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the Transition Process in China: A theoretic and empirical Study

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Author Info

  • Chen Pu

    (University Bielefeld)

  • Hsiao Chihying

    (University Bielefeld)

Abstract

In this paper we analyse the driving forces of the transition from plan to market in China. A two segments and two sectors model is constructed to take into account the particular economic situation in China during the transition process: a large agricultural sector and an industrial sector; a large centrally planned segment and a market segment. The transition from plan to market is described by the increasing share the market segment in the whole economy on the one hand and the forced adjustment of the behaviour of the planned segment to the market situation on the other. Thus this model provides a well structured way to understand the complex phenomenon during the transition process and to analysis the driving forces of the transition process.

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File URL: http://128.118.178.162/eps/dev/papers/0507/0507007.pdf
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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0507007.

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Length: 74 pages
Date of creation: 28 Jul 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0507007

Note: Type of Document - pdf; pages: 74
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Web page: http://128.118.178.162

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Keywords: Transition; Economic reform; Industrialization; Chinese economy;

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  1. Ericson, Richard E., 1984. "The "second economy" and resource allocation under central planning," Journal of Comparative Economics, Elsevier, vol. 8(1), pages 1-24, March.
  2. Jinglian, Wu & Renwei, Zhao, 1987. "The dual pricing system in China's industry," Journal of Comparative Economics, Elsevier, vol. 11(3), pages 309-318, September.
  3. Panagariya, Arvind, 1990. "The parallel market in centrally planned economies: A dynamic analysis," Journal of Comparative Economics, Elsevier, vol. 14(3), pages 353-371, September.
  4. Charemza, Wojciech & Quandt, Richard E, 1982. "Models and Estimation of Disequilibrium for Centrally Planned Economies," Review of Economic Studies, Wiley Blackwell, vol. 49(1), pages 109-16, January.
  5. Woo, W.T., 1993. "The Art of Reforming Centrally-Planned Economies: Comparing China, Poland and Russia," Papers 93-09, California Davis - Institute of Governmental Affairs.
  6. Jefferson, Gary H. & Xu, Wenyi, 1991. "The impact of reform on socialist enterprises in transition: Structure, conduct, and performance in Chinese industry," Journal of Comparative Economics, Elsevier, vol. 15(1), pages 45-64, March.
  7. Peter Murrell, 1991. "Can Neoclassical Economics Underpin the Reform of Centrally Planned Economies?," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 59-76, Fall.
  8. Zhou, Huizhong, 1992. "An explanation of coexistence of taut planning and hidden reserves in centrally planned economies," Journal of Comparative Economics, Elsevier, vol. 16(3), pages 456-478, September.
  9. Naughton, Barry, 1990. "China's experience with guidance planning," Journal of Comparative Economics, Elsevier, vol. 14(4), pages 743-767, December.
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Cited by:
  1. Pu Chen & Chih-Ying Hsiao, 2007. "The Transition Process In China: An Economic Development Perspective," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 32(2), pages 113-134, December.

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