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Pareto-Improving Economic Reforms through Dual-Track Liberalization

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Author Info
Lawrence J. Lau
Yingyi Qian
Gerard Roland

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Abstract

Pareto-improving economic reforms that also simultaneously achieve efficiency can be implemented through a strategy of "dual-track" liberalization. Its success requires the feasibility of the original plan and its continued enforcement by the state. The Chinese experience demonstrates that such a strategy works.

Keywords: economic reform, transition, political economy, dual track, China.

JEL classification: P21

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Paper provided by Stanford University, Department of Economics in its series Working Papers with number 97007.

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Handle: RePEc:wop:stanec:97007

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Related research
Keywords: economic reform; transition; political economy; dual track; China;

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Find related papers by JEL classification:
P21 - Economic Systems - - Socialist Systems and Transition Economies - - - Planning, Coordination, and Reform

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. McMillan, John & Naughton, Barry, 1992. "How to Reform a Planned Economy: Lessons from China," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 130-43, Spring.
  2. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1992. "The Transition to a Market Economy: Pitfalls of Partial Reform," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 889-906, August. [Downloadable!] (restricted)
  3. Byrd, William A., 1989. "Plan and market in the Chinese economy: A simple general equilibrium model," Journal of Comparative Economics, Elsevier, vol. 13(2), pages 177-204, June. [Downloadable!] (restricted)
  4. Sachs, J.D. & Woo, W.T., 1994. "Structural Factors in the Economic Reforms of China, Eastern Europe and the Former Soviet Union," Papers 94-01, California Davis - Institute of Governmental Affairs.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gerard Roland & Thierry Verdier, 1999. "Law Enforcement and Transition," William Davidson Institute Working Papers Series 262, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  2. Che, Jiahua & Facchini, Giovanni, 2004. "Dual Track Liberalization: With and Without Losers," Working Papers 04-0100, University of Illinois at Urbana-Champaign, College of Business. [Downloadable!]
    Other versions:
  3. Vladimir Popov, 2006. "Shock Therapy Versus Gradualism Reconsidered: Lessons From Transition Economies After 15 Years Of Reforms," Working Papers w0068, Center for Economic and Financial Research (CEFIR). [Downloadable!]
  4. Michael Mandler, 2001. "Accessible Pareto-Improvements: Using Market Information to Reform Inefficiencies," William Davidson Institute Working Papers Series 398, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  5. Lawrence J. Lau & Yingyi Qian & Gerard Roland, . "Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition," Working Papers 99010, Stanford University, Department of Economics. [Downloadable!]
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  6. C. A. Claussen, 2002. "On the Dynamic Consistency of Reform and Compensation Schemes," Journal of Policy Reform, Taylor and Francis Journals, vol. 5(3), pages 133-144, September. [Downloadable!] (restricted)
  7. Gerard Rpland, 2001. "The Political Economy of Transition," William Davidson Institute Working Papers Series 413, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  8. Jiahua Che & Giovanni Facchini, 2005. "Dual Track Reforms: With and Without Losers," Development Working Papers 204, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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  9. Guy Shaojia Liu & Haiyan Song, 2003. "A Dual-Price Demand Theory for Economies under Transition," Journal of Chinese Economic and Business Studies, Taylor and Francis Journals, vol. 1(2), pages 185-203, January. [Downloadable!] (restricted)
  10. Wei Li, 2000. "Corruption and Resource Allocation Under China's Dual Track System," Econometric Society World Congress 2000 Contributed Papers 0179, Econometric Society. [Downloadable!]
  11. Yingyi Qian, 1999. "The Institutional Foundations of China's Market Transition," Working Papers 99011, Stanford University, Department of Economics. [Downloadable!]
  12. Nazrul Islam, 2008. "Vietnam's Lesson for China: An Examination of the Sachs–Woo Hypothesis," Comparative Economic Studies, Palgrave Macmillan Journals, vol. 50(1), pages 111-157, March. [Downloadable!] (restricted)
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