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Crisis and selective adaptation in a Chinese prefecture between 2008 and 2010: a survey among industrial enterprises

Author

Listed:
  • Maria Csanadi

    (Institute of Economics Research Centre for Economic and Regional Studies Hungarian Academy of Sciences)

  • Liu Xiaoxuan

    (Microeconomic Research Office Chinese Academy of Social Sciences)

Abstract

This paper demonstrates that despite substantial transformation towards a market economy, occasions for increased state intervention will mobilize the characteristics of redistribution in party-state systems. Such state intervention occurred through the introduction of the stimulus package in 2008 to compensate the impact of the global crisis. The present paper reflects on the impact of the crisis, the allocation of resources to enterprises in the manufacturing sector in one Chinese city based on the analysis of 445 enterprise questionnaires selected through random sampling. Results show that interventions activated the usual allocation priorities and political motivations of economic behavior of distributors and economic actors in party-states: selective distribution of resources for large and state-owned enterprises with strong ties to government institutions and banks, motivating drive for growth and connections rather than market behavior.

Suggested Citation

  • Maria Csanadi & Liu Xiaoxuan, 2012. "Crisis and selective adaptation in a Chinese prefecture between 2008 and 2010: a survey among industrial enterprises," CERS-IE WORKING PAPERS 1235, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:1235
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    More about this item

    Keywords

    party-state model; short term shocks; adaptation; system transformation; global crisis; overheating; spatial disparities;
    All these keywords.

    JEL classification:

    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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