Thinking globally, acting locally: Local governments, industrial sectors, and development in China

This article argues that studies of late-development should be altered in two respects: the unit of analysis should increasingly be the subnational economy, and an understanding of economic outcomes should be sector specific. Variation in the developmental outcomes of particular sectors can be best understood by analyzing the fit between local institutions and firms within a particular sector: The,specific development needs of firms vary across sectors, and the institutional structures required to meet firm-level needs are local more often than national. The importance of regional and sectoral variation is demonstrated by comparing Beijing and Shanghai in two sectors.