| |
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| Acknowledgments | |
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| Introduction | |
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| From Transition to Development | |
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| The Distance Traveled | |
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| The Dual Transition | |
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| China's Growth Performance | |
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| Becoming a "Normal" Country | |
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| China to the Future | |
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| Using This Textbook | |
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| Bibliography | |
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| 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 | |
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| Bibliography | |
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| The Chinese Economy Before 1949 | |
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| The Traditional Chinese Economy, 1127-1911 | |
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| High-Productivity Traditional Agriculture | |
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| The Commercialized Countryside | |
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| Sophisticated Institutions | |
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| Competitive Markets | |
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| Small-Scale, "Bottom-Heavy" Economy | |
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| Crisis of the Traditional Economy? | |
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| The Failed Response to the West and Japan | |
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| The Beginnings of Industrialization, 1912-1937 | |
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| Industry | |
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| Evaluation: How Broad Was Development in the 1912-1937 Period? | |
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| War and Civil War, 1937-1949 | |
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| The Rise and Fall of a Japan-Centered East Asian Economy | |
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| The Rise of Manchuria | |
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| Increased State Intervention | |
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| Inflation | |
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| Legacies of the Pre-1949 Economy | |
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| Legacy for the Socialist Era (1949-1978) | |
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| Legacy for the Post-1978 Market Economy | |
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| Bibliography | |
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| The Socialist Era, 1949-1978: Big Push Industrialization and Policy Instability | |
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| The Big Push Development Strategy | |
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| The Command Economic System in China | |
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| 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 | |
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| Retrenchment: Crisis and "Readjustment," 1961-1963 | |
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| Launch of the Third Front, 1964-1966: New Expansion Hijacked by Radicalism | |
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| Retrenchment: The Cultural Revolution, 1967-1969 | |
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| The Maoist Model: A New Leap in 1970 | |
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| Retrenchment: Consolidation and Drift, 1972-1976 | |
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| The Leap Outward: 1978 and the End of Maoism | |
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| A Final Turning Point: The Third Plenum and the Beginning of Economic Reform | |
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| Legacies of the Socialist Period | |
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| The Legacy of Policy Instability | |
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| The Shortcomings of the Development Strategy | |
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| Human Capital Base | |
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| Bibliography | |
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| |
| Market Transition: Strategy and Process | |
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| The Chinese Approach to Transition | |
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| How Did Reforms Start? The Initial Breakthrough in the Countryside | |
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| A Two-Phase Framework of Economic Reform | |
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| Elements of China's Transition Through 1992 | |
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| Dual-Track System | |
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| Growing Out of the Plan | |
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| Particularistic Contracts | |
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| Entry | |
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| Prices Equating Supply and Demand | |
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| Incremental Managerial Reforms Instead of Privatization | |
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| Disarticulation | |
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| Initial Macroeconomic Stabilization Achieved Through the Plan | |
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| Continued High Saving and Investment | |
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| Conclusion of First-Phase Reforms | |
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| The Tiananmen Interlude | |
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| The Second Phase of Reform, 1993-Present | |
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| Prerequisites | |
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| Market Reunification | |
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| Recentralization | |
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| Macroeconomic Austerity | |
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| Regulatory Approach and Administrative Restructuring | |
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| Fiscal and Tax System | |
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| Banking and Financial System | |
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| Corporate Governance | |
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| External Sector: Membership in the World Trade Organization | |
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| Outcomes | |
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| From Inflation to Price Stability | |
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| |
| State Enterprise Restructuring and Downsizing | |
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| Privatization | |
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| |
| |
| Reform with Losers | |
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| |
| Contemporary Challenges | |
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| |
| Bibliography | |
| |
| |
| |
| The Urban-Rural Divide | |
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| A Dualistic System: The Division Between Urban and Rural | |
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| |
| Origins of the Urban-Rural Divide | |
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| The Urban Economic System | |
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| The Danwei | |
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| Urban Property Rights | |
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| The Rural Economic System | |
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| Rural Collectives | |
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| Rural Property Rights | |
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| |
| "Fuzzy" Property Rights and Land-Use Disputes | |
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| |
| |
| The Evolution of the Rural and Urban Systems During Market Transition | |
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| |
| Invisible Walls: Administrative Barriers Today | |
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| Urbanization | |
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| |
| Rural-Urban Migration | |
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| |
| |
| Overview of Migration | |
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| |
| Characteristics of Migrants | |
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| |
| |
| Economic Consequences of the Urban-Rural Divide | |
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| |
| |
| Living Standards and Restrictions on Mobility | |
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| |
| |
| Addressing the Urban-Rural Divide | |
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| |
| |
| Conclusion | |
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| |
| Bibliography | |
| |
| |
| |
| Patterns of Growth and Development | |
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| |
| |
| Growth and Structural Change | |
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| |
| |
| Growth | |
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| |
| |
| Data and the Measurement of Growth | |
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| |
| |
| Growth in Comparative Perspective | |
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| |
| |
| Instability in Growth | |
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| Investment | |
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| |
| Structural Change: Common Patterns | |
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| |
| Structural Change in China: Labor | |
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| |
| Structural Change in China: GDP | |
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| |
| |
| Structural Change and Globalization | |
| |
| |
| |
| Conclusion | |
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| |
| Bibliography | |
| |
| |
| |
| Population Growth and the One-Child Family | |
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| |
| |
| 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 | |
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| |
| |
| Other Attributes | |
| |
| |
| |
| The Migration Decision | |
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| |
| |
| Labor Markets Concluded | |
| |
| |
| |
| Social Security | |
| |
| |
| |
| Conclusion | |
| |
| |
| Bibliography | |
| |
| |
| |
| Living Standards: Incomes, Inequality, and Poverty | |
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| |
| |
| 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 | |
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| |
| |
| 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 | |
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| |
| |
| 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 | |
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| |
| |
| Irrigation | |
| |
| |
| |
| Agricultural Chemicals | |
| |
| |
| |
| Seeds | |
| |
| |
| |
| Motive Power in the Countryside | |
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| |
| |
| Output and Yields: The Challenge of Intensification | |
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| |
| |
| 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 | |
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| |
| |
| 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 | |
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| |
| |
| 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 | |