Double Transition Economics

Author: Chen Zongsheng
Publisher:
Publish Date: 2005-01-01
Features: The content of this book covers three major aspects: economic system reform, economic growth and development, and income distribution. The book is divided into five parts:
Part 1 consists of only one chapter, serving as a (thread) that discusses the broader context of China's operation and proposes the concept of the "dual transition": the transformation of the system model and the leap in development model.
Part 2 discusses institutional change, which is one aspect of the dual transition. It covers marketization progress, ownership reform, enterprise system reform, decision-making system reform, and the stages and environments of overall reform. It puts forward the view that the overall marketization process of China's economic system is approximately 60%, using agricultural marketization as a positive case and price management as a non-market-oriented negative case for illustration. It also proposes ideas and issues such as the mixed economic model with "relative dominant status" of public ownership, the "theory of entrepreneur sovereignty," the "theory of operational profit and loss responsibility," the "mechanism of microeconomic self-restraint," the "theory of decision-making system reform as the core," and the "theory of competitive environment constraints."
Part 3 discusses several issues related to economic development, which is the other aspect of the dual transition. It covers institutional change and development performance, economic growth models, speed, cycles, dual economy, agricultural development, labor mobility, unemployment, and inflation. It puts forward the "institutional school" view that institutional change constrains growth trends, the judgment that China's economy has moved from a low-income type to a "middle-income type," the long-term argument for growth model transformation, the theory of labor-intensive technology choice, the optimal growth speed indicator, and the transition of China's economy from a political cycle to a commercial cycle. It examines the degree and characteristics of China's economic dualization, the scale of agricultural development, the "wave of migrant workers," and especially the causes, current status, and prospects of unemployment, as well as countermeasures. It also discusses the "cost-plus inflation theory" and how to prevent stagflation.
Part 4 discusses income distribution, which is a recent topic of the author's research.
Part 5, as the final part, is relatively independent and consists of only one chapter, focusing specifically on the development direction of Chinese economics, normalization and localization, as well as the development and trends of development economics. It proposes a normative framework for economic research and the argument that "China needs development economics, and development economics also needs China."