion of Economic Linkages of Small Towns 270 Key findings related to the research questions 270 Key implications of the empirical findings 275 LTES Models of Kunshan and Shunde: Bridging Theories and Practices 278 LTES model: towards coherent interactive situations in problem-solving 278 The Kunshan Model: positioning, coalition building, and operation 282 The Shunde Model: monitoring, matching, and mediation 286 Summary and comparison of the two development models 290 Policy implications 293 The objective of policy 293 7 The procedures of local policy making in small towns 294 Implications for regional and national policies 296 Chapter 8 Conclusions 298 Theoretical reflections on economic linkages 299 The nature of development problems 300 The approach to organisation 301 The geography of development 302 Research limitations 305 Economic focus 305 The research breadth and depth 306 The methodological issues 307 Future research agenda 308 Bibliography 309 Appendixes 328 (Word count: 80,747) 8 List of figures Figure 2.1 A virtuous circle model of rural-urban development ............................................. 34 Figure 2.2 Strategic coupling in GPN ...................................................................................... 49 Figure 2.3 Sources of locational competitive advantage ......................................................... 52 Figure 2.4 the holy trinity of reflexive turn ............................................................................. 58 Figure 3.1 Hierarchy of territorial administration in China ..................................................... 75 Figure 3.2 Urban-rural classification in China ........................................................................ 78 Figure 4.1 The Conceptual Framework of Learning-based TES ........................................... 130 Figure 4.2 A formula of problem solving .............................................................................. 131 Figure 4.3 Types of knowledge in the different steps of problem solving ............................ 135 Figure 4.4 Interactive situations of the knowledge system .................................................... 146 Figure 4.5 Interactive situations of the organisational system ............................................... 150 Figure 4.6 Interactive dimension of the territorial system ..................................................... 154 Figure 4.7 Location of Kunshan ............................................................................................ 167 Figure 4.8 Location of Shunde ............................................................................................... 168 Figure 5.1 Percentage of industrial output in selected years (Kunshan)................................ 181 Figure 5.2 Ownership structure of industrial output (Kunshan) ............................................ 183 Figure 5.3 Ownership structure of industrial output in EDZ (Kunshan), 1990 ..................... 193 Figure 5.4 Contracted FDI in Kunshan in selected years ...................................................... 195 Figure 6.1 Sectoral structure in Shunde, 2005 (by industrial output) .................................... 249 Figure 6.2 Proportion of CC members by origins.................................................................. 257 Figure 6.3 the locations of industrial parks in Shunde ........................................................... 264 Figure 7.1 Components of the LTES model .......................................................................... 281 Figure 7.2 Interactive situations in the Kunshan Model ........................................................ 282 Figure 7.3 Interactive situations in the Shunde Model .......................................................... 286 9 List of tables Table 2.1 ESPON urban-rural classification ............................................................................ 29 Table 4.1 Types of Knowledge .............................................................................................. 134 Table 4.2 Basic information about Kunshan and Shunde ...................................................... 166 Table 4.3 Basic information about Jiangsu and Guangdong ................................................. 167 Table 4.4 Key interview questions by type of organisation................................................... 171 Table 5.1 the portion of industrial output in selected years (Unit: ten thousand yuan) ......... 181 Table 5.2 Economic statistics of EDZ (Kunshan) in early years ........................................... 188 Table 5.3 Locational attributes of collaboration .................................................................... 190 Table 5.4 Types of Collaboration .......................................................................................... 191 Table 5.5 Number of collaboration projects by sector ........................................................... 192 Table 5.6 the concentration of IT industry in Kunshan ......................................................... 197 Table 5.7 Leading firms in new panel display sector featuring domestic ownership ............ 202 Table 5.8 Ownership structure of industry in Kunshan ......................................................... 204 Table 5.9 Ratios of Export growth to GDP growth ..............................................................
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