- Michael Bell, Kalpana Kochhar, and Hoe Khor
- Published Date:
- June 1993
© 1993 International Monetary Fund
Library of Congress Cataloging-in-Publication Data
Bell, Michael W.
China at the threshold of a market economy / Michael W. Bell, Hoe Ee Khor, and Kalpana Kochhar with Jun Ma, Simon N’guiamba, and Rajiv Lall.
p. cm. — (Occasional paper, ISSN 0251-6365 ; 107)
Includes bibliographical references.
1. China—Economic policy—1976– 2. China—Economic conditions—1976– I. Khor, Hoe Ee. II. Kochhar, Kalpana. III. Title. IV. Series: Occasional paper (International Monetary Fund) ; no. 107.
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- List of Abbreviations of China’s Provinces, Municipalities, and Autonomous Regions
- I. Overview
- II. Initial Conditions and Special Characteristics of Chinese Reform
- Initial Conditions and Reform Environment
- Special Characteristics of Reform
- Box 1. China’s Nonstate Industrial Sector
- Box 2. Shareholding Arrangements in China’s State-Owned Enterprises
- III. Reform of the Domestic Economy
- Major Reforms During 1978 to Early 1992
- Rural Enterprises
- Prices and Mandatory Planning
- State-Owned Enterprises
- Employment, Social Benefits, and Housing
- Fiscal Reform
- Financial Sector
- Extending the Reform Agenda: 1992 and Beyond
- Legal and Regulatory Framework
- Role and Functions of Government
- Macroeconomic Management
- Establishment of Markets and Related Infrastructure
- Price Reform
- Enterprise Reform
- Employment, Social Security, and Housing
- Land Use System
- Financial Reforms
- Nonstate Sector
- Box 3. Chronology of Reform Initiatives, 1992–July 1993
- Box 4. Enterprise Regulations
- Major Reforms During 1978 to Early 1992
- IV. Opening Up and External Policies
- Policies at the National Level
- Policies at the Regional Level
- Review of Progress
- Box 5. Foreign Exchange Retention and the Swap Centers
- Box 6. The Impact on the Economy of Opening Up: Selected Features
- V. Decentralization and Regional Development
- Policy Orientation: Industrial or Regional?
- Evolution of Ownership Structure
- Center-Local Financial Relations
- The Experience of Guangdong
- The Fastest Growing Region?
- Selected Features in Guangdong’s Development
- Can Guangdong’s Experience Be Replicated?
- VI. Economic Impact of Reform
- Impact on Economic Activity
- Integration into the Global Economy
- Decentralization and Macroeconomic Policy
- Macroeconomic Management and Stability
- Structural Reforms to Promote Market-Based Macromanagement
- VII. Conclusions
- I. Synopsis of Reform from 1978
- II. Performance of the Provinces: A Statistical Analysis
- II 1. Selected Macroeconomic Indicators
- III 6. Proportion of Output and Sales at Fixed, Guided, and Market Prices
- IV 7. Basic Indicators of SEZs and Open Coastal Cities, 1991
- V 12. Central-Local Resource-Sharing Contracts, 1988–92
- VI 15. Gross Value of Industrial Output by Form of Ownership
- II A1. Decomposition of GDP Growth into Export and Nonexport Growth in Guangdong, 1978–90
- IV 1. Exchange Rate Developments
- V 2. Provincial Ownership Structure
- VI 7. Selected Economic Indicators
The following symbols have been used throughout this paper:
… to indicate that data are not available;
— to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist;
– between years or months (e.g., 1991–92 or January–June) to indicate the years or months covered, including the beginning and ending years or months;
/ between years (e.g., 1991/92) to indicate a crop or fiscal (financial) year.
“Billion” means a thousand million.
Minor discrepancies between constituent figures and totals are due to rounding.
The term “country,” as used in this paper, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states, but for which statistical data are maintained and provided internationally on a separate and independent basis.
This Occasional Paper undertakes a comprehensive review of China’s reform experience since 1978. It identifies special conditions that may have affected China’s capacity to implement reforms and draws implications for the direction of China’s future reform strategy.
It is based on research papers prepared by the authors during 1992–93. Michael Bell, Hoe Ee Khor, Kalpana Kochhar, and Simon N’guiamba are all staff members of the IMF’s Central Asia Department; Rajiv Lall is a staff member of the World Bank; and Jun Ma was a summer intern in 1992. Ms. Kochhar and Messrs. Bell and Khor integrated the material. A major part of the work on regional policies, including the statistical analyses, was carried out by Mr. Ma, while Mr. Lall and Mr. N’guiamba contributed material on the nonstate sector and China’s integration into the global economy, respectively. The authors would like to thank Yusuke Horiguchi, Ichiro Otani, and Douglas Scott for valuable comments and support, and Viola Chou for research assistance. Esha Ray and Elin Knotter of the External Relations Department edited the manuscript and coordinated production of the publication.
The opinions expressed in the paper are those of the authors and should not be construed as representing the views of the IMF, its Executive Directors, or the Chinese authorities.
List of Abbreviations for China’s Provinces, Municipalities, and Autonomous Regions