B. Naughton, WHAT IS DISTINCTIVE ABOUT CHINA ECONOMIC TRANSITION - STATE ENTERPRISE REFORM AND OVERALL SYSTEM TRANSFORMATION, Journal of comparative economics, 18(3), 1994, pp. 470-490
Entry of nonstate industrial firms has played a crucial role in China'
s reform process by creating markets and competition. Yet the state-ow
ned sector has also performed adequately, improving incentives and pro
ductivity, and turning in a respectable growth performance. Moderate i
mprovements in the state sector have thus supported a virtuous cycle o
f reform. Simple contrasts between state and private ownership systems
therefore explain little of China's apparently successful combination
of reform and growth. (C) 1994 Academic Press, Inc.