China's economic transition has contributed 30 years of experience in what

 This prototype is my Aug. 30 in Beijing to attend the published twice this article, when published in abridged.
China's economic transition: the experience of 30 years of contributions to what?
Zhang
Introduction
three decades, the Chinese economy has experienced economic growth , the exciting development and institutional change. This process contains too many fascinating stories, testing, decision-making, debate and academic research, too numerous to mention. It is the process of economic change, but also the political process, or a large-scale social experiment and ideological revolution. Economists the process of economic change in the participation, feelings and experiences is extraordinarily different. and other social scientists, not the same, since the Xiaogang Village, Anhui Province in 1978, implementation of the land contract system and in April 1979 political economy report for comment. their own internal differences of opinion, division, argued endlessly, and even mutual accusations. but they have been following the pulse of economic reform and development and progress. While economists experiencing in terms of ideology between the detention and liberation struggling, but open and market-oriented way the economic development and structural change constantly to break our old myths and dogma, leading ideas, to promote innovative thinking and academic.
so in the beginning of last year, I decided to use I write a response to the perspective of hands for 30 years this book, called period of time, thought and academic indeed very active, not only the active participation of the elderly and young scholars of China's economic reforms, and they and the Government maintained a very close relationship with Government's active promotion and support to form the two sides most memorable interaction period of time.
in this time period, 1984's home, especially the new generation Economist for the price reform issues like the nerve to find viable ways to design programs; while in the latter an international meeting on how to understand and deal with the initial stage of transition, macroeconomic imbalances and inflation, as Chinese economists ask for advice to foreign economists face a big issue. China's economic reform as a living classroom of economics. Indeed, China is also a process of economic reform, including our government officials, including the modern economy we are learning and economics of the process. This reform process which of course will have the wisdom from economics, but more importantly, it allows our own economists (both the older generation or the younger generation) from his study of traditional and classical writers The Collected Works came out and began to face the true reality of the Chinese economy. In this case, to argue economists contribution to China's economic reform how much, it becomes unnecessary, and has no value and meaning.
I chose from the I am an economist with a collective image of an important event in the historical arena beginning, of course the most appropriate. in the formation, took the comments out of the classic study of the economic track, China's economic reforms to become active in the field of theory and policy a major force. I account of this meeting in words is written like this: Since the reform and opening up, the economy almost no academic discussion, will be like 1984, So who has talked about. and I think, if the a meeting, without exception, change the fate of a group of young people. I immediately told him to meet, I am writing a book called the invitation is the editor of the Publications anniversary of 50 years to write papers, he also chose the 30th anniversary of China's economic reform theme. but my book is different than he would like to sum up China's economic reform and development itself, but China's economic rise on what is the contribution of modern economics. Thus, in Professor Xie Qianli home, we had a long discussion. we finally have a basic consensus is that China's experience of the first is to verify a lot of economics mature theory, but also to the many widely accepted theory into question. The most important is that China's experience for us to understand more deeply the complex system of relations and economic development provides the best observation opportunities. < br> Finally, Professor Xie Qianli June of this year's Comparative Economic Studies published his paper on Research on the Chinese experience is worth a cause for concern in two ways. First, as a transformation and developing economies, China for testing and interpretation of economic science on the important thinking of the many insights provided a large-scale, heterogeneity and rapid changes in the laboratory. These ideas sources include (but are not limited to) the growth of economics Solow, development economics Lewis, Kuznets, and Sen, as well as system economics Buchanan, Coase and North. Second, expansion of the Chinese experience of the scope of economic analysis. China's economic development experience to say the story is about different times in different systems and that contains a complex interaction and feedback mechanisms of how the system evolution of a large thing. on the unique An Explanation of China depends largely on the economic transformation that we are not seen as a process rather than events. That is, as a process of redefinition of property rights; a continuous process towards a market economy; a technology transfer and innovation process; a learning and mental models to adapt to new economic realities of the process. If you see it that way, then, is connected with the research on the expansion of Chinese economic reform and development of the range of endogenous nature. that, in China's economic reform and development has completed the first decade when the economy has begun to once again become an important topic of the Western mainstream economists. This is the last century there have been 60 years since the phenomenon did not. Economic development has been mainstream economists unprecedented attention. However, this time, economists recognize the phenomenon of economic development and research into a whole new level. system and economic development has become the commanding heights of development economics. Thus, China's economic transformation and development becomes very valuable experience.
In this article, I hope to have this opportunity to 30 years of China's economic reform and development of the topic into the system and development background in the economics literature, from one side to review and economists to discuss economic reform and development in China to see what the experience? value of what? China's experience contributed to the economic development of the theory of what? developed what? To answer these questions, I am prepared to involving and discussion here 5 problem. One way or the transformation strategy on the reform of the selection; The second is the problem of decentralization and centralization; third countries in transition and capacity issues; Fourth, the relationship between the system and economic development. Finally, I would like to talk about China as powers of observation and research for economic development and institutional change to make another contribution to less been mentioned.
know Transformation: Strategy Differences and Comparative Institutional Economics (CIE) formation
20 years ago, no doubt on the topic of economic transformation is still new. Most economists put the economy from a centrally planned transition to a market economy is defined as Admittedly, becoming economists accept the so-called background, in the late 80s and early 90s, China's young generation of economists by
taken the first step, the use of the basic principles of modern economics and methodology to think and observe China's economic reforms hope that, in theory, be able to explain China's reform and economic development of the facts. This is also in fact a collective effort to promote the indigenous process of transition to a modern economist.
at the Shanghai Joint Publishing to launch Economics Library open to the outside world, the academic conference, held for many years in the outside world did not produce spectacular effects, but the Shanghai Joint Publishing provides a platform for the publication and communication are, in fact, a number of today's active in shaping the domestic and international economic stage the young economist.
in Shanghai Joint Publishing, published in 1994, papers. This reflects the Proceedings good 15 years ago, we have a planned economy to a market economy on the transition of basic knowledge. This knowledge can probably Sheng Hong for passage to sum it up: that as long as the choice of the target model, the reform was done. But the practice of reform in different countries and different consequences, which reminds us recognize that market-oriented reform of the more important question is how to reform. This is the official orthodox economics can not explain and do not solve the problem. level. For example, the same in 1994, in Paris, OECD published a book entitled such a passage: of GDP in the past decade to an average of 8% growth, while Russia, Central and Eastern European countries in the past four years has experienced a 15% to 50% decline in production. in the production of this difference makes the comparison appears transition experiences of these countries to seek China's experience may offer lessons of other economies in transition (if any) become very valuable.
undeniable, with Russia and Eastern Europe than in other transition economies, China's reform strategy is significantly different. based on time of economic transformation of Chinese economists made the strategic characteristics of the literature summary and conceptualization, I English forthcoming paper, , the sales price is not subject to control; for the production and sale of two types of prices exist. dual pricing is that it avoids the state-owned enterprises and government support collapsed abruptly ceased. The Government will gradually reduce the quota, while the market price exists convergence trend.
(2) incremental reform: economic liberalization policy only allows the emerging economy (sector) expansion and the establishment of, and does not allow the economy (sector) the loss of government control; the economy is in the planning of new ingredients to encourage and increase foreign access.
(3) pilot reform: reform programs are generally designed not help the central government, in many cases they are not even widely implemented. reform is under way in advance of trial and error. Central to develop some guidelines of the approach, but the central government will encourage local governments to find and the best way to implement reforms. reform program has often been modified to adapt to local conditions.
(4) micro-macro reform walking in front of the reform: the reform program initially focused on the incentive to engage in product markets rather than the elements of the market price out right. Although the Chinese step by step through the double-track price liberalization of the market price, but in order to maintain a smooth transition, most of factor prices have not yet been liberalized. economics tells us that , micro-improvement incentives based on output growth.
(5) economic reform before political reform to go: Economic reform is in a given political system implementation. Although China has experienced fiscal decentralization, the party and central government still appointed local officials. from the experience point of view, the political focus of the system appears more likely to maintain macroeconomic stability.
In that article I concluded: China's economic reform established a system of incentives to better the conditions to drive economic growth. China's experience shows that the price does not seem out of the only determinant of economic success. China's experience in the real work is a set of coordination and motivation mechanism that ultimately established in the market system is necessary before the look. known ability to review, there are two early shortcomings of these studies, one observation of the reform experience of countries in the approach to reform, or merely differences of the above reform strategies, lack of reform of the natural endowments of different countries, political, historical and ideological initial conditions such as more in-depth observation, consider the system less complex relationship with economic growth; second is the lack of empirical research experience.
China and Russia, the great difference in economic performance or, more broadly, Asia transition economies and the Soviet Union and the transition economies (generally referred to as CEEFSU) the distinction in economic development, to explore the topic can be described as enduring and still attract the attention of economists as an important growth point transformation of economic development one. But today, the answer to this question have been different. the research on transition economies in transition have already exceeded the early awareness of the strategic merits of the depth of the system into a comparative study. thanks to further advance this study, one is called as This process is the subject of new institutional economics. New Institutional Economics to the idea of mainstream economics for the soul, absorb the history and political science, with a wealth of material on the system and build a conceptual framework for institutional change. There is no doubt North is the representative of economists. from the the recent (especially Western history since the 18th century) formed during the efforts, which in essence is that it is the theory of history, rather than economic theory of development. It is our concern with this particular phenomenon of economic development and economic transformation of Inter still has a diaphragm. Because of this, comparative institutional economics in economic development, academic growth and institutional restructuring, the formation of the context, it is not the essence of the history of the theory, but economic theory. compare great attention to institutional economics the phenomenon of economic development of different comparative study of attention have a major impact on the economic development of national systems, governance, political system, administrative bureaucrats, intergovernmental fiscal relations, the rule of law, endowments, growth strategies, policy options and other issues involving the classic areas of modern economics outside elements. in the North's sense, these elements are in the system context, or simply that they are systems. Thus, finally, with the North, as comparative institutional economics also adhere to this belief: the system is important The.
on specific transition economies, the comparative institutional economics, earlier studies clearly overcome the shortcomings of the two economies in transition, they do not simply discuss the differences in the way of reform, but from the initial system of constraints to explain the policy Select different. In addition, the comparative institutional economics rely on the experience and measurement of support. It is worth noting that following those discussions, I not only focus on China's economic reforms which began 30 years of topics, and they compare themselves an important part of institutional economics.
growth incentives: Decentralization or re-centralization?
undeniable, modern economics in China's economic transformation and development in the extraordinary impact, and help us understand a lot of place in This 30-year thing. At the same time, China's economic transformation and growth experience to help us to further test development and institutional economics in economic restructuring of some of the theoretical results, and promote the development of the theory. This is not a word game . This is to hide an interesting, not easy to see the mechanism at work. I remember the famous German physicist Werner Heisenberg once said that the decision of the existing theory to what we can observe. for economists to said that China's experience when they observe, they may often find a good experience not only because to build theory, but because of the theory will be easier to find good experience. In fact, the minds of many economists existing theories and knowledge, but these things can largely determine the economic transformation of economists see some different things.
in the West developed the federalism) in the existing theory and China's economic development experience to be in control, it naturally is a case in point. in accordance with the Western theory of fiscal federalism in certain conditions can lead to economic growth. So, were together, since the reform, behind China's economic growth, there is no mechanism for decentralization and fiscal federalism at work? Some Chinese economists began 10 years ago, China's intergovernmental fiscal relations and fiscal decentralization showed great interest in the phenomenon, and From then forward the relevant fiscal decentralization and fiscal federalism theory development. This is probably to say that Heisenberg provided a footnote.
2008 year, Peking University, Professor Zhou Lian and I jointly edited and Shanghai People's Publishing House and Gezhi a study co-published the collected works, and take the . the purpose of editing this anthology is to be able to summarize and display the past 10 years Chinese economists rely on China's reform of intergovernmental fiscal relations and the experience of economic growth in the We are development economics, transition economics, comparative institutional research and an important contribution to the literature.
in the economics literature, the research on fiscal federalism at least a half a century. is generally believed that Charles Tiebout1957 at the University of Chicago The Journal of Political Economy Journal (Journal of Political Economy) published theory or developed the idea to the decentralization, the formation of the early literature of fiscal federalism. can be regarded as the first generation of these documents Theory of Fiscal Decentralization .2006 June, it is Charles Tiebout published his classic paper in 1956 to enter When the 50th anniversary of the U.S. Lincoln Institute of Land Policy (Lincoln Institute of Land Policy) William Fischel has published a book edited Essays in Honor of Public Economics Wallace Oates's contribution As long as people can move freely between different places, their own true preferences to, in essence, inverse ratio, so it is bound to the resulting competition between local governments, this is similar to the mechanism of competitive markets can affect the local government's public expenditure patterns.
However, early this generation of fiscal federalism largely confined to the idea In the context of public finance, there is no more centrally involved in local government incentives and economic growth patterns and the relationship between decentralization and other issues. has been to the early 90s of last century, with China and Russia, the experience of countries with economies in transition phenomenon was attention, the early ideas of fiscal federalism was able to flourish.
1993, China economist with Yingyi Qian Xu Chenggang magazine in the Economics of Transition (Transition Economics) published an article on the subject of lengthy comparison article Why China's economic reforms difference? M-type hierarchical and non-state sector entry and expansion. of this paper, they have a preliminary observation, that before the reform of China's economic sense in the organization is different with the former Soviet Union, they believe that the organizational structure of the different ways of later reforms and economic growth has an impact . in the former Soviet Union, planned economic management is vertical, vertical, and China's plans within the system there is always a multi-level and multi-region management level, so that an industrial organization constitutes the so-called U-type and M - the distinction between types of organizational structure. In China, this structure is conventionally called Western economists and political scientists (eg, Gerard Roland and Barry Weingast and others) also joined them, jointly co-operation with the Chinese economists, the idea began to more fiscal decentralization and local government incentives, economic restructuring and linked to economic growth. As a large extent by the economic transformation of China and the Russian experience of phenomena, their research methods and perspectives and the early public finance theory has been different, they break through the limitations of the supply of public goods, and further to the local financial decentralization and local government incentives and competition in the local link is established to explain a conceptual framework for economic transformation. In this framework, they emphasized the decentralization of local conditions to promote local competition, and they think it is a The second generation of fiscal decentralization or fiscal federalism the basic literature.
However, these studies emphasize the importance of decentralization is still limited, face further challenges. First, of course, after China in 1949, especially during the Cultural Revolution, the central to local institutional framework for the gradual formation of the separation of powers, which can be considered China's economic reforms in 1978, favorable Instead'd constantly changing and adjusting. As fiscal decentralization is not stable, why the local officials to promote economic growth, competition and incentive is not changed? Second, these studies did not seem to notice the importance of re-centralization. In fact, most economic Reform of the beginning of the implementation of the reform countries of central and local fiscal decentralization. For example, Russia, Gorbachev era was the financial decentralization to local governments. Moreover, whether China or Russia, the financial sub- right after. the central financial resources continued to decline and local spending to expand the gap of economic reforms and stability to become the greatest threat. When a sustained decline in the central finance and local public expenditure gap of the future, both countries have made reform of the authorities to re- consider centralized response. However, the performance of Russia's re-centralization of public finances to re-expand the size of the Chinese in 1994, before and after the re-centralization was designed by a set of national capacity-building on the implementation of institutional reforms.
I submitted in September 2007 the United Nations University Institute for Economic Development (UNU-WIDER) in an international conference papers discussed the Chinese government in 1994 after a series of institutional reforms on economic development. These reforms include party system of governance and financial aspects. (1) to strengthen central and local leaders direct control. local government officials, especially governors and provincial secretary of the directly appointed by the central authorities. their promotion and rotation by the central level control, to ensure that the local government's absolute loyalty to the central information and to avoid the asymmetry between the two; (2) the introduction of official promotion of economic performance-based system (the so-called strengthen local political incentives; (3) re-divided and the central and local institutional income and expenditure of the range (the so-called revenue-sharing), to recognize and maintain local financial autonomy, in ensuring that the central premise of income, strengthening the central and local revenues adjustment and balance; (4) stripping the four state-owned commercial banks bad debts and set up asset management companies (AMC) to reduce the debts to the government and the public sector, public sector subsidies to plug loopholes.
reforms to ensure that these systems re-centralization and the central political authority, established within the party and government bureaucratic system similar to Championship mechanism leads to the normal operation of China. First, China's authoritarian system of making the central government can set the game rules and evaluation criteria, and can decide who can be promoted in the end; Secondly, the Chinese Government is a type of hierarchical M structure and organization of each part can be compared directly, relatively easy to implement Championship; Finally, although the rapid growth of non-state sector, but local governments still control most of the financial resources, land, other factors of production and the right policies . Thus, the political incentives for local economic development can have a profound impact.
I can find some explanation for this indirect statistical evidence .2006, Zhang Yan and Gong six published growth, significantly between 1994-2002 is positive, and in the years 1986-1993 is significantly negative. If you do not take into account before and after 1994, aimed at strengthening the centralized political and fiscal reform factors, we can not explain very well the estimation of their results.
Ekaterina Zhuravskaya published in 2000, the Russian fiscal decentralization on the incentive effects of the research paper, the authors found that if the local government's own revenues increased by 1 dollar, the local share of revenue will decline 9 cents. Therefore, Russia's financial re-centralization to local government can not provide adequate financial incentives, local governments have no incentive to promote economic development.
2007 年 5 months, I am guided by the Fu Yong, a doctoral student in the doctoral thesis also made a test of such financial incentives, he extended to the 1970-2004 data, and taking into account transfer payments and tax division. Zhuravskaya his research methods used, but the opposite is true in Russia, his estimates show that , the tax system in 1994, China's financial incentives facing local governments greatly increased.
Fu Yong, in his doctoral thesis also examined the local tax system in 1994 after a change in the structure of fiscal expenditure. He used the 1994-2004 China's 29 provinces and cities of the panel data, it is estimated that in 1994-2004, fiscal decentralization on the east and west of the proportion of capital expenditure is significantly positive, while the proportion of expenditure on science, education is significantly negative impact. of no significant effect on the middle. And the data do return extended to 1986-2004, found that the tax system in 1994, prior to fiscal decentralization on the proportion of capital expenditure is not significant, while the proportion of expenditure on science, education of still significantly negative. This finding helps explain, in 1994, after the implementation of the tax system, local government hardened budget constraints, the incentive to improve economic growth. This phenomenon did not occur in Russia.
So, in my opinion, China and Russia since the 90s in the last century of economic growth and development in different manifestations, and its due to fiscal decentralization, might as well be attributed to the re-centralization of decentralization lead to differences in the way. So, in order to re-centralization of power, China's reform Reform the Why did you choose to respond to emerging threats rather than separation of powers as Russia to re-expand the scale of public finance it? a simple answer is that the Russian government has sufficient oil revenues and ...