China's Great Economic Transformation
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This landmark study provides an integrated analysis of China's unexpected economic boom of the past three decades. The authors combine deep China expertise with broad disciplinary knowledge to explain China's remarkable combination of high-speed growth and deeply flawed institutions. Their work exposes the mechanisms underpinning the origin and expansion of China's great boom. Penetrating studies track the rise of Chinese capabilities in manufacturing and in research and development. The authors probe both achievements and weaknesses across many sectors, including China's fiscal, legal, and financial institutions. The book shows how an intricate minuet combining China's political system with sectoral development, globalization, resource transfers across geographic and economic space, and partial system reform delivered an astonishing and unprecedented growth spurt. The volume chronicles many shortcomings, but concludes that China's economic expansion is likely to continue during the coming decades.
central to understanding the second demographic dividend. The lifetime budget constraint implies that the current life cycle wealth of an individual, a cohort, or a population must equal the present value of the future stream of consumption less P1: KNP 0521885577c05 CUNY1247/Brandt & Rawski 162 978 0 521 88557 7 February 15, 2008 17:40 WANG Feng and Andrew Mason the present value of the future stream of labor income.24 In the absence of intergenerational transfers (familial support,
governments went ahead rapidly with what I have called Type I reforms (Svejnar, 2002, 2007). These reforms typically focused on macrostabilization, price liberalization, and abandoning central planning. The macroeconomic strategy emphasized restrictive fiscal and monetary policies, income policies (wage controls), and often also a fixed exchange rate. The microstrategy consisted of price liberalization, dismantling the Soviet bloc trading area, the Council for Mutual Economic Assistance (CMEA),
government pressure to sell low-price grain was undermining farmer incentives to produce and might create a drop in output, as had occurred in the Great Leap Forward (Zhao, 1988, pp. 144–168). During 1979, Chen Yun, the key economic policymaker among the veterans, proposed placing agriculture first in the planning process and reducing the economywide investment rate, thereby creating the context for a dramatic shift in resource allocation toward the farm sector. Second, the regime committed to
estimated number of temporary migrants at 120 million, up from 88.5 million in 1995 (Liang, 2003). Similarly, the annual population sample survey conducted by China’s National Bureau of Statistics reports that in 2002, one out of every ten persons was living in a place (town, township, or subdistrict) that was not the location of the person’s household registration. In the economically most dynamic regions of China, such as Guangdong, Fujian, Shanghai, and Beijing, 20–30 percent of current
by mainstream economists. The architects of China’s population policy can point, however, to the post-reform economic record as evidence of the success of the policy. This assertion can be questioned on two grounds. The first, discussed earlier, is the extent to which the transition to low fertility was accelerated by the one-child policy. The second, considered in this section, is the extent to which fertility decline, the slowdown in population growth, and changes in age structure contributed