| |
| |
Acknowledgments | |
| |
| |
Introduction | |
| |
| |
From Transition to Development | |
| |
| |
The Distance Traveled | |
| |
| |
The Dual Transition | |
| |
| |
China's Growth Performance | |
| |
| |
Becoming a "Normal" Country | |
| |
| |
China to the Future | |
| |
| |
Using This Textbook | |
| |
| |
Bibliography | |
| |
| |
| |
Legacies and Setting | |
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| |
| |
The Geographical Setting | |
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| |
Landforms | |
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| |
Climate and Water | |
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| |
Provinces and Regions | |
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| |
| |
Mineral Resources | |
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| |
| |
Conclusion: Regional Differentiation | |
| |
| |
Bibliography | |
| |
| |
| |
The Chinese Economy Before 1949 | |
| |
| |
| |
The Traditional Chinese Economy, 1127-1911 | |
| |
| |
| |
High-Productivity Traditional Agriculture | |
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| |
| |
The Commercialized Countryside | |
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| |
| |
Sophisticated Institutions | |
| |
| |
| |
Competitive Markets | |
| |
| |
| |
Small-Scale, "Bottom-Heavy" Economy | |
| |
| |
| |
Crisis of the Traditional Economy? | |
| |
| |
| |
The Failed Response to the West and Japan | |
| |
| |
| |
The Beginnings of Industrialization, 1912-1937 | |
| |
| |
| |
Industry | |
| |
| |
| |
Evaluation: How Broad Was Development in the 1912-1937 Period? | |
| |
| |
| |
War and Civil War, 1937-1949 | |
| |
| |
| |
The Rise and Fall of a Japan-Centered East Asian Economy | |
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| |
| |
The Rise of Manchuria | |
| |
| |
| |
Increased State Intervention | |
| |
| |
| |
Inflation | |
| |
| |
| |
Legacies of the Pre-1949 Economy | |
| |
| |
| |
Legacy for the Socialist Era (1949-1978) | |
| |
| |
| |
Legacy for the Post-1978 Market Economy | |
| |
| |
Bibliography | |
| |
| |
| |
The Socialist Era, 1949-1978: Big Push Industrialization and Policy Instability | |
| |
| |
| |
The Big Push Development Strategy | |
| |
| |
| |
The Command Economic System in China | |
| |
| |
| |
Policy Instability | |
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| |
| |
Economic Recovery, 1949-1952 | |
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| |
| |
1953 and 1956: The Twin Peaks of the First Five-Year Plan | |
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| |
| |
Retrenchment: The "Hundred Flowers" of 1956-1957 | |
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| |
The Great Leap Forward, 1958-1960 | |
| |
| |
| |
Retrenchment: Crisis and "Readjustment," 1961-1963 | |
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| |
| |
Launch of the Third Front, 1964-1966: New Expansion Hijacked by Radicalism | |
| |
| |
| |
Retrenchment: The Cultural Revolution, 1967-1969 | |
| |
| |
| |
The Maoist Model: A New Leap in 1970 | |
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| |
| |
Retrenchment: Consolidation and Drift, 1972-1976 | |
| |
| |
| |
The Leap Outward: 1978 and the End of Maoism | |
| |
| |
| |
A Final Turning Point: The Third Plenum and the Beginning of Economic Reform | |
| |
| |
| |
Legacies of the Socialist Period | |
| |
| |
| |
The Legacy of Policy Instability | |
| |
| |
| |
The Shortcomings of the Development Strategy | |
| |
| |
| |
Human Capital Base | |
| |
| |
Bibliography | |
| |
| |
| |
Market Transition: Strategy and Process | |
| |
| |
| |
The Chinese Approach to Transition | |
| |
| |
| |
How Did Reforms Start? The Initial Breakthrough in the Countryside | |
| |
| |
| |
A Two-Phase Framework of Economic Reform | |
| |
| |
| |
Elements of China's Transition Through 1992 | |
| |
| |
| |
Dual-Track System | |
| |
| |
| |
Growing Out of the Plan | |
| |
| |
| |
Particularistic Contracts | |
| |
| |
| |
Entry | |
| |
| |
| |
Prices Equating Supply and Demand | |
| |
| |
| |
Incremental Managerial Reforms Instead of Privatization | |
| |
| |
| |
Disarticulation | |
| |
| |
| |
Initial Macroeconomic Stabilization Achieved Through the Plan | |
| |
| |
| |
Continued High Saving and Investment | |
| |
| |
| |
Conclusion of First-Phase Reforms | |
| |
| |
| |
The Tiananmen Interlude | |
| |
| |
| |
The Second Phase of Reform, 1993-Present | |
| |
| |
| |
Prerequisites | |
| |
| |
| |
Market Reunification | |
| |
| |
| |
Recentralization | |
| |
| |
| |
Macroeconomic Austerity | |
| |
| |
| |
Regulatory Approach and Administrative Restructuring | |
| |
| |
| |
Fiscal and Tax System | |
| |
| |
| |
Banking and Financial System | |
| |
| |
| |
Corporate Governance | |
| |
| |
| |
External Sector: Membership in the World Trade Organization | |
| |
| |
| |
Outcomes | |
| |
| |
| |
From Inflation to Price Stability | |
| |
| |
| |
State Enterprise Restructuring and Downsizing | |
| |
| |
| |
Privatization | |
| |
| |
| |
Reform with Losers | |
| |
| |
| |
Contemporary Challenges | |
| |
| |
Bibliography | |
| |
| |
| |
The Urban-Rural Divide | |
| |
| |
| |
A Dualistic System: The Division Between Urban and Rural | |
| |
| |
| |
Origins of the Urban-Rural Divide | |
| |
| |
| |
The Urban Economic System | |
| |
| |
| |
The Danwei | |
| |
| |
| |
Urban Property Rights | |
| |
| |
| |
The Rural Economic System | |
| |
| |
| |
Rural Collectives | |
| |
| |
| |
Rural Property Rights | |
| |
| |
| |
"Fuzzy" Property Rights and Land-Use Disputes | |
| |
| |
| |
The Evolution of the Rural and Urban Systems During Market Transition | |
| |
| |
| |
Invisible Walls: Administrative Barriers Today | |
| |
| |
| |
Urbanization | |
| |
| |
| |
Rural-Urban Migration | |
| |
| |
| |
Overview of Migration | |
| |
| |
| |
Characteristics of Migrants | |
| |
| |
| |
Economic Consequences of the Urban-Rural Divide | |
| |
| |
| |
Living Standards and Restrictions on Mobility | |
| |
| |
| |
Addressing the Urban-Rural Divide | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Patterns of Growth and Development | |
| |
| |
| |
Growth and Structural Change | |
| |
| |
| |
Growth | |
| |
| |
| |
Data and the Measurement of Growth | |
| |
| |
| |
Growth in Comparative Perspective | |
| |
| |
| |
Instability in Growth | |
| |
| |
| |
Investment | |
| |
| |
| |
Structural Change: Common Patterns | |
| |
| |
| |
Structural Change in China: Labor | |
| |
| |
| |
Structural Change in China: GDP | |
| |
| |
| |
Structural Change and Globalization | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Population Growth and the One-Child Family | |
| |
| |
| |
The Demographic Transition | |
| |
| |
| |
China's Demographic Transition | |
| |
| |
| |
The Role of Government Policy | |
| |
| |
| |
Consequences of the One-Child Policy | |
| |
| |
| |
Changing Age Structure of the Population | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Labor and Human Capital | |
| |
| |
| |
The Institutional Transformation of Chinese Labor | |
| |
| |
| |
The Labor Force | |
| |
| |
| |
Employment: Ownership and Labor Mobility | |
| |
| |
| |
Employment, Unemployment, and State-Sector Downsizing | |
| |
| |
| |
The Informal Sector: Emerging Dualism Within Urban Labor Markets | |
| |
| |
| |
Rural Labor Markets | |
| |
| |
| |
How Well Do Labor Markets Function in China Today? | |
| |
| |
| |
Returns to Education | |
| |
| |
| |
Human Capital and Educational Attainment | |
| |
| |
| |
Other Attributes | |
| |
| |
| |
The Migration Decision | |
| |
| |
| |
Labor Markets Concluded | |
| |
| |
| |
Social Security | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Living Standards: Incomes, Inequality, and Poverty | |
| |
| |
| |
Income Growth | |
| |
| |
| |
Poverty | |
| |
| |
| |
Rural Poverty | |
| |
| |
| |
Official Poverty Line | |
| |
| |
| |
World Bank Internationally Comparable Poverty Line | |
| |
| |
| |
Explaining Poverty Trends | |
| |
| |
| |
Urban Poverty | |
| |
| |
| |
Overall Poverty | |
| |
| |
| |
Inequality | |
| |
| |
| |
Accounting for All Income Sources | |
| |
| |
| |
Physical Quality of Life Indicators | |
| |
| |
| |
Life Expectancy at Birth | |
| |
| |
| |
Other Health-Related Indicators | |
| |
| |
| |
Education | |
| |
| |
| |
Human Development Index | |
| |
| |
| |
Income, GDP per Capita, and Purchasing Power Parity Once Again | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
The Rural Economy | |
| |
| |
| |
Rural Organization | |
| |
| |
| |
The Chinese Village | |
| |
| |
| |
Agricultural Collectives | |
| |
| |
| |
Features of the Agricultural Collectives | |
| |
| |
| |
Discussion of Collectives | |
| |
| |
| |
The Agricultural Policy Environment of the Collectives: "Grain First" | |
| |
| |
| |
The Second Revolution in the Countryside: Rural Reforms, 1979-1984 | |
| |
| |
| |
Production Surges in the Wake of Rural Organizational Change | |
| |
| |
| |
The Side-Effect of Reform: Rural Public Services Decline | |
| |
| |
| |
The Emergence of Rural Land Markets | |
| |
| |
Bibliography | |
| |
| |
| |
Agriculture: Output, Inputs, and Technology | |
| |
| |
| |
Overview of Post-1949 Agriculture | |
| |
| |
| |
Technology Choice and Technical Innovation in Agriculture | |
| |
| |
| |
The Green Revolution | |
| |
| |
| |
Irrigation | |
| |
| |
| |
Agricultural Chemicals | |
| |
| |
| |
Seeds | |
| |
| |
| |
Motive Power in the Countryside | |
| |
| |
| |
Output and Yields: The Challenge of Intensification | |
| |
| |
| |
Diversification and the Challenge of the Future | |
| |
| |
| |
Genetically Modified Organisms | |
| |
| |
| |
Globalization | |
| |
| |
Bibliography | |
| |
| |
| |
Rural Industrialization: Township and Village Enterprises | |
| |
| |
| |
Origins of the TVEs | |
| |
| |
| |
The Golden Age of TVE Development | |
| |
| |
| |
Causes of Rapid Growth | |
| |
| |
| |
Diverse Regional Models of TVE Development | |
| |
| |
| |
The Southern Jiangsu (Sunan) Model | |
| |
| |
| |
The Wenzhou Model | |
| |
| |
| |
The Pearl River Delta Model | |
| |
| |
| |
Failed or Absent TVE Development | |
| |
| |
| |
The Transformation of TVEs in the New Century | |
| |
| |
| |
The Changing Economic Environment of TVEs | |
| |
| |
| |
TVE Restructuring: The Great Privatization | |
| |
| |
| |
National Policy and Local Models | |
| |
| |
| |
Market Conditions and Privatization | |
| |
| |
| |
Insider Privatization | |
| |
| |
| |
Local Variation in the Privatization Process | |
| |
| |
| |
Emergence of New Forms of Rural Industry in the Twenty-First Century | |
| |
| |
Bibliography | |
| |
| |
| |
The Urban Economy | |
| |
| |
| |
Industry: Ownership and Governance | |
| |
| |
| |
Ownership Change: A Diverse Industrial Base | |
| |
| |
| |
Ownership Change in the First Period of Transition | |
| |
| |
| |
Ownership Change from 1996 Through the Present | |
| |
| |
| |
Industrial Finance | |
| |
| |
| |
Transforming Corporate Governance in the State Sector | |
| |
| |
| |
Creating Corporate Governance: Transition A | |
| |
| |
| |
Creating Corporations: Transition B | |
| |
| |
| |
Corporatization and the Company Law: Objectives and Principles | |
| |
| |
| |
The Chinese System in Practice | |
| |
| |
| |
Typology of Corporate Governance Systems | |
| |
| |
| |
Privatization and Hybrid Ownership | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Structural Change: Industry, Energy, and Infrastructure | |
| |
| |
| |
Growth and Structural Change in Manufacturing | |
| |
| |
| |
Regional Growth Patterns | |
| |
| |
| |
Energy | |
| |
| |
| |
Energy Efficiency of the Economy | |
| |
| |
| |
The Three Main Energy Sectors | |
| |
| |
| |
Coal | |
| |
| |
| |
Oil and Gas | |
| |
| |
| |
Electric Power | |
| |
| |
| |
Energy Security, Diversification, and Imports | |
| |
| |
| |
Telecommunications | |
| |
| |
| |
Common Features: Infrastructure Investment | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Technology Policy and the Knowledge-based Economy | |
| |
| |
| |
Pursuing Critical Technologies: The R&D Effort | |
| |
| |
| |
The Trajectory of China's Technology Effort | |
| |
| |
| |
Strategies of R&D Investment | |
| |
| |
| |
Do It Yourself | |
| |
| |
| |
Buy It | |
| |
| |
| |
Bargain for It | |
| |
| |
| |
Seed It | |
| |
| |
| |
Encourage Spin-offs | |
| |
| |
| |
Open Up to Foreign Direct Investment | |
| |
| |
| |
Support Domestic Entrepreneurship | |
| |
| |
| |
Human Capital Resource Base | |
| |
| |
| |
The Output of the R&D Effort | |
| |
| |
| |
Redefining Government Technology Policy in the Twenty-First Century | |
| |
| |
| |
Aligning Incentives in Favor of High-Technology Development | |
| |
| |
| |
Deeper Integration into Global Production Networks | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
China and the World Economy | |
| |
| |
| |
International Trade | |
| |
| |
| |
Background | |
| |
| |
| |
Initial Reform Steps | |
| |
| |
| |
Liberalizing the Foreign-Trade System | |
| |
| |
| |
A Dualist Trade Regime: The Export-Processing System | |
| |
| |
| |
Toward an Open Economy | |
| |
| |
| |
Currency Convertibility | |
| |
| |
| |
World Trade Organization Membership | |
| |
| |
| |
Openness Revisited | |
| |
| |
| |
Outcomes: Rapid Growth and Structural Change | |
| |
| |
| |
Exports | |
| |
| |
| |
Imports | |
| |
| |
| |
High Technology Trade | |
| |
| |
| |
Regional Composition of Trade Within China | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Foreign Investment | |
| |
| |
| |
FDI in the Chinese Economy | |
| |
| |
| |
"Zones": The Gradual Liberalization of the Investment Regime | |
| |
| |
| |
The Investment Regime Today | |
| |
| |
| |
Sources of Investment in China | |
| |
| |
| |
The China Circle | |
| |
| |
| |
FDI in Context | |
| |
| |
| |
Sectoral Composition of FDI: The WTO Impact | |
| |
| |
| |
Modes of Capital Inflow | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Macroeconomics and Finance | |
| |
| |
| |
Macroeconomic Trends and Cycles | |
| |
| |
| |
Trends in National Saving | |
| |
| |
| |
The Fiscal System and Fiscal Reform | |
| |
| |
| |
Reversing Fiscal Erosion | |
| |
| |
| |
Broadening the Tax Base: Horizontal Equity | |
| |
| |
| |
Restructuring Central-Local Relations | |
| |
| |
| |
The Fiscal System Today | |
| |
| |
| |
Intergovernmental Fiscal Relations: Principles | |
| |
| |
| |
Inadequacy of Local Government Revenue in Rural Areas | |
| |
| |
| |
Extrabudgetary Funds, Levies, and Charges | |
| |
| |
| |
Abolishing Local Taxes and Stepping Up Transfers | |
| |
| |
| |
Arbitrary Nature of Transfers | |
| |
| |
| |
Fiscal Deficits and Fiscal Policy | |
| |
| |
| |
Inflation and Macroeconomic Cycles | |
| |
| |
| |
Monetary Policy | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Financial System | |
| |
| |
| |
The Financial System in the Planned Economy and under Reform | |
| |
| |
| |
The Banking System | |
| |
| |
| |
State-Owned Commercial Banks | |
| |
| |
| |
Joint-Stock Commercial Banks | |
| |
| |
| |
City Banks | |
| |
| |
| |
Other Banks | |
| |
| |
| |
Policy Banks | |
| |
| |
| |
Rural Credit Cooperatives | |
| |
| |
| |
The Fringe | |
| |
| |
| |
Central Bank and Regulatory Apparatus | |
| |
| |
| |
Weakness of the Banking System | |
| |
| |
| |
Measures to Reduce the Stock of Nonperforming Loans | |
| |
| |
| |
The "Flow" Problem: Ensuring Good Lending Decisions | |
| |
| |
| |
Current Bank-Reform Program and Prospects for the Future | |
| |
| |
| |
Stock Markets: Learning to Crawl? | |
| |
| |
| |
Birth of the Market: Raising Funds for the State Sector | |
| |
| |
| |
Characteristics of the Market | |
| |
| |
| |
Circulating and Noncirculating Shares | |
| |
| |
| |
Low Contestability | |
| |
| |
| |
Rationing of Listing Opportunities | |
| |
| |
| |
Thin Markets | |
| |
| |
| |
Weak Disclosure and Regulation; Multiple Related-Party Transactions | |
| |
| |
| |
Policy-Driven Market | |
| |
| |
| |
Insider Control and Manipulation | |
| |
| |
| |
Reform Initiatives: Selling Down the State Share: Changing the "Split Share Structure" | |
| |
| |
| |
Institutional Investors | |
| |
| |
| |
Comparative Evaluation of China's Stock Market | |
| |
| |
| |
Bond Markets | |
| |
| |
| |
Other Financial Markets | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
| |
Conclusion: China's Future | |
| |
| |
| |
Environmental Quality and the Sustainability of Growth | |
| |
| |
| |
Pollution | |
| |
| |
| |
Air Pollution | |
| |
| |
| |
Water Pollution | |
| |
| |
| |
Costs of Pollution | |
| |
| |
| |
Pollution Control | |
| |
| |
| |
Sustainability | |
| |
| |
| |
Broad Impact of Pollution and Global Warming | |
| |
| |
| |
Sustainability of Land and Water Resources | |
| |
| |
| |
Desertification | |
| |
| |
| |
Forests and Grasslands | |
| |
| |
| |
Water Availability | |
| |
| |
| |
Conclusion | |
| |
| |
Bibliography | |
| |
| |
Index | |