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The Process of China's Market Transition (1978-1998): The Evolutionary, Historical, and Comparative Perspectives

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  • Yingyi Qian
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    Abstract

    China's transition to the market followed a different path from those countries in eastern Europe and the former Soviet Union. This paper tells the story of this transition process. In the first stage (1979-1993), the system was reformed incrementally to improve incentives and increase the scope of the market. In the second stage (from 1994), new institutions supporting the market are being built before old institutions have been destroyed. The paper traces the roots to the Chinese planning system since 1958, which differed significantly from the Soviet model. The successful Chinese path of transition challenges the conventional wisdom but fits Popper's notion of "piecemeal social engineering."

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    Bibliographic Info

    Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

    Volume (Year): 156 (2000)
    Issue (Month): 1 (March)
    Pages: 151-

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    Handle: RePEc:mhr:jinste:urn:sici:0932-4569(200003)156:1_151:tpocmt_2.0.tx_2-l

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    Cited by:
    1. Carsten A Holz, 2005. "China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow," Development and Comp Systems 0512002, EconWPA.
    2. Chen, Charles J.P. & Li, Zengquan & Su, Xijia & Sun, Zheng, 2011. "Rent-seeking incentives, corporate political connections, and the control structure of private firms: Chinese evidence," Journal of Corporate Finance, Elsevier, vol. 17(2), pages 229-243, April.
    3. Krug, B. & Hendrischke, H., 2001. "The Emergence of a Private Business Sector in China," ERIM Report Series Research in Management ERS-2001-03-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    4. Zhou, Wubiao, 2009. "Bank Financing in China's Private Sector: The Payoffs of Political Capital," World Development, Elsevier, vol. 37(4), pages 787-799, April.
    5. Noland, Marcus & Son, Hyun H., 2012. "Editors’ introduction transitional economies: Progress and pitfalls," Journal of Asian Economics, Elsevier, vol. 23(2), pages 107-110.
    6. Shah, Anwar, 2005. "Fiscal decentralization and fiscal performance," Policy Research Working Paper Series 3786, The World Bank.
    7. Krug, B. & Belschak, F.D., 2001. "Combining Commerce and Culture," ERIM Report Series Research in Management ERS-2001-84-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
    8. Chi, Wei & Wang, Yijiang, 2007. "Ownership, Performance and Executive Turnover," MPRA Paper 3545, University Library of Munich, Germany.
    9. Hongyun Han, 2010. "Trends in educational assortative marriage in China from 1970 to 2000," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 22(24), pages 733-770, April.
    10. Giovanni Dosi & Jiasu Lei & Xiaodan Yu, 2013. "Institutional Change and Productivity Growth in China's Manufacturing 1998-2007: the Microeconomics of Creative Restructuring," LEM Papers Series 2013/07, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    11. Zhang, Ying & Duysters, Geert, 2010. "Entrepreneurship Development and the Role of Economic Transition in Entrepreneurial Activities in China," MERIT Working Papers 036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    12. Kefei You & Nicholas Sarantis, 2013. "Structural breaks, rural transformation and total factor productivity growth in China," Journal of Productivity Analysis, Springer, vol. 39(3), pages 231-242, June.
    13. Krug, B. & Polos, L., 2000. "The Strawberry Growth Underneath the Nettle: the emergence of entrepreneurs in China," ERIM Report Series Research in Management ERS-2000-34-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.

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