...also how economic reform started out in 1978. Then I will go on to cover the four major economic institutions that needed to be reformed in order for China to become a market economy. These four major economic institutions will then be discussed in detail. This paper will then go briefly into China joining the WTO and will conclude with China’s economic situation at present. Chinese economic policies and institution have undergone a number of extreme changes since the establishment of the Communist regime in 1949. After the Communist Party took national power in 1949, the disorder caused by the imperialist invasions and domestic wars were put to an end and China began to strive for development by following Russia’s example in pursuing Leninist and Marxist doctrine. By following this doctrine they would replace free market and private ownership with socialist planning and public ownership. In order for this to become a reality China had to pursue radical revolutionary domestic and foreign policies to overcome the resistance to the Chinese Communist movements. After closing its doors to western concepts of capitalism and free market economy it seemed like China was doing well but it was soon evident that the rigid planning and the command market economy was becoming inefficient. In contrast to the western economies China was indeed falling behind. Even China’s neighbors such as Taiwan, Singapore, Korea and Hong Kong were growing rapidly after adopting market economic systems....
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...After reading “Family”, I get more realize for the feudal system and feel melancholy for the corrupt society. In the novel, the Kao family reflects the real society and the members in the family stand for different characters in the feudal system. Among these people in Kao family, the three brothers, Chueh-chin, Chueh-hui and Chueh-min impressed me most. Even though they have the same parents, the three people have different thought and character, and these two factors determine their destiny will be various. Kaos were the four generations under one roof and it was also literary family. However, under its magnificent surface, there were full of civil campaign, dissipated and unashamed. Chueh-hui was the third master in the big family and he accepted the higher education in the college. During that time, students were influenced by the May 4th Movement; their passion were ignited and they hope to struggle for their ambition. Chueh-hui was one of them and he was affected by the new trend of thought. Because of that, his hate to the feudal system was increasing and he felt that he was getting further and further from his family. “Some day, when his hands were bigger, if he could crush the old order between them in the same way, how wonderful that would be…” (70) Living in the big family, Chueh-hui cannot feel the harmony and he believes that “under this peaceful exterior, his family harboured a smouldering volcano” (175). The only comfort that Chueh-hui got was from Ming Feng...
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...001 Economic Liberalization, the Changing Role of the State and ‘‘Wagner’s Law’’: China’s Development Experience since 1978 DAMIAN TOBIN * CeFiMS, SOAS, University of London, UK Summary. — The paper applies Wagner’s Law of increasing state activity to illustrate the changing function of the state in China as a consequence of economic liberalization. Wagner’s Law describes the association between increasing national wealth in progressive states and the rise in state activity and expenditure. This indicates that the causes of bureaucratic expansion are to be sought, not just in terms of political pressures, but the interplay between political considerations and the economic necessities, resulting from the emergence of new property rights. A simple illustrative model is developed to measure the effects of increasing national wealth and the growth of the public sector. This suggests that the patterns of economic development observed by Wagner in 19th century Europe are not unlike those observed in China today. Ó 2005 Elsevier Ltd. All rights reserved. Key words — Asia, China, economic growth, public sector 1. INTRODUCTION The relationship between economic growth and the size of the state sector has long been a topic of interest for public policy practitioners and academics alike. Throughout history, the role of the state has been critical in determining particular economic outcomes. Research in this area has in general focused on how economic policies impact upon economic growth...
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...Century In the history of economics, John Maynard Keynes is of the most influential people. He strongly influenced the economy and became widely recognized while he was still alive. The man who 75 years ago wrote an essay “The Economic Possibilities for our Grand Children” brought very important issues to our attention. Keynes wondered what kind of world our children would live in, and what sort of tools would they need to succeed and be happy. So what do we know about this extraordinary man, and how did his economic views change our lives? In order to know why Keynes was a successful economist, it is important to know where he came from. John Maynard Keynes was born June 5, 1883 in Cambridge England. His father was an economist and a lecturer at the University of Cambridge, and his mother was a local social reformer. With the assistance and coaching of his parents, Keynes was successful throughout his time in school. Many people were not surprised that Keynes became an economist since his father was a professor of economics. He was good at managing his own finances. His investments with foreign money made him a wealthy man. This allowed him to sponsor the classic ballet along with his Russian wife, a classic ballet dancer. In Grossak’s (1978) article he explains how Keynes did not plan on becoming an economist. He did not study economics until his senior year at college, and although his professors encouraged him to continue on with economics he chose a job in civil...
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...NBER WORKING PAPER SERIES ACCOUNTING FOR GROWTH: COMPARING CHINA AND INDIA Barry Bosworth Susan M. Collins Working Paper 12943 http://www.nber.org/papers/w12943 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2007 We are very indebted to Anthony Liu and Gabriel Chodorow-Reich for extensive assistance in understanding the data and constructing the growth accounts. This paper was presented at the annual conference of the Tokyo Club Foundation for Global Studies, December 6-7, 2006. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research. © 2007 by Barry Bosworth and Susan M. Collins. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Accounting for Growth: Comparing China and India Barry Bosworth and Susan M. Collins NBER Working Paper No. 12943 February 2007 JEL No. F43,O1,O4 ABSTRACT We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy. Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data...
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...Why Is China Growing So Fast? In 1978, after years of being control by the state of all productive assets, the government of China embraced a new major program of economic reform. In an effort to awaken a sleeping economic giant, it inspired the creation of enterprises and private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. This strategy has worked magnificently on nearly all accounts. In the beginning of 1978 China had seen annual growth of 6 percent a year (with some painful mistakes along the way), by the end of 1978 China saw average real growth of more than 9 percent a year with fewer and less painful ups and downs. Several years later, the economy grew more than 13 percent. In the last 15 years per capita income has nearly quadrupled, and thirty-six years ago a few analysts even believe that the Chinese economy will be larger than the United States in about 20 years. I am glad that was a myth but the United States probably needed to study China’s new reform economic giant. Though developments expanded property rights in the countryside and touched off a race to form small nonagricultural businesses in rustic areas. The prices were raised higher for agricultural products also led to more productive families, farms and more efficient use of labor. These forces encouraged many workers to move out of agriculture. As a result rapid growth of village...
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...began in Doha, Qatar, and negotiations have subsequently continued in: Cancún, Mexico; Geneva, Switzerland; and Paris, France and Hong Kong. [edit] ChinaBeginning around 1978, the government of the People's Republic of China (PRC) began an experiment in economic reform. In contrast to the previous Soviet-style centrally planned economy, the new measures progressively relaxed restrictions on farming, agricultural distribution and, several years later, urban enterprises and labor. The more market-oriented approach reduced inefficiencies and stimulated private investment, particularly by farmers, that led to increased productivity and output. One feature was the establishment of four (later five) Special Economic Zones located along the South-east coast. The reforms proved spectacularly successful in terms of increased output, variety, quality, price and demand. In real terms, the economy doubled in size between 1978 and 1986, doubled again by 1994, and again by 2003. On a real per capita basis, doubling from the 1978 base took place in 1987, 1996 and 2006. By 2008, the economy was 16.7 times the size it was in 1978, and 12.1 times its previous per capita levels. International trade progressed even more rapidly, doubling on average every 4.5 years. Total two-way trade in January 1998 exceeded that for all of 1978; in the first...
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...losses incurred during the war. The timing and severity of new policies enacted by the Crown and Parliament, starting with the Sugar Act of 1764 and ending with the Intolerable Acts of 1774, gave almost every colonist a common grievance, expediting the process of colonial unity against British rule (Walton/Rockoff 2010, pp. 93-107). Joseph D. Reid, Jr., a professor in economics, concludes in his paper that “conflict over economic issues best explains the length, intensity of, and participation in protest by the colonists” (Reid 1978, pp. 81-100). English mercantilism explains why Parliament passed certain taxes for the colonies. The goal of mercantilism was to achieve power and wealth for the state by acquiring large amounts of specie, and the mercantilists wanted to use legislation to regulate the economy in a way that helped Britain more than the colonies (Walton/Rockoff 2010, pp. 93-107). The Navigation Acts of 1651 set the stage for the revolution to come almost century later, although the Navigation Acts themselves were not all bad. In fact, the colonists were some of the lightly taxes people in the world (Reid 1978, pp. 81-100). However, the acts that followed infuriated the colonists. After the repeal of the Stamp Act of 1765, Charles Townshend, the new Chancellor of the Exchequer, the government department responsible for collecting taxes, passed the Townshend Acts, which imposed duties on tea, glass, paper, and tobacco, but most importantly imposed a customs board, undermining...
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...THE RISE OF ECONOMIC CONSEQUENCES The impact of accounting reports on decision making may be the most challenging accounting issue of the 1970s. by Stephen A. Zeff Since the 1960s, the American accounting profession has been aware of the increasing influence of "outside forces" in the standardsetting process. Two parallel developments have marked this trend. First, individuals and groups that had rarely shown any interest in the setting of accounting standards began to intervene actively and powerfully in the process. Second, these parties began to invoke arguments other than those which have traditionally been employed in accounting discussions. The term "economic consequences" has been used to describe these novel kinds of arguments. By "economic consequences" is meant the impact of accounting reports on the decisionmaking behavior of business, government, unions, investors and creditors. It is argued that the resulting behavior of these individuals and groups could be detrimental to the interests of other affected parties. And, the argument goes, accounting standard setters must take into consideration these allegedly detrimental consequences when deciding on accounting questions.* The recent debates involving foreign currency translation and the accounting for unsuccessful exploration activity in the petroleum industry have relied heavily on economic consequences arguCopyright © 1978 by Stephen A. Zeff. *Ed. note: For the opinion of an accounting standard setter, see Oscar...
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...on regional economic growth of China 1. Introduction Economic growth is always an important topic in the economics research. Many study in the past just considered region as an isolated “island”, and the mutual relations among different regions were usually ignored. However, regional economy is an open system. Factors such as trade, factor mobility (labor or capital), and technology or knowledge spillover will all make relations among regions become complicated. Under such circumstance, regional economy is no longer isolated but strongly related. The development of regional economy not only relies on its own endowment, also highly depends on the development of other regions This paper is going to bring relative spatial autocorrelation analysis and econometrics methods in the analysis of regional economic growth in China. It attempts to test the spatial dependence of economic growth among different provinces in China and its tendency. The inner mechanism of regional economic growth will also be discussed. In the second section, I will briefly introduce the literature review about regional economic study in China. In the third section, using a sample of per capita GDP data over 1978-2008 in 31 provinces in mainland China, I compute a global spatial autocorrelation, and use the local spatial autocorrelation to get general idea where this global spatial autocorrelation come from. In the fourth part, the spatial factors which influence regional economic growth will...
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...brit“No government was able to stem Britain’s economic decline from 1951-1990” Introduction: Whilst there is a blatant division of interpretations of Britain’s economic performances from 1951 to 1990, of those claiming that Britain suffered gradual and miserable decline until the heroine and saviour Mrs Thatcher came to the helm, or of those arguing that a genuine post-war boom existed throughout a large proportion of the era and Thatcher meddled unnecessarily and indeed harmfully, it is more accurate to take a balanced and differential approach. There is clear evidence of British economic decline from 1951-1990, but to claim that it was utter decline is really a pessimistic front. Reasons to disagree: - Period from 1951 to 1973 saw an “age of affluence”, with a genuine post-war boom; Britain’s economy grew around 40% during 1951 to 1964 - Living standards rose steadily until 1973, with low unemployment rates; with a wider sense that Britain was becoming more prosperous and equal. Harold Macmillan captured this in 1957, when he declared that “Britain had never had it so good”; it also highlighted increased consumerism due to greater accessibility to consumer goods throughout the era - Arguments of “relative decline” are unfair and misleading; nations such as Japan and Germany were utterly destroyed after WW2, so it only makes sense for their nations to advance rapidly as they could start from scratch - Arguments of a lack of policy and initiative are misleading. Macmillan...
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...(1940-70) Perspectives on Industrial Stagnation in India (1940-70) Abstract The paper seeks to analyse the factors causing the stagnation in the industrial sector in India after having relatively rapid industrialization post-independence period. This debate marked contrast to the relative consensus that prevailed in the professional economic circles in the sixties, attracted a great deal of scholarly attention to India. This paper seeks to analyze that lack of aggregate demand and inequality in income distribution as the possible reasons for the same also mentioning the other possible reasons and their respective criticisms. Contents Abstract 1 Introduction 2 Trends in Industrial Stagnation 3 Income Distribution and Demand Factor 5 Alternative views; Critiques and Conclusion 7 References 8 Introduction Post the independence period, the industrial sector in India saw a quadrupled growth in production and a marked diversification in structure and range of products produced. However, during the period 1950-75, the output saw varied growth levels, with 7.7% output growth in 1951-65 to 3.6% growth during 1965-75 (Nayyar, 1978). India had all the pre-requisite conditions of high growth in industrial sector; a large domestic market and resource base, a well-developed and large cadre of scientific and technical manpower, a substantial entrepreneurial class, a relatively stable political system with experienced bureaucracy, and a considerable involvement of the international...
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...Benjamin Le Ms. Duncan English CP 2B 23 May 2018 The Torch’s Flame: Israel’s First Female Prime Minister Only two of the thirty-seven signatories to the Israeli Declaration of Independence were women (“Establishment of Israel: Signatories to the Israeli Declaration of Independence”). One of those women became Israel’s first female Prime Minister: Golda Meir (“Golda Meir (1898-1978)”). In a country like Israel, where the constant threat of war or terrorism is prevalent, strong leaders were needed to safeguard the existence of a Jewish state (Sullivan and Koepp). From 1920 to 1974, Golda Meir spent decades in politics to protect the rights of Jewish refugees, worked in foreign affairs and labor, and became Israel’s first woman Prime Minister...
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...China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new economic superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in purchasing power terms around 2010. Such extrapolations can be supported by standard growth patterns identified in economic development and trade theories (structural change, catching up, and factor price equalization). They can also be supported by an explanation of China’s past GDP growth through growth of various labor variables, with a subsequent derivation of future GDP growth based on reliable information about future labor quantity and quality. China’s demographic changes and economic growth have a number of implications for China and the world. JEL codes: O1 (O10, O11), O4 (O40, O47), O53, J11, O3, I21 Keywords: economic growth, growth accounting, growth forecasts, development theories, human capital formation, education (all: China) Carsten A. Holz Social Science Division Hong Kong University of Science & Technology Clear Water Bay Kowloon Hong Kong E-mail: socholz@ust.hk Tel/Fax: +852 2719-8557 26 December 2006 (Incorporates minor revisions of the 3 July 2005 and 2 November...
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...Consumer Confidence and Economic Growth Introduction: Consumer confidence is a key driver of economic growth. It is widely considered an economic indicator of household consumption expenditure. Consumers tend to increase consumption when they feel confident about the current and future economic situation of the country and their own financial situation. In economies such as India and the US where personal consumption represents 66% and 71% of GDP respectively, consumer confidence has a particularly significant impact on the economy and can provide critical insight into its growth prospects. In simple terms, increased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending. The idea is that the more confident people feel about the economy and their jobs and incomes, the more likely they are to make purchases. Declining consumer confidence is a sign of slowing economic growth and may indicate that the economy is headed into trouble. This study examined the causal link between consumer confidence and economic growth in United States. Some economists, such as Langer (1991), are of the view that consumer confidence can reliably predict future consumer spending and thus, economic growth, while others are more skeptical arguing that “consumers cannot spend confidence” Lieberman (1991). Consumer confidence...
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