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- Title
Challenges of China's economic system for economic theory.
- Authors
Chow, Gregory C.
- Abstract
The challenges of the market economy in China for economic theory touch on four topics: private versus public ownership of assets, Western legal systems versus Eastern semiformal legal systems, individualism versus the collective good and multiparty versus one-party political systems. The successful experience of the township and village enterprises in China is sufficient to challenge the dogma that only private enterprises in a capitalist economy can be efficient. Most assets in China are publicly owned, by the central government, by provincial and local governments, and by villages as collectives. Incentive systems have been adopted to make the management of these assets efficient. As the Chinese people become richer and more educated, they will demand more political rights from the government. Under a one-party system, political representation of the people in China through elected members of the People's Congress has been strengthened in the past decade. China's economic institutions are evolving, but some features may be longlasting and the existing institutions provide ample challenges for research.
- Subjects
CHINA; ECONOMIC conditions in China; CAPITALISM; ONE party systems; INVESTORS; ASSETS (Accounting); INDIVIDUALISM; ECONOMICS
- Publication
American Economic Review, 1997, Vol 87, Issue 2, p321
- ISSN
0002-8282
- Publication type
Article