China and the New Industrial Revolution

This is a hugely important and timely paper on the fast-changing Chinese economy which is perfect for second year Economics students with a real interest in the Chinese transition debate. There is a wealth of detail on structural changes in the Chinese economy - for example, evidence of diminishing returns to capital. And this is a superb paper on the continued importance of manufacturing not just to China but in the world economy.

"As the labour-intensive strategy based on cheap labour has run up against its limits, policy makers have devised plans that focus on industrial upgrading, promote indigenous innovations and establish national brands. This way China would avoid the middle-income trap and eventually become an innovative powerhouse."