Why Is Policy Inefficient:A Comparative Study Of China's Automobile Industry Policy From The Perspective Of Political Economy

With China's economy entering the new normal,the topic of economic system reform is coming in people's sight.It is against this background that the debate between Lin Yifu and Zhang Weiying on industrial policy takes place.It is interesting to see their arguments come from East Asia.Lin Yifu asserts that industrial policy is the key to distinguishing the new industrialized economies in East Asia from the vast majority of "mediocre" late-developed economies.The miracle of East Asia shows that industrial policy is driving powerfuly the catch-up industrialization in late-developed countries.Zhang Weiying,denied the feasibility of industrial policy based on the case of failed industrial policy in East Asia,denouncing it as "a planned economy in disguise".In the view of this dissertation,it seems that this is a "mistake-finding" debate.With regard to industrial policy,the point of "correctness" should not be whether industrial policy will succeed or not,but under what conditions industrial policy is likely to succeed or fail.Since 1978,China has taken marketization as the goal of economic system reform.In order to allow the government to continue to guide the economy under the conditions of market economy,China began to take industrial policy as the main policy means and tools to guide economic development,after learning from Japan.In terms of the automobile industry policies,China has issued three comprehensive policies at the level of the central government so far,namely "the Formal Policy on Development of Automotive Industry" promulgated in 1994,the "Policy on Development of Automotive Industry" published in 2004,and "Plan on Adjusting and Revitalizing the Auto Industry" issued in 2009.In addition,China has also introduced a number of supporting measures at the local level,which have constructed a huge and complex automobile industry policy system,and become the policy basis for the government to guide the development of this industry.In this dissertation,First Automobile Work shop(FAW)and Geely are taken as samples to compare their performance in independent brand and internationalization construction,and the actual effect of China's automobile industry policy is evaluated.Despite a beneficiary of industrial policy,"FAW" has not delivered satisfactory performance according to the above two indicators;as a private enterprise,Geely,although rarely can be "favored" by the policy,has excelled and achieved impressive results.This thesis discusses the system scenarios nested in China's automobile industry policy,and regards it as an important factor affecting the success or failure of industrial policy,based on the theory of Developmental State.This thesis highlights the possible influence on the relationship between the central government and local government,and the Government-business relationship on the implementation effect of China's automobile industry policy.It also explains the institutional reasons why China's automobile industry policy fails to play its due role,and then puts forward the ideas and methods for optimizing China's industrial policy,including the shifts from selective industrial policy to functional one,from industry to technology,and from the supply side of the industry to the demand side.