Local government planners cannot guarantee revival of Jilin economy

A RESEARCH TEAM led by Justin Yifu Lin, an economist at Peking University and former senior vice-president of the World Bank, has suggested Northeast China's Jilin province, a heavy industry base since the 1930s, shift focus to developing light industry. Beijing News comments:

Lin's team has drafted a report for the Jilin provincial government, which says Jilin has great potential and comparative advantage in developing light industry, and urges it to improve the infrastructure related to light industry and to lower transaction costs.

The report's analysis does not seem to support its conclusion, though, because it is difficult to say whether a place enjoys comparative advantage in developing certain types of industries before it actually develops them. The report draws its conclusion by citing only the labor cost, per capita GDP and workers' population in the province, and the share of light industry in its economy, which are not the only practical factors investors would consider before investing money in the province.