I present a unified theoretical framework that attributes output collapse to price liberalization and decentralization of the formerly integrated monopolistic industrial structure in the former Soviet bloc, and output expansion in China to marginal marketization and intramarginal regulation. In...

The effectiveness of China's incremental industrial reform between 1980--89 is empirically investigated using a panel data set of 769 state enterprises from 36 2--digit industries. I derive and apply a method that measures marginal products of factors, changes in total factor productivity (TFP),...