China's Economic Transformation [Paperback]

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

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: 1949–78 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

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