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The Development of the Chinese Automobile Industry Since 1949: the Role of Government Vol 1 and 2

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The Development of the Chinese Automobile Industry Since 1949: the Role of Government Vol 1 and 2 The development of the Chinese automobile industry since 1949: the role of government vol 1 and 2 Tan, Zhaotao PhD thesis deposited in CURVE February 2015 Original citation: Tan, Z. (2013) The development of the Chinese automobile industry since 1949: the role of government vol 1 and 2. Unpublished PhD thesis. Coventry: Coventry University There are a number of redactions due to third party copyright. The unabridged version of the thesis can be viewed at the Lanchester Library, Coventry University. Copyright © and Moral Rights are retained by the author(s) and/ or other copyright owners. A copy can be downloaded for personal non-commercial research or study, without prior permission or charge. This item cannot be reproduced or quoted extensively from without first obtaining permission in writing from the copyright holder(s). The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the copyright holders. CURVE is the Institutional Repository for Coventry University http://curve.coventry.ac.uk/open Executive Summary ------------------------------------------------------------------------- - 4 - Acknowledgements -------------------------------------------------------------------------- - 5 - List of Abbreviations ----------------------------------------------------------------------- - 7 - List of Figures -------------------------------------------------------------------------------- - 9 - List of Tables ------------------------------------------------------------------------------- - 11 - CHAPTER ONE – INTRODUCTION ----------------------------------------------- - 13 - 1. Background ---------------------------------------------------------------------------- - 13 - 2. Aim and objectives ------------------------------------------------------------------- - 22 - 3. Structure of the thesis ---------------------------------------------------------------- - 24 - CHAPTER TWO – LITERATURE REVIEW ------------------------------------- - 27 - 1. Introduction ---------------------------------------------------------------------------- - 27 - 2. The role of government in emerging economies --------------------------------- - 32 - 2.1 Debate on the role of government in emerging economies ----------------- - 32 - 2.2 Developmental state theory ----------------------------------------------------- - 35 - 2.3 The developmental state in East Asia ------------------------------------------ - 38 - 2.3.1 Japan -------------------------------------------------------------------------- - 39 - 2.3.2 South Korea ------------------------------------------------------------------ - 42 - 2.3.3 China -------------------------------------------------------------------------- - 45 - 2.4 Comparisons on the role of government to the automobile industry (Japan, South Korea, and China) ------------------------------------------------------------- - 48 - 3. Globalisation -------------------------------------------------------------------------- - 51 - 3.1 Definition -------------------------------------------------------------------------- - 51 - 3.2 Globalisation or internationalisation? ------------------------------------------ - 53 - 3.3 Globalisation or regionalism? --------------------------------------------------- - 55 - 4. Foreign direct investment ------------------------------------------------------------ - 59 - 4.1 Introduction ------------------------------------------------------------------------ - 59 - 4.2 Reasons for FDI ------------------------------------------------------------------- - 60 - 4.3 Measurement of FDI ------------------------------------------------------------- - 60 - 4.4 FDI inflows into China ---------------------------------------------------------- - 61 - 4.5 Foreign direct investment theories --------------------------------------------- - 64 - 4.5.1 Hymer’s specific advantage theory --------------------------------------- - 65 - 4.5.2 Vernon’s product life cycle theory --------------------------------------- - 67 - 4.5.3 Buckley and Casson’s internalisation theory --------------------------- - 70 - 4.5.4 Dunning’s eclectic paradigm ---------------------------------------------- - 71 - 4.5.4.1 Ownership-specific advantages ----------------------------------------- - 72 - 4.5.4.2 Location-specific advantages ------------------------------------------- - 73 - 4.5.4.3 Internalisation advantages ----------------------------------------------- - 74 - 4.5.5 Dunning’s investment development path -------------------------------- - 76 - 4.5.6 Dunning and joint ventures ------------------------------------------------ - 78 - 4.5.7 The costs and benefits of FDI --------------------------------------------- - 79 - 5. Industrial clusters --------------------------------------------------------------------- - 80 - 5.1 Clusters and the automobile industry ------------------------------------------ - 80 - 5.2 Types of clusters ------------------------------------------------------------------ - 81 - - 1 - 5.3 Cluster theories -------------------------------------------------------------------- - 84 - 5.3.1 Markusen’s industrial districts -------------------------------------------- - 84 - 5.3.2 Porter’s diamond model ---------------------------------------------------- - 88 - 5.3.3 Kuchiki’s flowchart approach --------------------------------------------- - 89 - 6. Summary ------------------------------------------------------------------------------- - 92 - CHAPTER THREE – CONCEPTUAL FRAMEWORK AND RESEARCH METHODOLOGY ------------------------------------------------------------------------ - 94 - 1. Introduction ---------------------------------------------------------------------------- - 94 - 2. Conceptual framework --------------------------------------------------------------- - 94 - 3. Research philosophy ---------------------------------------------------------------- - 101 - 3.1 Ontology -------------------------------------------------------------------------- - 102 - 3.2 Epistemology --------------------------------------------------------------------- - 102 - 3.2.1 Positivism ------------------------------------------------------------------- - 105 - 3.2.2 Interpretivism --------------------------------------------------------------- - 106 - 2.2.3 Post-positivism ------------------------------------------------------------- - 107 - 4. Validity and reliability -------------------------------------------------------------- - 109 - 5. Qualitative and quantitative approaches ------------------------------------------ - 110 - 6. Primary and secondary data -------------------------------------------------------- - 111 - 6.1 Primary data ---------------------------------------------------------------------- - 111 - 6.2 Secondary data ------------------------------------------------------------------- - 117 - 6.3 Case studies ----------------------------------------------------------------------- - 119 - 7. Significance of the research -------------------------------------------------------- - 120 - 8. Summary ------------------------------------------------------------------------------ - 122 - CHAPTER FOUR – GLOBAL AUTOMOBILE INDUSTRY ----------------- - 123 - 1. Introduction --------------------------------------------------------------------------- - 123 - 2. Growth of the global automobile industry --------------------------------------- - 124 - 3. Globalisation of the automobile industry ----------------------------------------- - 129 - 3.1 Globalisation and foreign direct investment in the automobile industry - 129 - 3.2 Industrial concentration of the global automobile industry ---------------- - 134 - 3.3 Globalisation of the components industry ----------------------------------- - 135 - 4. Regionalisation of the automobile industry -------------------------------------- - 136 - 5. Changing markets and technology ------------------------------------------------ - 138 - 6. Summary ------------------------------------------------------------------------------ - 140 - CHAPTER FIVE – CHINESE AUTOMOBILE INDUSTRY ------------------ - 142 - 1. Introduction --------------------------------------------------------------------------- - 142 - 2. Rise of automobile production in emerging economies ------------------------ - 143 - 3. An overview of the Chinese automobile industry ------------------------------- - 145 - 3.1 Closed period (1949 – late 1970s) -------------------------------------------- - 146 - 3.2 Transition period (late 1970s – mid 1990s) ---------------------------------- - 150 - 3.2.1 Decentralisation ------------------------------------------------------------ - 151 - 3.2.2 Automobile industrial policy of 1988 and 1994 ----------------------- - 153 - 3.2.3 International joint ventures ----------------------------------------------- - 161 - 3.3 Development period (mid 1990s – 2004) ------------------------------------ - 164 - 3.3.1 WTO entry ------------------------------------------------------------------ - 165 - 3.3.2 Automobile industrial policy of 2004 ----------------------------------- - 167 - 3.3.3 Establishment of new indigenous automobile firms ------------------ - 168 - 4. The current situation: 2004 – 2011 ------------------------------------------------ - 171 - - 2 - 4.1 Manufacturing landscape ------------------------------------------------------- - 171 - 4.2 Industrial geographical concentration ---------------------------------------- - 173 - 4.2.1 Major automobile production locations--------------------------------- - 174 - 4.2.2
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