VII Conclusions
Author:
Mr. Michael W. Bell
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,
Ms. Kalpana Kochhar
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Hoe Ee Khor https://isni.org/isni/0000000404811396 International Monetary Fund

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Language:
English
Print Publication Date:
16 Jun 1993
Keywords:
OP; enterprise; economy; government; market forces; state; policy implication; strategy of opening; a number of factor; China's strategy; state enterprise sector; Public sector

Abstract

The purpose of this paper has been to review the evolution of market-oriented reforms in China, assess the impact on the economy, and draw policy implications for framing future reform strategy. A number of factors are pertinent in explaining China’s experience with reforms over the past decade and a half. First, the initial macroeconomic conditions were relatively favorable. Growth had been maintained in the pre-reform period—albeit by means of very high investment—while inflation and the balance of payments had been kept under tight control. Moreover, China started its reform with virtually no external debt and was thus able to maximize the benefit of the sustained inflow of foreign resources in support of its reform efforts from official development assistance, commercial borrowing, and foreign direct investment. In the latter regard, China’s unique relationship with Hong Kong and Taiwan Province of China has been critical in aiding the flow of physical, financial, and other intangible resources.

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Cover China at the Threshold of a Market Economy
China at the Threshold of a Market Economy
ISBN:
9781557753496
ISSN:
0251-6365
Publication Date:
16 Jun 1993
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557753496.084
Pages:
104

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