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Investment and Trade Policies

In: Foreign Direct Investment in Transitional Economies

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  • Michael Du Pont

Abstract

In 1978, China began to pursue an `open-door’ policy permitting FDI into the country to modernise the economy. The government introduced new economic legislation, beginning with tentative, experimental draft laws and regulations for trial implementation. By the end of the 1980s in China, a large volume of laws, regulations and other official pronouncements had been enacted at central and local government levels. The liberalisation reforms in Poland started in 1989 when the first non-communist government began to dismantle the Stalinist model of a centralised planned economy. Unlike China, in Poland most regulations and laws were established in early 1990 at a time when a radical, comprehensive stabilisation-liberalisation programme was being launched. It focused on stabilisation, liberalisation and changes in the tax system and the social security net. A privatisation law was accepted, and many quantitative and other restrictions in foreign trade and investment were lifted in order to introduce competitive pressure on domestic enterprises freed from the command mechanism.

Suggested Citation

  • Michael Du Pont, 2000. "Investment and Trade Policies," Palgrave Macmillan Books, in: Foreign Direct Investment in Transitional Economies, chapter 4, pages 71-112, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-333-97752-1_4
    DOI: 10.1057/9780333977521_4
    as

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