Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance

This paper estimates the causal effect of technology and knowledge transfers on early industrial development using the Sino-Soviet Alliance of the 1950s as a natural experiment. Between 1950 and 1957, the Soviet Union supported the “156 Projects” — 139 approved civil projects for constructing technologically advanced, large-scale, capital-intensive industrial facilities in China. The intended program comprised two components: a “basic” transfer of Soviet state-of-the-art machinery and equipment (including blueprints, site surveys, and plant construction assistance), and an “advanced” know-how transfer involving Soviet experts residing in Chinese plants for roughly three years to train engineers and production supervisors in organizational, technological, and planning methods. Total investment amounted to approximately $80 billion in 2020 figures (45.7% of Chinese GDP in 1949).

Michela Giorcelli | Macro Paper Warehouse

Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance