Content introduction：

No. E2018008

China's Growth Miracle in the context of Asian Transformation

Justin Lin Yifu

 

Abstract:

Myrdal did not cover China in his Asian Drama. If he did, he would have been most likely pessimistic about China as about other Asian countries in his book. However. China has achieved a miraculousgrowth since the transition from a planned economy to a market economy at the end 1978. This paper provides answers to the questions: Why was China trapped in poverty before 1978? Why was it possible for China to achieve an extraordinary performance during its transition? Why did most other transition economies failed to achieve a similar performance? What prices did China pay for its success ? Can China continue the dynamic growth in the coming decades? What lessons can we draw from China's development experiences in view of the Asian Drama. The paper concludes with a positive note: If a developing country adopts a pragmatic approach to develop its economy along its comparative advantages in a market economy and tap into the potential of latecomer advantages with a facilitating state, the country can grow dynamically like China.

 

Keywords: Development, Transition, Role of state, Chinese economy, Rethinking of economics

 

JEL codes: N15, 010, Pll