China's two main economic problems before reform were low incentives to workers and the misallocation of resources among sectors. These problems were theresult of a development strategy oriented toward heavy industry. By improving material incentives, China's reforms created a flow of new...

Each institutional arrangement in a financial system has both advantages and disadvantages in mobilizing savings, allocating capital, diversifying risks, and processing information when facilitating financial transactions. Meanwhile, the factor endowment in an economy at each stage of its...

In order to continue on the path to convergence with advanced countries, emerging countries need to strengthen their research capabilities. Often they try to do this through the development of strategic industries. The objective of this paper is to contribute to the debate on the effectiveness...

This paper presents a three-sector static model to explore the rationale for a series of institutional distortions in developing countries. The authors argue that, after World War II, motivated by a belief in the development of state-of-the-art industries as a means for nation building, the...

This paper briefly reviews the economic performance of China's economic reform starting in 1978, and which it presents personal views on the experiences of Korea's economic development and lessons for China's economic reform. The paper reviews the China-Korea economic relationship, and explores...

Despite the phenomenal success of China's economic reform, the Chinese economy encounters a series of increasingly perilous problems, such as the recurrence of a "boon-and-bust" cycle, inflation, corruption, and regional disparity. This paper argues that the root of these problems is the...