This book examines how China's decentralization process has affected and will affect the country's macroeconomic performance and the functioning of the market. With an innovative application of game theory, the author develops an analytical framework that can explain the behaviour of the central and local governments under alternative institutional environments. The study also suggests how to establish desirable rules of games in China's political and economic institutions through appropriate reforms.

The Chinese Economy in the 1990s

by Jun Ma

Published 1 January 1999
This book presents a comprehensive overview and an economic analysis of China's economic reform experiences, particularly those since the late 1980s. It covers many institutional details of key aspects of the Chinese economy, including fiscal and monetary management, financial sector development, state enterprise reform, international trade, foreign investment, decentralization and regional development. It is argued that, while China has achieved a spectacular growth record over the recent past, and its reform efforts have laid the foundation of a market-based economic management system, the country continues to face major challenges in sustaining its growth performance.