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The role of the state in making a national market

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  • Wubiao Zhou

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.

Suggested Citation

  • Wubiao Zhou, 2010. "The role of the state in making a national market," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 2(3), pages 276-297, September.
    • Handle: RePEc:eme:caerpp:v:2:y:2010:i:3:p:276-297
    DOI: 10.1108/17561371011078426
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    References listed on IDEAS

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    1. 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).
    2. 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 1-64, March.
    3. 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.
    4. 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, May.
    5. repec:cup:jechis:v:14:y:1954:i:01:p:46-52_06 is not listed on IDEAS
    6. Scott Rozelle & Albert Park & Jikun Huang & Hehui Jin, 1997. "Liberalization and Rural Market Integration in China," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 635-642.
    7. Christopher Findlay, 1997. "Grain Sector Reform in China," Chinese Economies Research Centre (CERC) Working Papers 1997-01, University of Adelaide, Chinese Economies Research Centre.
    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.
    9. Unknown, 1998. "Grain Market Reform in China: Global Implications," Technical Reports 113816, Australian Centre for International Agricultural Research.
    10. Weingast, Barry R, 1995. "The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 11(1), pages 1-31, April.
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    Cited by:

    1. Wubiao Zhou, 2014. "Regional institutional development, political connections, and entrepreneurial performance in China’s transition economy," Small Business Economics, Springer, vol. 43(1), pages 161-181, June.

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