Center for Economic Research, Department of Economics, University of Minnesota
This paper analyzes the Chinese experience of gradual transition with rapid growth
(1978-1993) in the world economy. The rapid growth is decomposed into four sources:
population/labor-led growth, privatization-led growth, industrialization-led growth and
trade/leader-led growth. The growth of China's economy in the 1990s would be at least as
fast as in the 1980s, provided there were no political/military turmoil. These results are
based on the combination of historical, statistical and theoretical approaches, and on our
theoretical analyses of the relationships among transition, industrialization, growth and
development. We present stylized facts on transition and growth, and construct
conceptual frameworks to match these facts. In particular, we show that a gradualism (big
bang) transition may result in growth and inflation (depression and hyperinflation), and a
follower with sufficient (insufficient) social capability would catch up to (fall behind) the
Gong, C. and Li, S., (1994), "Transition with Growth: The Chinese Experience in the World Economy", Discussion Paper No. 271, Center for Economic Research, Department of Economics, University of Minnesota.
Gong, Changzhen; Li, Shuhe.
Transition with Growth: The Chinese Experience in the World Economy.
Center for Economic Research, Department of Economics, University of Minnesota.
Retrieved from the University of Minnesota Digital Conservancy,
Content distributed via the University of Minnesota's Digital Conservancy may be subject to additional license and use restrictions applied by the depositor.