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The Chinese and Indian Automobile Industry in Perspective: Technology Appropriation, Catching-up and Development

  • World Transition Economy Research
  • Published:
Transition Studies Review

Abstract

The comparison of the automobile industry in China and India allows us to shed light on the economic processes of emergence at large. There is a stark contrast in the capacities of autonomisation and endogenisation of the sector in the two countries. This contrast serves as an analyser of the relationships between the modes of sector opening and the paths of technological catching-up that is at the core of the phenomenon of emergence.

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Notes

  1. The low level of initial investment explain, partially, the failure of the French maker’s strategy. On this case, see Ruffier 2006.

  2. At least at final assemblers level. This is not the case for sub-contractors which can now set up 100% foreign owned companies.

  3. Richet and Wang (2002).

  4. This point is addressed by Huang (2003).

  5. These companies are not linked to big State-owned enterprises but are still backed by provincial and municipal authorities.

  6. Huang (2003).

References

  • BNP Paribas (2005) Aperçu de l’industrie automobile en Chine et en Corée du Sud. Perspectives du marché, risques et opportunités, Conjoncture, janvier-février, n°1

  • Huang Y (2003) Selling China. Foreign direct investment during the reform Era, Cambridge, CUP

  • Richet X, Wang W (2002) Foreign direct investment in the Chinese automotive industry: a case study through Sino-France Joint Ventures in China, China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences

  • Ruffier J (2006) Faut-il avoir peur des usines chinoises ? Compétitivité et pérennité de l’ateleir du monde, L’Harmattan, Questions contemporaines, Paris

  • Thun E (2005) Changing lanes in China: foreign direct investment, Local governments, and auto sector development, Cambridge University Press, vol 9, Issue 4, Q4

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Author information

Authors and Affiliations

  1. Jean Monnet Chair, Université Sorbonne Nouvelle, Paris, France

    Xavier Richet

  2. CNRS-LATTS, University Paris-Est, Paris, France

    Joel Ruet

Authors
  1. Xavier Richet
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  2. Joel Ruet
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Correspondence to Xavier Richet.

Additional information

The paper is based on the findings from a research conducted in China and India: globalisation and opening markets in developing countries and its impact on national firms and public governance: the case of China and India supported by the EU. The authors wish to thank their colleagues from the Sino-Indo-European team set up to conduct this research and participants at seminars held in New Delhi, Beijing, Krakow, Paris where earlier versions of this paper were presented.

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Richet, X., Ruet, J. The Chinese and Indian Automobile Industry in Perspective: Technology Appropriation, Catching-up and Development. Transit Stud Rev 15, 447–465 (2008). https://doi.org/10.1007/s11300-008-0019-0

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  • DOI: https://doi.org/10.1007/s11300-008-0019-0

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