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THE RISE OF THE WENZHOU MODEL AND ITS INFLUENCE ON CHINA'S DEVELOPMENT 3

STRATEGY 3

ACKNOWLEDGEMENT 3

ABBREVIATIONS 5

PART ONE 7

CHAPTER ONE LITERATURE REVIEW AND RESEARCH FRAMEWORK:INSTITUTIONS,DEVELOPMENT AND TRANSITION 9

1.1 Introduction 9

1.2 Different approaches to the study of institutions 10

1.3 Issues on development and transition 22

1.4 Impact of globalization 31

1.5 Private sector development in China 34

1.6 The research framework 40

CHAPTER TWO THE WENZHOU MODEL OF DEVELOPMENT 50

2.1 Introduction 50

2.2 Present Wenzhou as a general background 51

2.3 Definition and features of the Wenzhou Model 61

2.4 The angle of local economic development 64

2.5 The angle of institutional change 69

2.6 The angle from international scholars 73

2.7 Research highlights from the author 78

2.8 Summary 82

PART TWO 85

CHAPTER THREE INSTITUTIONS CHANGE TO PROTECT MARKET AND PRIVATE PROPERTY RIGHTS 87

3.1 Introduction 87

3.2 HRS as the direction of change in land institutions 89

3.3 The rise and fall of TVEs 92

3.4 The case in Wenzhou 103

3.5 Summary 113

CHAPTER FOUR A PARADIGM FOR LOCAL INUSTRIALIZATION 115

4.1 Introduction 115

4.2 A contrast between Wenzhou and Sunan 117

4.3 A comparison with European classical industrialization 120

4.4 Features and symbols 125

4.5 Prospects for further industrialization 132

4.6 Barriers ahead 136

4.7 Summary 141

CHAPTER FIVE FROM QUASI DEMAND TO DEMAND-INDUCED INSTITUTIONAL CHANGE 144

5.1 Introduction 144

5.2 Basic institutional conditions 146

5.3 A quasi-demand induced institutional change(prior to 1999) 150

5.4 Demand induced institutional change(after 1999) 160

5.5 Summary 165

PART THREE 169

CHAPTER SIX INNOVATION AND QUALITY IMPROVEMENT:A CASE STUDY ON THE DEVELOPMENT OF THE LOW-VOLTAGE ELECTRIC APPLIANCES INDUSTRY IN WENZHOU 171

6.1 Introduction 171

6.2 The need to upgrade the product quality 172

6.3 The Development of marketplaces in Wenzhou 176

6.4 Basic characteristics of sample firms 178

6.5 Processes of quality upgrading 180

6.6 Summary 185

CHAPTER SEVEN FROM HOUSEHOLD WORKSHOP TO MODERN ENTERPRISE:A CASE STUDY ON CHINT GROUP 187

7.1 Introduction 187

7.2 A Glance at Chint Group 189

7.3 Growth of Chint:reorganizing and taking over small enterprises 193

7.4 Change of property rights and decision-making mechanism 201

7.5 Innovations in marketing,product development and human resources 205

7.6 Summary 209

PART FOUR 211

CHAPTER EIGHT CONCLUSIONS 213

81 Introduction 213

8.2 Assessing the Wenzhou Model of development:"reform from below" 213

8.3 Assessing private sector development policies in the reform era 221

8.4 Challenges ahead 231

8.5 Reassessing development and transition 237

8.6 Conclusion 245

APPENDIX 248

BIBLIOGRAPHIES 254

WHAT IS THE SIGNIFICANCE OF CHINA'S MANUFACTURING INDUSTRY DEVELOPMENT TO CONTEMPORARY DEVELOPMENT THEORY——GLOBALIZATlON AND MANUFACTURlNG lN CHINACHAPTER ONE INTRODUCTION 281

CHAPTER TWO GLOBALIZATION AND NEW POSTULATIONS ON CONTEMPORARY DEVELOPMENT 283

2.1 Globalization:the major trend of contemporary development 283

2.2 Strategic readjustment for development:enhancing competitiveness via opening 285

2.3 Change in the role of state and mode of governance 288

CHAPTER THREE GLOBALIZATION OF MANUFACTURING AND RECENT MANUFACTURING DEVELOPMENT IN CHINA 290

3.1 Globalization of manufacturing 290

3.2 Recent manufacturing development in China 293

CHAPTER FOUR A CASE STUDY ON AUTO INDUSTRY IN CHINA 307

4.1 Global business revolution in auto industry 307

4.2 Realitv of auto industry in China 309

4.3 New development strategy and mode of governance 313

4.4 Significance of the readjustment 316

4.5 Summary 318

CHAPTER FIVE LESSONS OF CHINA'S MANUFACTURING DEVELOPMENT FOR CONTEMPORARY DEVELOPMENT THEORY 319

5.1 Contemporary development theory and developing nations 319

5.2 Lessons from China's manufacturing development 323

CHAPTER SIX CONCLUSION 330

REFERENCES 332