 Achieving Equity and Efficiency Simultaneously in the Primary Distribution Stage in the People’s Republic of ChinaJustin Yifu Lin and Peilin Liu Asian Development Review (ADR), 2008, vol. 25, issue 01n02, 34-57 Abstract: This paper establishes a theoretical framework addressing the long-debated issue of efficiency and equity. Empirical evidence shows that a comparative-advantage-following development strategy promotes growth and narrows the income gap, achieving both efficiency in production and equity in income distribution. A review of the past three decades of reform reveals that development in line with the comparative advantage of the People’s Republic of China accounts for its outstanding economic performance. The dominant causes of the country’s current problems are the remaining distortions in prices and government interventions in resource allocation. Therefore, to put the government’s “scientific development outlook†into practice and to realize development with quality and speed, the country should deepen market-oriented transformation by eliminating these distortions and interventions. The inclusiveness of development can be further strengthened with financially sustainable social security and transfer payment policies. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wsi:adrxxx:v:25:y:2008:i:01n02:n:s0116110508500054 Ordering information: This journal article can be ordered from DOI: 10.1142/S0116110508500054 Access Statistics for this article Asian Development Review (ADR) is currently edited by Tetsushi Sonobe More articles in Asian Development Review (ADR) from World Scientific Publishing Co. Pte. Ltd. |
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