Markets Over Mao: The Rise of Private Business in China
China's transition to a market economy has propelled its remarkable economic growth since the late 1970s. In this book, Nicholas R. Lardy, one of the world's foremost experts on the Chinese economy, traces the increasing role of market forces and refutes the widely advanced argument that Chinese economic progress rests on the government's control of the economy's "commanding heights." In another challenge to conventional wisdom, Lardy finds little evidence that the decade of the leadership of former President Hu Jintao and Premier Wen Jiabao (2003–13) dramatically increased the role and importance of state-owned firms, as many people argue. This book offers powerfully persuasive evidence that the major sources of China's growth in the future will be similarly market rather than state-driven, with private firms providing the major source of economic growth, the sole source of job creation, and the major contributor to China's still growing role as a global trader. Lardy does, however, call on China to deregulate and increase competition in those portions of the economy where state firms remain protected, especially in energy and finance.
1120259194
Markets Over Mao: The Rise of Private Business in China
China's transition to a market economy has propelled its remarkable economic growth since the late 1970s. In this book, Nicholas R. Lardy, one of the world's foremost experts on the Chinese economy, traces the increasing role of market forces and refutes the widely advanced argument that Chinese economic progress rests on the government's control of the economy's "commanding heights." In another challenge to conventional wisdom, Lardy finds little evidence that the decade of the leadership of former President Hu Jintao and Premier Wen Jiabao (2003–13) dramatically increased the role and importance of state-owned firms, as many people argue. This book offers powerfully persuasive evidence that the major sources of China's growth in the future will be similarly market rather than state-driven, with private firms providing the major source of economic growth, the sole source of job creation, and the major contributor to China's still growing role as a global trader. Lardy does, however, call on China to deregulate and increase competition in those portions of the economy where state firms remain protected, especially in energy and finance.
21.95 Out Of Stock
Markets Over Mao: The Rise of Private Business in China

Markets Over Mao: The Rise of Private Business in China

by Nicholas Lardy
Markets Over Mao: The Rise of Private Business in China
Add to Wishlist
Markets Over Mao: The Rise of Private Business in China

Markets Over Mao: The Rise of Private Business in China

by Nicholas Lardy

Overview

China's transition to a market economy has propelled its remarkable economic growth since the late 1970s. In this book, Nicholas R. Lardy, one of the world's foremost experts on the Chinese economy, traces the increasing role of market forces and refutes the widely advanced argument that Chinese economic progress rests on the government's control of the economy's "commanding heights." In another challenge to conventional wisdom, Lardy finds little evidence that the decade of the leadership of former President Hu Jintao and Premier Wen Jiabao (2003–13) dramatically increased the role and importance of state-owned firms, as many people argue. This book offers powerfully persuasive evidence that the major sources of China's growth in the future will be similarly market rather than state-driven, with private firms providing the major source of economic growth, the sole source of job creation, and the major contributor to China's still growing role as a global trader. Lardy does, however, call on China to deregulate and increase competition in those portions of the economy where state firms remain protected, especially in energy and finance.

Product Details

ISBN-13: 9780881326932
Publisher: Peterson Institute for International Economics
Publication date: 09/10/2014
Edition description: New Edition
Pages: 186
Product dimensions: 6.00(w) x 9.00(h) x (d)
Age Range: 18 Years

About the Author

Nicholas R. Lardy, called "everybody's guru on China" by the National Journal, is a senior fellow at the Peterson Institute for International Economics. He joined the Institute in March 2003 from the Brookings Institution, where he was a senior fellow in the Foreign Policy Studies Program (1995-03) and served as interim director of Foreign Policy Studies (2001). Lardy has written numerous articles and books on the Chinese economy including Debating China's Exchange Rate Policy (2008), China: The Balance Sheet (2006), Prospects for a US-Taiwan Free Trade Agreement (2004), Integrating China into the Global Economy (2002), and China's Unfinished Economic Revolution (1998). Lardy is a member of the Council on Foreign Relations and is a member of the editorial boards of the China Quarterly, Journal of Asian Business, China Review, and China Economic Review.

Table of Contents

Preface ix

Acknowledgments xiii

Introduction 1

1 State versus Market Capitalism 11

Product Markets 12

Labor and Capital Markets 16

Competition 23

Evolving Role of Economic Planning 38

2 Reform of State-Owned Enterprises 43

Grasping the Large, Releasing the Small 45

Emergence of SASAC 48

Did the Hu-Wen Reforms Succeed? 55

3 Rise of the Private Sector 59

Changing Structure of Ownership 60

Role of Private Firms in Generating Employment and Exports 82

Explaining the Growth of the Private Sector 89

4 Implementing the Reform Agenda 123

State Firms Drag Down Growth 124

The Opportunity in Services 128

Financial Sector Reform 135

Power of the Chinese State in Perspective 138

Debating the Role of the Market 146

Appendix A Alternative Measures of Private Sector Credit 157

Appendix B State versus Private Borrowing Costs 163

References 167

Index 177

Tables

1.1 Price formation in the reform era by commodity type, 1978-2003 15

1.2 Losses of state industrial firms, 1978-2012 34

2.1 Profits of central SASAC firms, 2002-13 56

3.1 Enterprises classification system 64

3.2 Private enterprise and household business classification system 65

3.3 Individual businesses and registered private enterprises in China, 2002-12 70

3.4 Private enterprises by sector, 2009 72

3.5 Employees of individual businesses by sector, 2009 73

3.6 State share of industrial output by subsectors, 2011 77

3.7 Urban registered private enterprise and individual business employment, 1978-2012 83

3.8 Urban employment in privately controlled firms, 2011 85

3.9 Loans by financial institutions to private businesses, 1980-2013 101

4.1 Investment in modern services by firm ownership, 2012 135

4.2 Public sector employment, 1999-2011 139

A.1 Short-term loans to private and individual businesses, 1980-2009 158

A.2 Loans outstanding to private-controlled enterprises, 2009-12 161

A.3 Consumption loans to households, 1997-2013 161

A.4 Total bank loans outstanding to the private sector, 2009-12 162

Figures

1.1 Profit margins m Chinese industry by ownership, 1985-2013 27

1.2 Profit margins of state nonfinancial corporations, 2000-2013 29

3.1 Alternative measures of the private share of value-added industrial output, 2003 and 2007 74

3.2 Gross industrial output of state enterprises, 1978-2011 75

3.3 Sources of Chinese exports by ownership status, 1995-2013 87

3.4 Retained corporate earnings as a share of corporate investment, 1992-2011 96

3.5 Return on assets of state and private industrial enterprises, 1996-2012 98

3.6 Flow of enterprise loans by ownership, 2010-12 105

3.7 Stock of enterprise loans by ownership, 2009 and 2012 106

3.8 Interest coverage ratio of state and private industrial enterprises, 1996-2012 110

From the B&N Reads Blog
Page 1 of

Related Subjects

Current Affairs & Politics
Economics & Politics
Economic Policies
General Economic Policies
Current Affairs & Politics
Economics & Politics
Economic Policies
General Economic Policies

Customer Reviews