Abstract
Pursuing a gradual reform process, China has avoided experiencing declining incomes and massive unemployment. This study surveys the speed of China's reforms and the main sources of the country's economic growth. A major finding is that China's economic growth is mainly derived from the massive rise of non-state enterprises and an increase in competition between state and non-state enterprises. Among the various types of non-state enterprises, the emergence of the fast-expanding rural collectives has been most striking. Their success is largely attributed to the fact that these non-state enterprises face hard budgetary constraints, enjoy artificial cost advantages, and benefit from a faster rate of institutional innovation in the rural areas. However, these enterprises have had major difficulties obtaining funding for long-term investment from outsiders and from banks. Thus, their apparent success is largely attributed to their artificial cost advantages.
Original language | English |
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Pages (from-to) | 1-30 |
Number of pages | 30 |
Journal | Issues and Studies |
Volume | 36 |
Issue number | 2 |
Publication status | Published - 1 Jan 2000 |
Keywords
- Bankruptcy
- Economic growth
- Non-state sector
- Reform approach
- Rural collectives
ASJC Scopus subject areas
- Sociology and Political Science
- Political Science and International Relations