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Abstract

Vol. 50, No. 4, pp. 289-298 (1999)

“China's Gradualism in Transition Reconsidered -Some Comparisons with the Cases of Former Socialist Countries-”
Katsuji Nakagane (Graduate School of Economics, Department of Economics, University of Tokyo)

It is usually said that China's economic transition has been successful, with a sharp contrast with stagnant or declining economies in the former Soviet Union and Eastern Europe. However, as several serious problems have appeared in China recently, such as ill-performing state owned enterprises and rampant corruption, it seems that China's success story has to be reevaluated. This paper attempts to reconsider the rapid economic development in China from new perspectives, and insist that its success relies on vague institutions, i. e. ownership, so far, but it will have to fully develop such institutions in order to marketize its economy much further.