Abstract
It is true that the government plays important roles in the process of China's economic growth. However, because the advocates of theories of Chinese economic model and Chinese State Capitalism fail to provide an applicable analytical framework, the roles of government are exaggerated. Inspired by the reinterpretation of James Abegglen's research about so-called Japan. Inc, this essay aims to understand China's economic growth and the roles of government by discussing the relationship between the governmental capacity and corporate capability. Concretely, after classifying the governmental capacity into imposing capacity and inducing capacity and dividing the corporate capability into production capacity and technical capability separately, we analyze how these kinds of governmental capacity and corporate capability interact in different sectors. The main findings can be summarized as the following three points. First, compared to SOE, for private firms or multinational firms, the eff ect of governmental capacity over corporate capability is limited. Second, although the governmental capacity shapes the corporate capability to a large extend in the non manufacturing sector, the eff ect of governmental capacity over corporate capability is not crucial in the manufacturing sector. Third, in the manufacturing sector, the governmental capacity contributes to the formation of production capacity, but the linkage between intervention and accumulation of technical capability is weak.
