Dual track liberalization is a reform strategy in which a market track is introduced while the plan track is maintained at the same time. Dual track liberation is Pareto improving in the sense that it makes some people better off without making anybody worse off. Because prices are liberalized at the margin, dual track liberalization can also achieve efficiency. China used the dual track reform strategy in liberalizing many markets such as the markets of agricultural goods, industrial goods, consumer goods, foreign exchange, and labour, as well as in creating special economic zones.
Allocative efficiency China, economics in Compensatory transfers Corruption Dual track liberalization Foreign exchange control Market liberalization Pareto efficiency Planning Price control Price liberalization Rationing Rent seeking Special economic zones (China)
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