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Understanding China's Economy Downloaded from www.worldscientific.com by 24.202.235.236 on 04/13/15. For personal use only.

UNDERSTANDING
CHINAS
ECONOMY

Understanding China's Economy Downloaded from www.worldscientific.com by 24.202.235.236 on 04/13/15. For personal use only.

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Understanding China's Economy Downloaded from www.worldscientific.com by 24.202.235.236 on 04/13/15. For personal use only.

UNDERSTANDING
CHINAS
ECONOMY

Gregory C. Chow

Princeton University

World Scientific

Singapore • New Jersey • London • Hong Kong

Published by
World Scientific Publishing Co. Pte. Ltd.
P O Box 128, Farrer Road, Singapore 9128
USA office: Suite IB, 1060 Main Street, River Edge, NJ 07661
UK office: 73 Lynton Mead, Totteridge, London N20 8DH

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Library of Congress Cataloging-in-Publication Data
Chow, Gregory C , 1929Understanding China's economy / Gregory C. Chow.
p.
cm.
Includes bibliographical references and indexes.
ISBN 9810218419 -ISBN 9810218583 (pbk.)
1. China—Economic conditions—1976- 2. China—Economic policy-1976- I. Title.
HC427.92.C4783 1994
330.95 l'05-dc20
94-19947
CIP

Copyright © 1994 by World Scientific Publishing Co. Pte. Ltd.
All rights reserved. This book, or parts thereof, may not he reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher.

For photocopying of material in this volume, please pay a copying fee through the Copyright
Clearance Center, Inc., 27 Congress Street, Salem, MA 01970, USA.

Printed in Singapore.

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PREFACE

This book represents a record of the authors's effort to understand and to help improve the Chinese economy from the early 1980s to 1994. An attempt to understand the Chinese economy was made in the author's book, The Chinese Economy
(Harper & Row, 1985, and World Scientific, 1988). Since the publication of that book the author has made further attempts as recorded in this book.
A reader wishing to understand the Chinese economy may benefit from the observations and the economic analyses reported here. The book describes and evaluates China's economic reforms since 1978 (Part I), examines the prospects for future growth (Part II), sets forth the basic tools and data for studying the
Chinese economy (Part III), and presents microeconomic analyses (Part IV) as well as macroeconomic analyses (Part V) for the Chinese economy. It represents only the author's effort and is not a text covering the research on the Chinese economy completed by many other scholars. The coverage of the important topics, though incomplete, is sufficient to provide the reader a coherent picture of the Chinese economy. The reader will find interesting facts, ideas and analytical methods for understanding China's economy.
The Economics Department of Princeton University has provided a stimulating and congenial environment for me to pursue my interests in the Chinese economy, in addition to my other interests in economics. The Center for International Studies at Princeton has provided support for a part of the research. I would like to thank my colleagues at the State Commission on Education and the State
Commission on Restructuring the Economic System of the State Council of China, with whom I have cooperated to improve economics education and the economic system in China. From these colleagues I have learned a great deal about economics in action. I am grateful to all the publishers cited who have granted permission to reproduce previous published material, and especially to Dr. K. K. Phua, World
Scientific Publishing, for his enthusiasm and effort in getting this…