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The role of the state in making a national market: The evolution of the grain market in China (1978-2000)

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  • Wubiao Zhou
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    Abstract

    Purpose – The paper aims to examine Karl Polanyi's view of market evolution in the context of the emergence of a national grain market in China's transition economy. Design/methodology/approach – The dataset used includes information about inter-provincial grain trade on China's grain market from November 1999 to October 2000. A priori blockmodelling method is used for hypothesis testing. Findings – This paper finds that a partially integrated national grain market had emerged at the beginning of the twenty-first century in China in spite of local protectionism. Additionally, the emergence of this market is found to be partly a result of the reform-oriented state's attempt to create national wholesale grain markets. Originality/value – The findings of the paper might have implications for market development in both China and other transition economies.

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    Bibliographic Info

    Article provided by Emerald Group Publishing in its journal China Agricultural Economic Review.

    Volume (Year): 2 (2010)
    Issue (Month): 3 (September)
    Pages: 276-297

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    Handle: RePEc:eme:caerpp:v:2:y:2010:i:3:p:276-297

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    Related research

    Keywords: China; Crops; Economic change; National markets;

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    References

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    1. Kneisel, Ernst, 1954. "“The Evolution of The English Corn Market”," The Journal of Economic History, Cambridge University Press, vol. 14(01), pages 46-52, December.
    2. Chen, Jing & Rozelle, Scott & Carter, Colin A., 1999. "Grain Price Stability And Farmer Decision Making In China," 1999 Annual meeting, August 8-11, Nashville, TN 21538, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. A. J. S. Gibson & T. C. Smout, 1995. "Regional prices and market regions: the evolution of the early modern Scottish grain market," Economic History Review, Economic History Society, vol. 48(2), pages 258-282, 05.
    4. Christopher Findlay, 1997. "Grain Sector Reform in China," Chinese Economies Research Centre (CERC) Working Papers 1997-01, University of Adelaide, Chinese Economies Research Centre.
    5. Anonymous, 1998. "Grain Market Reform in China: Global Implications," Technical Reports 113816, Australian Centre for International Agricultural Research.
    6. Victor Nee, 2000. "The Role of the State in Making a Market Economy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(1), pages 64-, March.
    7. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    8. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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