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Capital misallocation is a main obstacle to China's economic development. This paper deploys a quasi-natural experiment formed by the 'Revitalization Plan for Ten Industries' (RPTI) and examines the impacts that selective industrial policies have on capital misallocation. It is found that the RPTI significantly exacerbates capital misallocation and that the effect does not disappear when the RPTI ends. Mechanism analysis indicates that the RPTI significantly increases the capital productivity of firm groups with high capital productivity but significantly reduces the capital productivity of firm groups with low capital productivity. This can be further interpreted by a decrease or an increase of inefficient investment and financial constraints faced by the corresponding firm groups. The documented relationship is stronger in state-owned enterprises and in firms located in areas of high marketization. Our findings advance the understanding of governmental policy intervention in developing countries. [ABSTRACT FROM AUTHOR]

Japan's rapid post-war economic growth prompted Chinese leaders to look to their neighbour as they initiated market reforms from the late 1970s. How did movements of people and ideas between China and Japan occur, and what were their effects on Chinese enterprise policies? From the 1970s through the 1990s, Chinese officials, scholars, and enterprise representatives invited Japanese advisors to China, conducted myriad exchanges through associations like the Sino-Japanese Economic Knowledge Exchange and the Japan-China Economic Association, and actively studied Japan's economy and companies. Chinese policy-makers gained insights from Japan about market-responsive forms of corporate structure, organisational solutions to state ownership dilemmas, evidence that consolidation could aid economic performance and technological upgrading, and strategic commitment to building large state-owned enterprise groups. However, this episode of intense engagement between China and Japan generated neither unilateral 'diffusion' nor unitary influence. Instead, it reveals how China has developed its own path of economic development through what I term 'policy collaging': seeking, selecting, and creatively combining policy ideas and practices from international sources. [ABSTRACT FROM AUTHOR]

This article contends that increasing centralisation of decision-making in China will undermine the country's future economic growth. It highlights the declining role of private enterprises and the increasing role of state-owned enterprises (SOEs) in the economy, and the extension of Communist Party influence in both SOEs and the private sector through the Party's Organization Department and United Front Work Department. It argues that the increasing role of the state in the economy over the past decade has stifled growth through a decline in 'total factor productivity' because of increasing misallocation of resources. Centralisation, with associated losses in efficiency, objectivity, agility, speed and finesse regarding allocations of risks and investment, has debilitated decentralised decision-making and reduced the incentives for undertaking risks and innovation. The article argues that increasing Party control over the SOEs and the private sector will negatively impact the corporate structure and management decisions, exacerbate the fundamental problems of corporate governance and limit or hamper innovation. [ABSTRACT FROM AUTHOR]

This article examines the characteristics of the resource-led development project in Azerbaijan, including the policies of the Azerbaijani government and their consequences. It makes three contributions to the literature on critical development studies. First, it fills an empirical lacuna by discussing the case of Azerbaijan. Second, it expands upon the criticisms of statist-developmentalist models raised in the literature by demonstrating how the patrimonial rent distribution strategy of the Azerbaijani government plundered resource rents through state-owned enterprises and government-connected private companies, and crippled education and healthcare through underfunding and commodification. Third, as part of an examination of the recent attempts of the Azerbaijani government to diversify the economy and move to the post-oil era, it sheds light on some of the economic development challenges faced by a unique case of a resource-rich country with a closing window of energy resources. The arguments are illustrated and supported from sources pertaining to the political and economic situation in Azerbaijan, the activities of the transnational oil corporations, and US and UK foreign policies in the Caspian Sea. [ABSTRACT FROM AUTHOR]