Abstract
The Chinese economy has long been characterised by multilevel planning, with local governments controlling nearly half of total industrial output and allocating substantial resources.2 Because of the continuing important role played by local governments, market reforms in the 1980s have not brought a straightforward transfer of decision-making authority from central government to enterprises. Instead, there has been a good deal of ‘leakage’ in the reform process, with local governments retaining and even expanding control over enterprises through a variety of informal mechanisms, as well as through their control over geographically immobile factor resources. This chapter looks at the local sector and how market reforms have affected it. The term ‘local’ will mean administrative levels below the central government: province, municipality, prefecture, county, township and village.3
An earlier version of this chapter was published in Journal of Comparative Economics, vol. 11, 1987, pp. 385–98 (copyright © 1987 Academic Press, Inc.). It is reprinted here with permission.
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© 1989 Stanislaw Gomulka, Yong-Chool Ha and Cae-One Kim
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Wong, C.P.W. (1989). Between Plan and Market: The Role of the Local Sector in Post-Mao Reforms in China. In: Gomulka, S., Ha, YC., Kim, CO. (eds) Economic Reforms in the Socialist World. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-10668-4_4
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DOI: https://doi.org/10.1007/978-1-349-10668-4_4
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