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Economic Development and Transition

Author

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  • Lin,Justin Yifu

Abstract

In Economic Development and Transition, renowned development economist Justin Yifu Lin argues that economic performance in developing countries depends largely on government strategy. If the government plays a facilitating role, enabling firms to exploit the economy's comparative advantages, its economy will develop successfully. However, governments in most developing countries attempt to promote industries that go against their comparative advantages by creating various kinds of distortion to protect nonviable firms in priority industries. Failing to recognize the original intention of many distortions, most governments in transition economies attempt to eliminate those distortions without addressing firms' viability problems, causing economic performance to deteriorate in their transition process. Governments in successful transition economies adopt a pragmatic dual-track approach that encourages firms to enter sectors that were suppressed previously and gives necessary support to firms in priority industries before their viability issue is addressed.

Suggested Citation

  • Lin,Justin Yifu, 2009. "Economic Development and Transition," Cambridge Books, Cambridge University Press, number 9780521514521, April.
  • Handle: RePEc:cup:cbooks:9780521514521
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    Cited by:

    1. Julan Du & Hongsheng Fang & Xiangrong Jin, 2013. "Chinese Political and Economic Governance System and the Imbalance between Consumption and Investment," Working Papers 232013, Hong Kong Institute for Monetary Research.
    2. Harrison, Ann E. & Lin, Justin Yifu & Xu, Lixin Colin, 2014. "Explaining Africa’s (Dis)advantage," World Development, Elsevier, vol. 63(C), pages 59-77.
    3. Piveteau, Alain & Rougier, Éric, 2010. "Émergence, l’économie du développement interpellée," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 7.
    4. Ben Fine & Elisa Van Waeyenberge, 2013. "A Paradigm Shift that Never Will Be?: Justin Lin’s New Structural Economics," Working Papers 179, Department of Economics, SOAS, University of London, UK.
    5. Fahad Hassan Khan, 2014. "From revenues to democracy?," Departmental Working Papers 2014-25, The Australian National University, Arndt-Corden Department of Economics.
    6. Dairabayeva Karlygash & Carayannis Elias, 2014. "Targeted Trade-Related Policies and Manufacturing Firm Productivity in Eastern Europe and Central Asia: Effect of Corruption," Global Economy Journal, De Gruyter, vol. 14(2), pages 1-22, April.
    7. Justin Yifu LIN & Xifang SUN, 2009. "Banking structure and economic growth: Evidence from China," Frontiers of Economics in China, Higher Education Press, vol. 4(4), pages 479-504, December.
    8. Gaasbeek, P.B. & van Bergeijk, P.A.G., 2011. "Chinese competition," ISS Working Papers - General Series 22630, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    9. Miaojie Yu, 2010. "Processing Trade, Firm's Productivity, and Tariff Reductions : Evidence from Chinese Products," Macroeconomics Working Papers 22799, East Asian Bureau of Economic Research.
    10. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 2," World Bank Other Operational Studies 12872, The World Bank.
    11. Lin, Justin Yifu & Vu, Khuong Minh, 2014. "The practice of industrial policy: Lessons for Africa: Co-ordination through an Asian lens," WIDER Working Paper Series 156, World Institute for Development Economic Research (UNU-WIDER).
    12. Yao, Yang, 2014. "The Chinese Growth Miracle," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 943-1031 Elsevier.
    13. Abdul Jabbar Abdullah & Hristos Doucouliagos & Elizabeth Manning, 2015. "Are regional incomes in Malaysia converging?," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 69-94, November.
    14. World Bank, 2010. "Albania - The New Growth Agenda : A Country Economic Memorandum," World Bank Other Operational Studies 2935, The World Bank.
    15. repec:eee:streco:v:41:y:2017:i:c:p:64-77 is not listed on IDEAS
    16. Wignaraja, Ganeshan, 2012. "Do Exporting Firms in the People’s Republic of China Innovate?," ADBI Working Papers 365, Asian Development Bank Institute.
    17. repec:rdg:wpaper:em-dp2011-02 is not listed on IDEAS
    18. repec:eee:chieco:v:48:y:2018:i:c:p:170-185 is not listed on IDEAS
    19. Chen, Bo & Ma, Hong & Xu, Yuan, 2014. "Measuring China’s trade liberalization: A generalized measure of trade restrictiveness index," Journal of Comparative Economics, Elsevier, vol. 42(4), pages 994-1006.
    20. World Bank, 2010. "Bhutan Investment Climate Assessment Report : Vitalizing the Private Sector, Creating Jobs, Volume 1. Summary Report," World Bank Other Operational Studies 12871, The World Bank.

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