Industrial Dynamics in China and India: Firms, Clusters, and Different Growth Paths

282 Pages·2011·2.145 MB·English

by  Moriki Ohara, M. Vijayabaskar, Hong Lin (eds.)

Industrial Dynamics
in China and India
Firms, Clusters, and Different Growth Paths
Edited by Moriki Ohara,
M. Vijayabaskar
and Hong Lin
Industrial Dynamics in China and India
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Industrial Dynamics in
China and India
Firms, Clusters, and Different
Growth Paths
Edited by
Moriki Ohara
Associate Professor, Ryukoku University
M. Vijayabaskar
Assistant Professor, Madras Institute of Development Studies
Hong Lin
Director, Shandong Institute for East-Asia Studies
Palgrave
macmillan IDE-JETRO
© Institute of Developing Economies (IDE), JETRO 2011
Softcover reprint of the hardcover 1st edition 2011 978-0-230-29878-1
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ISBN 978-1-349-33504-6 ISBN 978-0-230-30830-5 (eBook)
DOI 10.1057/9780230308305
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Library of Congress Cataloging-in-Publication Data
Industrial dynamics in China and India : fi rms, clusters, and different
growth paths / edited by Moriki Ohara, M. Vijayabaskar, Hong Lin.
p. cm.
Includes index.
1. Industries – China. 2. Industries – India. 3. Technological innovations –
Economic aspects – China. 4. Technological innovations – Economic
aspects – India. 5. Industrial policy – China. 6. Industrial policy – India.
I. Ohara, Moriki, 1967– II. Vijayabaskar, M. III. Lin, Hong.
HC427.I523 2011
338.0951—dc22 2011012448
Contents
List of Tables vii
List of Figures ix
List of Abbreviations xi
Acknowledgements xv
Notes on Contributors xvii
I ntroduction: Different Competition, Different
Industrial Dynamics 1
Moriki Ohara
Part I Firms and Competition
1 C ompetition and Management in the Manufacturing
Sector in China and India: A Statistical Overview 19
Moriki Ohara and Hong Lin
2 C hina and India’s Electrical and Electronics Industries:
A Comparison between Market Structures 40
Koichiro Kimura
Part II Capability Formation: Skills, Technology,
and Innovation
3 T echnology Acquisition by Indigenous Firms:
The Case of the Chinese and Indian Automobile Industries 63
Tomoo Marukawa
4 C apability-Building via Interfi rm Relationship and
In-House Employment in China and India:
A Comparative Study of the Motorcycle Industry 80
Moriki Ohara
5 S kill Formation through Education and Training:
A Comparison of China and India 107
Yoko Asuyama
6 T he Institutional Milieu of Skill Formation: A Comparative
Study of Two Textile Regions in India and China 135
M. Vijayabaskar and J. Jeyaranjan
v
vi Contents
Part III The Role of the State and the
Global Production Network
7 Two Tales of Agro-Industrial Transformation:
State Capacity in China’s and India’s Textile Industries 157
Mark P. Dallas
8 Local Finance and Governments in the Economic
Development of China and India: Distribution and
Economic Effi ciency 180
Kai Kajitani
9 The Electric Vehicle Industry in China and India:
The Role of Governments for Industry Development 203
Martin Lockström, Thomas Callarman, and Liu Lei
10 The Role of Local Government in Software and ITES
Offshoring in Dalian, China 226
Hiromi Hinata
11 T he Role of Standards in Technology-Driven
Commodity Chains: The Information and
Communication Technology Services Industry in
Dalian, China, and Bangalore, India 237
Balaji Parthasarathy and Bharath M. Palavalli
Index 259
Tables
I.1 Relative contrast of competition, management, and
environments in modernized sectors 7
I.2 Hierarchic nature of the labor market in China and India:
average monthly wage rate in various industrial clusters 13
1.1 Concentration of market share and the number of firms
producing various products 24
1.2 Size comparison of Chinese and Indian manufacturers 28
2.1 Electrical and electronics industries 44
2.2 Market share in China, 1993–2005 46
2.3 Market share in India, 1992/93–2006/07 48
2.4 Firm size in China, 1991–1998 51
2.5 Production volume in India, 1979–1996 54
2.6 Firm size in India, 1992/93–2000/01 55
3.1 Domestic-brand cars in China’s automobile industry 66
3.2 Top car manufacturers in China 67
3.3 Production volume of major automobile manufacturers
in India 69
3.4 Chery’s automobile production and exports 71
3.5 Geely’s automobile production and exports 72
3.6 Tata Motors’ automobile production and exports 77
4.1 Motorcycle manufacturers in China and India, 2006–2007 82
4.2 Outsourcing structures of Asian motorcycle makers 86
4.3 Multisourcing and dependency rate 89
4.4 Risk sharing 90
5.1 Distribution of employed persons by level of education, 2005 110
5.2 Skill flows from general and vocational education
in China, 2005 112
5.3 Skill flows from general and vocational education in
India, 2005–2006 113
5.4 Vocational training scheme of China, 2005 114
5.5 Vocational training scheme of India, around 2005 115
vii
viii List of Tables
5.6 Compound annual growth rate of formal employment 126
6.1 Shares in exports of cotton, textiles and clothing 139
8.1 Interregional risk-sharing in China 187
8.2 Economic data of major states in India 188
9.1 Chinese OEMs involved in EV development 205
9.2 China emission standards 206
9.3 T he electric vehicle projects of the “863” program in the
11th Five-Year Plan 209
9.4 Details of the support provided by local governments
under the “Ten Cities, One Thousand Cars” policy 210
9.5 Indian OEMs involved in EV development 214
9.6 Indian emission standards 215
9.7 Comparison of EV development in India and China 217
10.1 Top three Indian and Chinese software
and ITES export companies 228
11.1 IDC’s global delivery index – Asia Pacific, 2007–2008 238
11.2 Leading ICT service producing locations in
China, 2002–2008 240
11.3 National and local significance of Dalian’s
ICT services industry 241
11.4 Leading ICT services exporting locations in
China, 2002–2008 242
11.5 S hare of exports in leading ICT service producing
locations in China, 2002–2008 243
11.6 ICT service firms in Dalian and their
characteristics, 2000–2008 248
Figures
I.1 Structure and size of domestic market and competitors –
China, 2000, and India, 2005 8
1.1 Ratio of the manufacturing sector in total
employment 21
1.2 Productivity gap between agricultural and nonagricultural
industries 22
1.3 Turnover ratio, manufacturing sector in
China and India 29
1.4 Changes in the capital–labor ratio in Asian economies 30
1.5 Employment structure by firm size: manufacturing
sector 32
1.6 Average KL ratio of different-sized firms:
manufacturing sector 32
1.7 Different KL ratios within and between subsectors of
the manufacturing industry 33
1.8 Technological gap between firms of different sizes,
automobile industry 34
1.9 Correlation between firm size and engineer ratio 35
2.1 Industrial structures: China, 1980–2005, and India,
1980/01–2005/06 43
3.1 Production volume of major automobile producing
countries 63
3.2 Structure of India’s automobile production in 2008 68
4.1 Share of the top three motorcycle manufacturers in
selected Asian economies 83
5.1 Student enrollment by education level in China 119
5.2 Educational expenditure allocation of India by
level of education 120
7.1 Major raw-fiber producers, 1999–2000 158
7.2 Share of total manufacturing costs of similar count
cotton yarn, 1997–1998 163
7.3 Average monthly cotton prices: China, India and global,
September 1999–April 2007 165
ix