Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China

A key objective of China's reform program was to reduce distortions in the economic system and enhance growth. However, when implemented in incremental and partial ways, local governments or individuals have chance to capture rents inherent in the reform process. Young (2000) warned that the rent-se...

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Main Authors: Zhang, Xiaobo, Tan, Kong-Yam
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2004
Subjects:
Online Access:https://hdl.handle.net/10568/156142
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author Zhang, Xiaobo
Tan, Kong-Yam
author_browse Tan, Kong-Yam
Zhang, Xiaobo
author_facet Zhang, Xiaobo
Tan, Kong-Yam
author_sort Zhang, Xiaobo
collection Repository of Agricultural Research Outputs (CGSpace)
description A key objective of China's reform program was to reduce distortions in the economic system and enhance growth. However, when implemented in incremental and partial ways, local governments or individuals have chance to capture rents inherent in the reform process. Young (2000) warned that the rent-seeking behavior might lead to increasing market fragmentation. Empirical studies have since shown that this did not happen in the product markets. In this paper we argue that as rents from the product markets were squeezed out during the reform process, rent-seeking behavior shifted to the factor markets, especially the capital and land markets. The reform process now needs to be deepened to ensure that the factor markets also become more integrated and efficient. -- Authors' Abstract
format Artículo preliminar
id CGSpace156142
institution CGIAR Consortium
language Inglés
publishDate 2004
publishDateRange 2004
publishDateSort 2004
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
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spelling CGSpace1561422025-11-06T05:01:58Z Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China Zhang, Xiaobo Tan, Kong-Yam markets equality integrated markets economics economic growth local government economic theories commodity markets land markets economic systems A key objective of China's reform program was to reduce distortions in the economic system and enhance growth. However, when implemented in incremental and partial ways, local governments or individuals have chance to capture rents inherent in the reform process. Young (2000) warned that the rent-seeking behavior might lead to increasing market fragmentation. Empirical studies have since shown that this did not happen in the product markets. In this paper we argue that as rents from the product markets were squeezed out during the reform process, rent-seeking behavior shifted to the factor markets, especially the capital and land markets. The reform process now needs to be deepened to ensure that the factor markets also become more integrated and efficient. -- Authors' Abstract 2004 2024-10-24T12:43:19Z 2024-10-24T12:43:19Z Working Paper https://hdl.handle.net/10568/156142 en Open Access application/pdf International Food Policy Research Institute Zhang, Xiaobo; Tan, Kong-Yam. 2004. Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China. DSGD Discussion Paper 13. https://hdl.handle.net/10568/156142
spellingShingle markets
equality
integrated markets
economics
economic growth
local government
economic theories
commodity markets
land markets
economic systems
Zhang, Xiaobo
Tan, Kong-Yam
Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title_full Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title_fullStr Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title_full_unstemmed Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title_short Blunt to sharpened razor: incremental reform and distortions in the product and capital markets in China
title_sort blunt to sharpened razor incremental reform and distortions in the product and capital markets in china
topic markets
equality
integrated markets
economics
economic growth
local government
economic theories
commodity markets
land markets
economic systems
url https://hdl.handle.net/10568/156142
work_keys_str_mv AT zhangxiaobo blunttosharpenedrazorincrementalreformanddistortionsintheproductandcapitalmarketsinchina
AT tankongyam blunttosharpenedrazorincrementalreformanddistortionsintheproductandcapitalmarketsinchina