China's Economic Transformation

Now available in a fully-revised and updated third edition, this
established textbook provides a penetrating and comprehensive
analysis of the historical, institutional, and theoretical factors
that have contributed to China's economic success.

• Includes coverage of China's foreign investments, trade
  with regional partners, Chinese human capital, and bureaucratic
  economic institutions

• Covers a diverse set of important issues, including
  environmental restraints, income distribution, rural poverty, the
  education system, healthcare, exchange rate policies, monetary
  policies, and financial regulation

• Accessibly written and intelligently organized to offer a
  straightforward guide to China's economic evolution

• Written by a lauded economist, researcher, and advisor to
  government officials in mainland China and Taiwan

Autorentext
Gregory Chow is Professor of Economics and Class of 1913 Professor of Political Economy, Emeritus, at Princeton University. Author of 16 books and over 250 journal articles, he is a Fellow of The Econometric Society and the American Statistical Association. He has advised top government officials in mainland China and Taiwan, and in May 2001 the Econometric Research Program at Princeton was named in his honor.

Klappentext

In the three decades since the start of economic reforms in China, economic growth in the world's most populous country has been a phenomenal 9.6% per year on average. In China's Economic Transformation, Gregory Chow provides a penetrating and comprehensive examination of the historical, institutional, and theoretical factors that have contributed to this economic success. Chow draws on insights gained from over twenty years of teaching, travelling, working with government officials and academics, and interacting with ordinary citizens in Chinese society to analyze and explain China's rapidly evolving economy. Including new material on China's foreign investments, trade with regional partners, energy and environmental issues, and Chinese human capital, this thoroughly updated new edition will continue to be an essential resource for students and scholars of Chinese economics.

Zusammenfassung
Now available in a fully-revised and updated third edition, this established textbook provides a penetrating and comprehensive analysis of the historical, institutional, and theoretical factors that have contributed to China's economic success.

• Includes coverage of China's foreign investments, trade with regional partners, Chinese human capital, and bureaucratic economic institutions
• Covers a diverse set of important issues, including environmental restraints, income distribution, rural poverty, the education system, healthcare, exchange rate policies, monetary policies, and financial regulation
• Accessibly written and intelligently organized to offer a straightforward guide to China's economic evolution
• Written by a lauded economist, researcher, and advisor to government officials in mainland China and Taiwan

Inhalt
Preface to the Third Edition xii Part I: Historical Background and General Survey 1

1 Economic Lessons from History 3

1.1 Introduction 3

1.2 Significant Events in Major Historical Dynasties 4

1.3 The Republic of China, 1911 10

1.4 Summary of Historical Lessons 15

1.5 What History Can Reveal about the Chinese Economy 16

References and Further Reading 17

Questions 18

2 Experiments with Planning and Economic Disruptions 20

2.1 The Communist Party Rises to Power 20

2.2 Historical Review: 194978 22

2.3 A Model of the Chinese Planned Economy 25

2.4 The Behavior of Economic Units in a Planned Economy 29

2.5 Output Planning in Theory and Practice 32

2.6 Organization and Administration of Economic Planning 37

References and Further Reading 40

Questions 41

3 Economic Reform up to the Mid-1990s 43

3.1 Why Economic Reform Started in 1978 43

3.2 Agriculture 45

3.3 Reform of State-Owned Enterprises 46

3.4 Price Reform 48

3.5 The Banking System 49

3.6 Foreign Trade and Investment 50

3.7 The Nonstate Sectors 51

3.8 Institutional Infrastructure 52

3.9 Reform Policies Similar to Those of Taiwan 53

3.10 Reasons for the Success of China's Economic Reform 56

3.11 Summary 60

Appendix: China's Geography 61

References and Further Reading 63

Questions 63

4 Further Reform up to the 2010s 65

4.1 Introduction 65

4.2 Enterprise Reform 66

4.3 Banking Reform 68

4.4 Foreign Trade and Investment during the Asian Financial Crisis 72

4.5 The Impact of WTO Membership 74

4.6 Reform in Agriculture 81

4.7 Rural Poverty 82

4.8 Prospects for Reform 85

References and Further Reading 87

Questions 88

Part II: Analysis of the Macroeconomy 89

5 Economic Growth 91

5.1 The Neoclassical Model of Economic Growth 91

5.2 Data on Output, Capital, and Labor 93

5.3 A Review of Regression Analysis 98

5.4 Estimating Production Functions for China 99

5.5 Use of the Neoclassical Growth Model to Forecast GDP 104

5.6 How Large Will the Chinese Economy Be in 2020? 107

5.7 Lessons from Forecasting 108

References and Further Reading 108

Questions 109

6 Economic Fluctuations 110

6.1 The MultiplierAccelerator Model of Economic Fluctuations 110

6.2 Dynamic Properties of the MultiplierAccelerator Model 113

6.3 An Econometric Method for Estimating Parameters of Linear Stochastic Equations 115

6.4 Estimating a MultiplierAccelerator Model of the Chinese Economy 116

6.5 A Vector Autoregression (VAR) System 120

6.6 Econometric Models of the Chinese Economy 122

References and Further Reading 122

Questions 123

7 Macroeconomic Policies 125

7.1 Introduction 125

7.2 Monetary Policy 127

7.3 An Econometric Analysis of Inflation and of Monetary Policy in China 134

7.4 Basic Facts about Government Revenue and Expenditure 136

7.5 Fiscal Policy 139

References and Further Reading 140

Questions 141

8 The Effects of Political Movements on the Macroeconomy 142

8.1 Specification of a Dynamic Optimization Model of the Chinese Economy 142

8.2 The Solution of the Dynamic Optimization Problem 145

8.3 Statistical Estimation 149

8.4 Measuring the Effects of Two Political Events 150

8.5 Conclusions 156

References and Further Reading 157

Questions 157

Part III: Topics in Economic Development 159

9 Consumption 161 9.1 Trends in Per Ca...