This paper advances an alternative explanation of the large external imbalance between the United States and China, and its linkages to the current global financial crisis. We show that US current account deficits dated back long before the emergence of China's recent large trade surpluses, with...

This paper draws on both successful and failing cases of industrialization in China to analyse the role of local governments in fostering the growth of light manufacturing. The broad spectrum of support types and the intimate knowledge of enterprise conditions by these local governments make...

Many transition policies, based on neoclassical economics, failed in Eastern Europe, the former Soviet Union, and China. This paper argues that the failure is due to the viability assumption in neoclassical economics. Neoclassical economics implicitly assumes that a firm is expected to earn a...

New structural economics is a new framework for rethinking economic development following structuralism and neoliberalism after World War II. This framework uses a neoclassical approach to study the determinants of economic structure and its evolution in a country's economic development (Lin,...

Myrdal did not cover China in his Asian Drama. If he did, he would have been most likely pessimistic about China, as he was about other Asian countries in his book. However, China has achieved miraculous growth since the transition from a planned economy to a market economy at the end of 1978....

This paper draws on both successful and failing cases of industrialization in China to analyse the role of local governments in fostering the growth of light manufacturing. The broad spectrum of support types and the intimate knowledge of enterprise conditions by these local governments make...