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Groping for Stones to Cross the River versus Coordinated Policy Reforms: The Case of Two Reforms in China

  • Ran Tao
  • Zhigang Xu
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    China's economic transition has reached a stage where the past experimental approach is no longer sufficient. Future policy reforms need to be carried out in a holistic rather than a piecemeal manner. This paper analyzes the reforms of two related institutions in China: the household registration system and the rural land system. We argue that further institutional changes warrant national initiatives and coordinated reforms rather than merely drawing on local pilot experiences. A holistic policy package that can simultaneously promote the reforms of the household registration and the rural land system is proposed. We use fiscal simulations to illustrate the feasibility of the proposed holistic policy package.

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    Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

    Volume (Year): 9 (2006)
    Issue (Month): 3 ()
    Pages: 177-201

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    Handle: RePEc:taf:jpolrf:v:9:y:2006:i:3:p:177-201
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    1. Dewatripont, M & Roland, G, 1992. "The Virtues of Gradualism and Legitimacy in the Transition to a Market Economy," Economic Journal, Royal Economic Society, vol. 102(411), pages 291-300, March.
    2. de Brauw, Alan & Huang, Jikun & Rozelle, Scott & Zhang, Linxiu & Zhang, Yigang, 2002. "The Evolution of China's Rural Labor Markets During the Reforms," Journal of Comparative Economics, Elsevier, vol. 30(2), pages 329-353, June.
    3. G�rard Roland, 2002. "The Political Economy of Transition," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 29-50, Winter.
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