Incremental Reform and Distortions in China's Product and Factor Markets
The purpose of economic reform is to reduce distortions and enhance efficiency. However, when reforms are partial and incremental, individuals and local governments are often able to capture the rent inherent in the gradual transition process. Young (2000) warned that such rent-seeking behavior migh...
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| Veröffentlicht in: | The World Bank economic review 2007-01, Vol.21 (2), p.279-299 |
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| container_title | The World Bank economic review |
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| creator | Zhang, Xiaobo Tan, Kong-Yam |
| description | The purpose of economic reform is to reduce distortions and enhance efficiency. However, when reforms are partial and incremental, individuals and local governments are often able to capture the rent inherent in the gradual transition process. Young (2000) warned that such rent-seeking behavior might lead to increasing market fragmentation. Empirical studies have shown the opposite in the product market. This article argues that as the rent from China's product market has been squeezed out due to deepening reforms, rent-seeking behavior may have shifted to the capital market. Further reforms are needed in the capital market to squeeze out these rent-seeking opportunities, just as those from the product and labor markets were squeezed out earlier. |
| doi_str_mv | 10.1093/wber/lhm002 |
| format | Article |
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Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org 2007</rights><rights>The Author 2007. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org</rights><rights>CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank</rights><rights>The Author 2007. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / the world bank. All rights reserved. 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| ispartof | The World Bank economic review, 2007-01, Vol.21 (2), p.279-299 |
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| source | PAIS Index; Open Knowledge Repository; JSTOR Archive Collection A-Z Listing; Oxford University Press Journals All Titles (1996-Current); Alma/SFX Local Collection |
| subjects | 20th century Banks Bribery Capital markets China Commodity market Economic growth Economic reform Efficiency fiscal decentralization Gross domestic product Industrial agriculture Industrial market Labor market labor markets Labor productivity Local government local governments Marginal products Market planning migration New products Product markets Productivity Provinces Regions Rent-seeking Rents savings Stock exchanges Studies trade flows Trends urban services World Bank |
| title | Incremental Reform and Distortions in China's Product and Factor Markets |
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