China: Success in the Market despite being a Centrally Planned Economy
Neo-classical economists have often quipped that market economies create the most conducive environment for economic growth and development; however, the rise of China as an economic giant over the last three decades despite being a centrally planned economy has cast doubt on the neo-classical argument, which makes it necessary to evaluate the unique factors that have led to China’s economic fortunes despite being a centrally planned economy.
Annotated Bibliography
Das, D (2011). China: Epitome of an Emerging Market. Journal of Emerging Knowledge on
Emerging Markets 3 (1): 57-78 Retrieved January 11, 2017 from
http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1039&context=jekem
Das, a lecturer at the Solbridge International School, paints a vivid picture of China’s economic growth including withering the 2008/2009 financial crisis to become a leading emerging market. Das evaluated various structural issues that allowed China’s economy to grow even when the global economy was in recession.
Such an outlook would be important for the research paper. This is because understanding the unique features of the Chinese economy would make it possible to understand the reason behind its persistent economic growth despite a centrally planned economy. It would also provide insights into the areas that the neo-classical economic approach may not be alive to while giving preference to a purely market-based economy.
Kim, Y.C (2015). Economic transition in China and Russia. European Scientific Journal 1 (8):
355-366 Retrieved January 11, 2017 from
http://eujournal.org/index.php/esj/article/viewFile/5570/5365
The article authored by Kim offers an interesting overview that serves to explain the different trajectories of economic growth and development for the former Soviet Union and China. Kim holds that there are various foundational reasons that differed between the two countries. This includes the nature of political leadership and nature of foreign influence they had.
Understanding the reasons for the differences in the two countries’ economic trajectories is important for the research given that they are both centrally planned. Consequently, it becomes possible to evaluate the unique factors that have set China apart from numerous centrally planned economies.
Marangos, J (2006). Were the Chinese reforms a feasible alternative for transition economies?
International journal of social economics 33 (3): 221-240 Retrieved January 11, 2017
International%20Journal%20of%20Social%20Economics.pdf
Marangos argues that that the reforms instituted with the aim of repositioning China’s economy have largely been successful. However, Marangos attributes the success to a well-managed transition into a mixed economy despite the official government position remaining that China is a communist state. Marangos then debates the applicability of this model to other centrally planned economies and comes to the conclusion that the Chinese model does not offer a blueprint due to unique factors within the Chinese economy.
Marangos paper would make an important contribution for the paper as it introduces the idea of a transition. As such, it provides an opportunity to evaluate the true position that China stands on today; whether as a centrally planned or market-based economy. It also offers insights into the uniqueness of China’s system relative to other centrally planned economies.
Zhang, A., & Zhang, Y (2001). Impact of Ownership and Competition on the Productivity of
Chinese Enterprises. Journal of comparative economics 29 (1): 327-346 Retrieved
https://www.monmouth.edu/uploadedFiles/Content/Business_School/departments/accoun
ting/ImpactofOwnershipandCompetitionontheProductivityofChineseEnterprises.pdf
Zhang & Zhang discuss one of the fundamental issues that define the various economic systems that exist; private ownership of property. The two argue that over the years, China has progressively allowed more private ownership of property, which in essence lends the economy to market-based principles. The two also allude to the issue of transition from a centrally planned to a market based economy. They also discuss the role of the state-owned enterprises (SOEs) in the country.
The article by Zhang and Zhang is important for the research paper. It serves to illustrate the contradiction that is the Chinese economy; while it is officially billed as a state-planned economy, private ownership has been on the rise. It helps to raise the question of whether China’s economy has prospered as a result of proper management of the centrally planned system or rather due to an adoption of a mixed approach albeit not openly.
Zhu, X (2012). Understanding China’s growth: Past, present, and future. Journal of economic
perspectives 26 (4): 103-124 Retrieved January 11, 2017 from
http://homes.chass.utoronto.ca/~xzhu/paper/JEP2012.pdf
Zhu, a professor of Economics at the University of Toronto gives a historical perspective of China’s unprecedented economic growth and development since 1978. He traces back the opportunities and challenges beginning in the early centuries that have shaped to be the economic giant it is today. Zhu evaluates major developmental events such as the industrial revolution and its effects on China socio-economic imperatives.
The article by Professor Zhu plays an important role for this research paper. It serves to provide a background for China’s growth story. It is important to have this historical perspective if one is to effectively evaluate China’s state planned economy and its unique system.
