Local state developmentalism and regional industrial transformation : a case study of Chongqing, China

Abstract

This dissertation investigates the role of local states in driving regional industrial development in China, focusing on the emergence of the laptop manufacturing industry in Chongqing. It explores how Chongqing government has facilitated the emergence of a new growth path by strategically importing established production networks. Through a comprehensive case study, this research provides a nuanced understanding of local developmental state in facilitating new industrial paths. This dissertation contributes to the literature on local developmental states and regional industrial transformation by examining the design and practical implementation of policies and strategies in this process. It provides insights into the 'how' of policy execution, which is often overlooked in existing literature. The research employs a qualitative methodology, supplemented by quantitative data. Primary data were collected through a combination of semi-structured and unstructured interviews conducted during fieldwork in Chongqing. Secondary data were gathered from official statistical yearbooks, government documents, research reports, and online sources. This mixed-methods approach allows for a detailed examination of the context, evolution, and dynamics of the empirical case. The first empirical chapter delves into the motivations behind Chongqing's strategic targeting of the laptop manufacturing sector, emphasizing the alignment of local development goals with national strategies and global market trends. This chapter identifies key opportunities for industrial development and highlights the strategic considerations that guided Chongqing’s choice, reflecting a combination of plan-rationality and market-rationality. The second empirical chapter analyzes the policy formulation process, detailing the various instruments employed by the Chongqing government to attract external investments. The findings suggest that, compared to financial incentives, modifying assets to create a conducive industrial environment is more crucial. Additionally, the case of Chongqing demonstrates how leveraging interdependencies within global production networks can attract investments. The third empirical chapter focuses on the materialization of the Chongqing-Xinjiang-Europe Rail Express. The findings highlight the entrepreneurial strategies employed by local governments, such as scaling up and forming state-business coalitions. This indicates that it is challenging to define China’s local governments with a single concept like developmentalism or entrepreneurialism. Overall, this thesis provides a comprehensive analysis of how local governments can drive industrial transformation. It discusses the broader implications for other regions in China, offering valuable lessons for policymakers and practitioners aiming to replicate Chongqing’s success in different contexts.