Development Models and Industrial Upgrading in China and Mexico

Development Models and Industrial Upgrading in China and Mexico
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Listing Type: Publications

Gary Gereffi

This article provides a broad comparison of the development models in Latin America and China, with an emphasis on how each has changed in recent decades. China and Mexico have both pursued export-oriented development strategies in the global economy, but with different implications for national development and industrial upgrading. While Mexico has been the paradigm for the neoliberal (‘Washington consensus’) development model associated with foreign direct investment, extensive privatization, and open markets, China has attained record levels of foreign capital inflows and export growth utilizing a more strategic, statist approach to its development. In the past decade, China has surpassed Mexico in their battle for pre-eminence in the US market. One of the keys to China’s success has been a unique form of industrial organization called supply-chain cities, which has permitted it to achieve both economies of scale and scope in global value chains.

Geography: Asia | North America
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