Economic-social interaction in China

Assar Lindbeck

The Economics of Transition, 2008, vol. 16, issue 1, pages 113-139

Abstract: This paper analyzes economic-social interaction in China in connection with the country's change of economic system. I define an economic system in terms of a multi-dimensional vector of broad institutional characteristics, and I emphasize that important features of the social development are closely related to specific changes in these various dimensions. I classify China's options for future social improvements into three broad categories: (i) policies that improve the stability and distribution of factor income; (ii) government-created wedges between factor income and disposable income; and (iii) improvements in the quantity, quality and distribution of human services, such as education and healthcare. Copyright (c) 2008 The Author
Journal compilation (c) 2008 The European Bank for Reconstruction and Development .

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