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The Transition Process In China: An Economic Development Perspective

Author

Listed:
  • Pu Chen

    (Faculty of Economics, University Bielefeld)

  • Chih-Ying Hsiao

    (School of Finance and Economics, University of Technology, Sydney)

Abstract

During the last 25 years, the Chinese economy has experienced significant changes: the centrally planned economy has been reformed gradually into a market economy; the traditional agricultural economy is becoming more and more a modern industrial economy. In a dynamic two-sector-two-segment model we demonstrate that the economic reform has changed the industrialization mechanism in China. It released a decentralized industrialization process beside the centrally planned Soviet-type industrialization. This decentralized industrialization is shown to be the ultimate driving force of the transition from plan to market in China.

Suggested Citation

  • 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.
    • Handle: RePEc:jed:journl:v:32:y:2007:i:2:p:113-134
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    References listed on IDEAS

    as
    1. Woo Wing Thye, 1994. "The Art of Reforming Centrally Planned Economies: Comparing China, Poland, and Russia," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 276-308, June.
    2. Martin, Will, 1993. "Modeling the post-reform Chinese economy," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 545-579.
    3. McKinnon Ronald I., 1994. "Financial Growth and Macroeconomic Stability in China, 1978-1992: Implications for Russia and Other Transitional Economies," Journal of Comparative Economics, Elsevier, vol. 18(3), pages 438-469, June.
    4. Chen Pu & Hsiao Chihying, 2005. "the Transition Process in China: A theoretic and empirical Study," Development and Comp Systems 0507007, University Library of Munich, Germany.
    5. Zhang, Xiao-guang, 1998. "Modeling Economic Transition: A Two-Tier Price Computable General Equilibrium Model of the Chinese Economy," Journal of Policy Modeling, Elsevier, vol. 20(4), pages 483-511, August.
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    More about this item

    Keywords

    Transition; Economic Reform; Industrialization; the Chinese Economy;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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