This course introduces students to the present-day economy of China, focusing on the reform and transitional issues. The central themes in this course are involved with popular questions such as: Why can Chinese economy grow so rapidly? Is this fast growth sustainable? What kind of the role does the government play in China’s economic transition? And what kind of challenges China faces? Answers to these questions are usually not simple. This course therefore provides a framework for students to understand and analyze economic issues in a transitional economy like China.
The course starts with a brief review of China’s economic history and basic elements of a socialist, centrally planned economy in the perspective of comparative economic systems. After analyzing various major transition issues, including the ownership reforms, the power and the limit of market forces and the necessities and difficulties in establishing market-oriented institutions. We conclude this course by summarizing transition experiences and deriving lessons from those valuable experiences.
Students are required to work on an individual or term research project. At the end of the semester, each group will submit their term paper with their research findings. Marks will be mainly based on the insights that the paper brings. It is therefore very important to develop a coherent, convincing and logically correct analytical framework in the research paper.
Prerequisites:
Introductory Microeconomics and Macroeconomics
Attendance policy:
Students are expected to attend all classes. The maximum number of emergency absences is two times. After that the student is docked one letter grade per absence. Students should arrive in the classroom in time. Being late more than 10 minutes is counted as an emergency absence.
Method of presentation:
Lecture Based
Required work and form of assessment:
Class participation and debate 20%
Homework assignments 20%
Midterm reflection paper 30%
Final exam 30%
Students are required to produce FOUR 1-2 page notes on observations or reflections on conversations had with Chinese people about a given topic posed by the instructor. The instructor will offer six or seven topics throughout the semester based on the week’s readings. Students choose FOUR of the topics. Grading will be based on a PASS/FAIL system which assesses the quality of conversation or observation and ability to analyze the observation/conversation in context with the course’s readings. Students with lower level language skills are encouraged to observe where those with higher language skills are encouraged to converse.
Mid-Term Short Reflection Paper: It should be 3-5 pages in length, typed. It should demonstrate a student’s strength and scope in reflecting on one sub-topic covered by the part A of the course. This needs to be explained more clearly.
Final Exam: 1.5 HOUR EXAM (LAST DAY OF CLASS). CONCEPT IDENTIFICATION AND CHOICE OF TWO SHORT ESSAY QUESTIONS.
content:
PART A (MACRO)
1. Overview of the Chinese economy
Required Weekly Reading
1. Dutta M., 2005, China’s industrial revolution: challenges for a macroeconomic agenda, Journal of Asian Economics 15, 1169-1202。
2. Allen F., J.Qian and M.Qian, 2005, Law, finance, and economic growth in China, Journal of Financial Economics 77, 57-116.
Recommended Weekly Reading
1. Boltho A., 2004, China-can rapid economic growth continue?, the Singapore Economic Review 49, 255-272.
2. Gregory Chow, 1997, Challenges of China’s economic system for economic theory, American economic review, 87, 321-327.
2. International Trade and FDI
Required Weekly Reading
1. Rodrik D., 2006, What is so special about China’s exports?, NBER working paper 11947
2. Gao T., 2005, Foreign direct investment in China: how big are the roles of culture and geography?, Pacific Economic Review 10, 153-166.
Recommended Weekly Reading
1. Peter K. Schott, 2006, The relative sophistication of Chinese exports, NBER working paper 11947.
2. Prasad E. and S.Wei, 2005, The Chinese approach to capital inflows: patterns and possible explanations, NBER working paper 11306.
3. China's banking system in transition
Required Weekly Reading
1. Alicia Garca-Herrero, Sergio Gavilay and Daniel Santabarbara, 2006, China’s Banking Reform: An Assessment of its Evolution and Possible Impact, CESifo Economic Studies, Vol. 52, 2/2006, 304–363.
2. Yoon Je Cho, 2000, The Banking System of the People’s Republic of China, working paper Soqang University, Seoul Korea.
Recommended Weekly Reading
1. Liping He, Xiaohang Fan, 2004, Foreign Banks in Post-WTO China: An Intermediate Assessment, China & World Economy, Vol. 12, iss 5, 3-16.
2. Holz, Carsten A., 2001, Economic Reforms and State Sector Bankruptcy in China, China Quarterly, v.0, iss. 166, pp. 342-67
4. Taxation/Public finance
Required Weekly Reading
1. Zeng Guoxiang, 2000, An analysis of China’s taxation system and Its future development, ATAX discussion paper Series No. 2.
2. Jin, Jing; Zou, Heng-fu,Fiscal, 2006, Decentralization, Revenue and Expenditure Assignments, and Growth in China, Journal of Asian Economics, December 2005, v. 16, iss. 6, pp. 1047-64
Recommended Weekly Reading
1. Kai-yuen Tsui, 2005, Local tax system, intergovernmental transfers and China’s local fiscal disparities, Journal of Comparative Economics 33: 173–196
2. Mun-Heng TOH and Qian LIN, 2004, the 1994 tax reform in China using a general equilibrium model, China Economic Review 16, 246– 270.
5. Labor market reform
Required Weekly Reading
1. John Giles, Albert Park and Fang Cai, 2006, How has Economic Restructuring Affected China’s Urban Workers?, The China Quarterly, 61-95
2. John GILES, Albert PARK and Juwei ZHANG, 2005, What is China’s true unemployment rate? China Economic Review 16 , 149–170
Recommended Weekly Reading
1. Xue, Jinjun and Zhong Wei, 2003, Unemployment, Poverty and Income Disparity in Urban China , Asian Economic Journal, v. 17, iss. 4, pp. 383-405
2. Wu Zhongmin, 2003, The Persistence of Regional Unemployment: Evidence from China, Applied Economics, v. 35, iss. 12, pp. 1417-21.
PART B (MICRO)
(Readings other than required are mainly for the purpose of warping up a research idea for term paper)
6. Industrial Reform
Required Weekly Reading
1. David D. Li (1996), A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector, Journal of Comparative Economics 23, 1–19
2. Francesca Cornelli and David D. Li (1997), Large shareholders, private benefits of control and optimal scheme of privatization, RAND Journal of Economics, 28(4): 585-604
3. Theodore Groves, Yongmiao Hong, John McMillan and Barry Naughton (1995), China’s evolving managerial labor market, Journal of Political Economy, 103(4): 873-892
4. Dongwei Su (2005), Corporate finance and state enterprise reform in China, China Economic Review 16: 118– 148
5. Donald C. Clarke (2003), Corporate governance in China: An overview, China Economic Review 14: 494– 507
Recommended Weekly Reading
1. Mei Wen (2004), Bankruptcy, sale, and mergers as a route to the reform of Chinese SOEs, China Economic Review 15: 249– 267
2. Hung-Gay Fung, Donald Kummer and Jinjian Shen (2006), China’s Privatization Reforms Progress and Challenges, The Chinese Economy, vol. 39, no. 2, 5–25.
3. Shuanglin Lin and Wei Rowe (2006), Determinants of the profitability of China’s regional SOEs, China Economic Review 17:120– 141
4. Gary Jefferson, Albert G.Z. Hu, Xiaojing Guan and Xiaoyun Yu (2003), Ownership, performance, and innovation in China’s large- and medium-size industrial enterprise sector, China Economic Review 14: 89– 113
5. Wai-Ming Fong and Kevin C.K. Lam (2004), Privatization and Performance: The Experience of Firms in China, The Chinese Economy, vol. 37, no. 4, 5–27
6. Anming Zhang, Yimin Zhang and Ronald Zhao (2002), Profitability and productivity of Chinese industrial firms: Measurement and ownership implications, China Economic Review 13: 65–88
7. David D. Li (1998) Insider control and the soft budget constraint: a simple theory, Economics Letters 61: 307–311
8. Jiahua Che and Yingyi Qian (1998), Insecure property rights and government ownership of firms, Quarterly Journal of Economics, 113(2): 467-496
9. Hehui Jin and Yingyi Qian (1998), Public versus private ownership of firms: evidence from rural China, Quarterly Journal of Economics, 113(3): 773-808
10. Yingyi Qian and Gerard Roland (1996), The soft budget constraint in China, Japan and the World Economy, 8:207-223,
11. Gongmeng Chen, Michael Firth and Oliver Rui (2006), Have China’s enterprise reforms led to improved efficiency and profitability?, Emerging Markets Review 7: 82–109
12. Thomas Rawski (1994), Chinese industrial reform: accomplishments, prospects and implications, American Economic Review, 84(2) 271-275
13. Yifu Lin, Fang Cai and Zhou Li (1998), Competition, policy burdens and State-Owned Enterprise Reform, American Economic Review, 88(2): 422-427, 14. Wei Li (1997), The impact of economic reform on the performance of Chinese state enterprises, 1980-1989, Journal of Political Economy, 105(5): 1080-1106
15. Chong-En Bai, Qiao Liu, Joe Lu, Frank M. Song and Junxi Zhang (2004), Corporate governance and market valuation in China, Journal of Comparative Economics 32: 599–616
16. Chong-En Bai and Lixin Colin Xu (2005), Incentives for CEOs with multitasks: Evidence from Chinese state-owned enterprises, Journal of Comparative Economics 33: 517–539
17. Qunyan Sun, Anming Zhang and Jie Li (2005), A study of optimal state shares in mixed oligopoly: Implications for SOE reform and foreign competition, China Economic Review 16: 1– 27
18. Chun Chang, Brian P. McCall and Yijiang Wang (2003), Incentive contracting versus ownership reforms: evidence from China’s township and village enterprises, Journal of Comparative Economics 31: 414–428
19. Xiangkang Yin (2001), A dynamic analysis of overstaff in China’s state-owned enterprises, Journal of
Development Economics, 66: 87–99
20. Carsten A. Holz (2002), The impact of the liability–asset ratio on profitability in China’s industrial state-owned enterprises, China Economic Review, 13: 1–26
21. Zhigang Tao and Tian Zhu (2000), Agency and Self-Enforcing Contracts, Journal of Comparative Economics 28: 80–94
22. Xinzhu Zhang (2000), Incentives in allocation of policy loans, European Economic Review 44: 785-796
23. Chong-en Bai and Yijiang Wang (1998), Bureaucratic Control and the Soft Budget Constraint, Journal of Comparative Economics 26, 41–61
24. Jon Cauley, Richard Cornes and Todd Sandler (1999), Stakeholder incentives and reforms in China’s state-owned enterprises: A common-property theory, China Economic Review 10: 191–206
7. Regulation, Procurement and Antitrust
Required Weekly Reading
1. Jean-Jacques Laffont and Yingyi Qian (1999), The dynamics of reform and development in China: A political economy perspective, European Economic Review 43:1105-1114
2. Alwyn Young (2000), The razor’s edge: distortions and incremental reform in the People’s Republic of China, Quarterly Journal of Economics, 115(4): 1091-1135
3. Yingyi Qian and Gerard Roland (1998), Federalism and the soft budge constraint, American Economic Review, 88(5): 1143-1162
4. Lawrence Lau, Yingyi Qian and Gerard Roland (2000), Reform without losers: an interpretation of China’s dual-track approach to transition, Journal of Political Economy, 108(1): 120-143
Recommended Weekly Reading
1. David D. Li (1998), Changing incentives of the Chinese bureaucracy, American Economic Review 88(2): 393–397
2. Hehui Jin, Yingyi Qian and Barry R. Weingast (2005), Regional decentralization and fiscal incentives: Federalism, Chinese style, Journal of Public Economics 89: 1719–1742
3. David Da-hua Yang (2005), Corruption by monopoly: Bribery in Chinese enterprise licensing as a repeated bargaining game, China Economic Review 16: 171–188
4. Jie Li, Larry D. Qiu and Sun, Qunyan (2003), Interregional protection: Implications of fiscal decentralization and trade liberalization, China Economic Review 14: 227– 245
5. Belton M. Fleisher and Dennis T. Yang (2003), Labor laws and regulations in China, China Economic Review 14: 426– 433
6. Jijian Yang (2002), Market Power in China: Manifestations, Effects and Legislation, Review of Industrial Organization 21: 167–183
7. Yasheng Huang (2003), One country, two systems: Foreign-invested enterprises and domestic firms in China, China Economic Review 14: 404– 416
8. Daniel C.K. Chow (2003), Organized crime, local protectionism, and the trade in counterfeit goods in China, China Economic Review 14: 473– 484
9. Liangchun Yua, Sanford Berg and Qing Guo(2004), Market performance of Chinese telecommunications: new regulatory policies, Telecommunications Policy 28: 715–732
8. Energy and Environment
Required Weekly Reading
1. Paul Crompton and Yanrui Wu (2005), Energy consumption in China: past trends and future directions, Energy Economics 27: 195– 208
2. Hua Wang and David Wheeler (2005), Financial incentives and endogenous enforcement in China’s pollution levy system, Journal of Environmental Economics and Management 49: 174–196
Recommended Weekly Reading
1. Paul A. Steenhof (2006), Decomposition of electricity demand in China's industrial sector, Energy Economics 28: 370–384
2. Karen Fisher-Vanden (2003), The effects of market reforms on structural change: implications for energy use and carbon emissions in China, The Energy Journal, 24(3): 27-62
3. ZhongXiang Zhang (2003), Why did the energy intensity fall in China’s industrial sector in the 1990s? The relative importance of structural change and intensity change, Energy Economics 25: 625–638
4. Karen Fisher-Vanden, Gary H. Jefferson, Hongmei Liu and Quan Tao (2004), What is driving China’s decline in energy intensity? Resource and Energy Economics 26: 77–97
5. Hua Wang (2002), Pollution regulation and abatement efforts: evidence from China, Ecological Economics 41: 85–94
6. Maximilian Auffhammer, Richard T. Carson and Teresa Garin-Munoz (2004), Forecasting China’s Carbon Dioxide Emissions: A Provincial Approach, Working paper, University of California, Berkeley
7. Chaoyang Peng, Xiaodong Wu, Gordon Liu, Todd Johnson, Jitendra Shah and Sarath Guttikunda (2002), Urban Air Quality and Health in China, Urban Studies, 39(12): 2283–2299,
8. Judith M. Dean (2002), Does trade liberalization harm the environment? A new test, Canadian Journal of Economics, 35(4): 819-942
9. Victor Brajer and Robert W. Mead (2004), Valuing Air Pollution Mortality in China’s Cities, Urban Studies, 41(8): 1567–1585,
10. Jie He (2005), Estimating the economic cost of China’s new desulfur policy during her gradual accession to WTO: The case of industrial SO2 emission, China Economic Review 16: 364– 402
11. Fahua Zhu, Youfei Zheng, Xulin Guo and Sheng Wang (2005), Environmental impacts and benefits of regional power grid interconnections for China, Energy Policy 33: 1797–1805
12. ZhongXiang Zhang (2003), Why did the energy intensity fall in China’s industrial sector in the 1990s? The relative importance of structural change and intensity change, Energy Economics 25: 625–638
9. Health care and Inequality
Required Weekly Reading
1. Keyong Dong and Xiangfeng YE (2003), Social security system reform in China, China Economic Review 14: 417– 425
2. H. Naci Mocan, E. Tekin and J. Zax (2004), The Demand for Medical Care in Urban China, World Development 32(2): 289–304
Recommended Weekly Reading
1. Linxiu Zhang, Alan De Brauw and Scott Rozelle (2004), China’s rural labor market development and its gender implications, China Economic Review 15: 230– 247
2. Guanghua Wan (2005), Convergence in food consumption in Rural China: Evidence from household survey data, China Economic Review 16: 90– 102
3. John A. Bishop, Feijun Luo and Fang Wang (2005), Economic transition, gender bias, and the distribution of earnings in China, Economics of Transition, 13 (2): 239–259
4. Bjorn Gustafsson and Li, Shi (2004), Expenditures on education and health care and poverty in rural China, China Economic Review 15: 292– 301,
5. Shujie Yao, Zongyi Zhang and Lucia Hanmer (2004), Growing inequality and poverty in China, China Economic Review 15: 145– 163,
6. Derek C. Jones, Cheng Li and Ann L. Owen (2003), Growth and regional inequality in China during the reform era, China Economic Review 14: 186–200
7. Hiroshi Sato (2006), Housing inequality and housing poverty in urban China in the late 1990s, China Economic Review 17: 37– 50,
8. Thomas Hertel and Fan Zhai (2006), Labor market distortions, rural–urban inequality and the opening of China’s economy, Economic Modelling 23: 76– 109
9. Lin, Zhifen (2004), Regional Disparities in Social Security in China and Transfer Payments, The Chinese Economy, vol. 37, no. 5: 59–73
10. Ding Lu (2002), Rural–urban income disparity: impact of growth, allocative efficiency, and local growth welfare, China Economic Review 13: 419–429
11. Xiaobo Zhang and Ravi Kanbur (2004), Spatial inequality in education and health care in China, China Economic Review 16: 189–204
10. Site Visit
11. Infrastructure: telecom, power, transportation, water, postal service etc.
Required Weekly Reading
1. Jean-Jacques Laffont (2004), Management of Public Utilities in China, Annals of Economics and Finance, 5, 185-210
Recommended Weekly Reading
2. Shenggen FAN and Xiaobo ZHANG (2004), Infrastructure and regional economic development in rural China, China Economic Review 15: 203– 214
3. Qingyang Gu and Kang Chen (2005), A multiregional model of China and its application, Economic Modelling 22: 1020– 1063
4. Liangchun Yua, Sanford Berg and Qing Guo (2004), Market performance of Chinese telecommunications: new regulatory policies, Telecommunications Policy 28: 715–732
5. Shenggen Fan and Connie Chan-Kang (2005), Road Development, Economic Growth, and Poverty Reduction in China, Research Report 138, International Food Policy Research Institute, Washington, DC
6. Chen Xiqing, Zhang Dezhen and Zhang Erfeng (2002), The South to North Water Diversions in China: Review and Comments, Journal of Environmental Planning and Management, 45(6): 927–932
7. Becky P.Y. Loo (2004), Telecommunications reforms in China: towards an analytical Framework, Telecommunications Policy 28: 697–714
8. Hong Yanga, Xiaohe Zhang and Alexander J.B. Zehnder (2003), Water scarcity, pricing mechanism and institutional reform in northern China irrigated agriculture, Agricultural Water Management 61:143–161
12. Final Exam
Required readings:
Chow, Gregory C. (2001), China's Economic Transformation. ISBN 0-631-23330-X.
Other Resources:
Ross Garnant and Yiping Huang, (2001), Growth without Miracles: Readings on the Chinese economy in the era of reform, Oxford University Press, ISBN 0-19-924059-0
Naughton, Barry (1995), Growing out of the Plan: Chinese Economic Reform, 1978-1993. ISBN 0-521-57462-5. not so good as a text
Brief Biography of Instructor:
Brian Eyler holds a Master of Pacific International Affairs (MPIA) from UC San Diego specializing in China’s economic development and received his undergraduate degree from Bucknell University. He has studied and worked in China for nearly 10 years. Brian joined IES Abroad in 2005 as the Associate Director. His current academic research focuses on the international downstream effects of China’s economic development projects in the Mekong River basin in China’s Yunnan province.
The Contemporary Economy Of China
This course introduces students to the present-day economy of China, focusing on the reform and transitional issues. The central themes in this course are involved with popular questions such as: Why can Chinese economy grow so rapidly? Is this fast growth sustainable? What kind of the role does the government play in China’s economic transition? And what kind of challenges China faces? Answers to these questions are usually not simple. This course therefore provides a framework for students to understand and analyze economic issues in a transitional economy like China.
The course starts with a brief review of China’s economic history and basic elements of a socialist, centrally planned economy in the perspective of comparative economic systems. After analyzing various major transition issues, including the ownership reforms, the power and the limit of market forces and the necessities and difficulties in establishing market-oriented institutions. We conclude this course by summarizing transition experiences and deriving lessons from those valuable experiences.
Students are required to work on an individual or term research project. At the end of the semester, each group will submit their term paper with their research findings. Marks will be mainly based on the insights that the paper brings. It is therefore very important to develop a coherent, convincing and logically correct analytical framework in the research paper.
Introductory Microeconomics and Macroeconomics
Students are expected to attend all classes. The maximum number of emergency absences is two times. After that the student is docked one letter grade per absence. Students should arrive in the classroom in time. Being late more than 10 minutes is counted as an emergency absence.
Lecture Based
Class participation and debate 20%
Homework assignments 20%
Midterm reflection paper 30%
Final exam 30%
Students are required to produce FOUR 1-2 page notes on observations or reflections on conversations had with Chinese people about a given topic posed by the instructor. The instructor will offer six or seven topics throughout the semester based on the week’s readings. Students choose FOUR of the topics. Grading will be based on a PASS/FAIL system which assesses the quality of conversation or observation and ability to analyze the observation/conversation in context with the course’s readings. Students with lower level language skills are encouraged to observe where those with higher language skills are encouraged to converse.
Mid-Term Short Reflection Paper: It should be 3-5 pages in length, typed. It should demonstrate a student’s strength and scope in reflecting on one sub-topic covered by the part A of the course. This needs to be explained more clearly.
Final Exam: 1.5 HOUR EXAM (LAST DAY OF CLASS). CONCEPT IDENTIFICATION AND CHOICE OF TWO SHORT ESSAY QUESTIONS.
PART A (MACRO)
1. Overview of the Chinese economy
Required Weekly Reading
1. Dutta M., 2005, China’s industrial revolution: challenges for a macroeconomic agenda, Journal of Asian Economics 15, 1169-1202。
2. Allen F., J.Qian and M.Qian, 2005, Law, finance, and economic growth in China, Journal of Financial Economics 77, 57-116.
Recommended Weekly Reading
1. Boltho A., 2004, China-can rapid economic growth continue?, the Singapore Economic Review 49, 255-272.
2. Gregory Chow, 1997, Challenges of China’s economic system for economic theory, American economic review, 87, 321-327.
2. International Trade and FDI
Required Weekly Reading
1. Rodrik D., 2006, What is so special about China’s exports?, NBER working paper 11947
2. Gao T., 2005, Foreign direct investment in China: how big are the roles of culture and geography?, Pacific Economic Review 10, 153-166.
Recommended Weekly Reading
1. Peter K. Schott, 2006, The relative sophistication of Chinese exports, NBER working paper 11947.
2. Prasad E. and S.Wei, 2005, The Chinese approach to capital inflows: patterns and possible explanations, NBER working paper 11306.
3. China's banking system in transition
Required Weekly Reading
1. Alicia Garca-Herrero, Sergio Gavilay and Daniel Santabarbara, 2006, China’s Banking Reform: An Assessment of its Evolution and Possible Impact, CESifo Economic Studies, Vol. 52, 2/2006, 304–363.
2. Yoon Je Cho, 2000, The Banking System of the People’s Republic of China, working paper Soqang University, Seoul Korea.
Recommended Weekly Reading
1. Liping He, Xiaohang Fan, 2004, Foreign Banks in Post-WTO China: An Intermediate Assessment, China & World Economy, Vol. 12, iss 5, 3-16.
2. Holz, Carsten A., 2001, Economic Reforms and State Sector Bankruptcy in China, China Quarterly, v.0, iss. 166, pp. 342-67
4. Taxation/Public finance
Required Weekly Reading
1. Zeng Guoxiang, 2000, An analysis of China’s taxation system and Its future development, ATAX discussion paper Series No. 2.
2. Jin, Jing; Zou, Heng-fu,Fiscal, 2006, Decentralization, Revenue and Expenditure Assignments, and Growth in China, Journal of Asian Economics, December 2005, v. 16, iss. 6, pp. 1047-64
Recommended Weekly Reading
1. Kai-yuen Tsui, 2005, Local tax system, intergovernmental transfers and China’s local fiscal disparities, Journal of Comparative Economics 33: 173–196
2. Mun-Heng TOH and Qian LIN, 2004, the 1994 tax reform in China using a general equilibrium model, China Economic Review 16, 246– 270.
5. Labor market reform
Required Weekly Reading
1. John Giles, Albert Park and Fang Cai, 2006, How has Economic Restructuring Affected China’s Urban Workers?, The China Quarterly, 61-95
2. John GILES, Albert PARK and Juwei ZHANG, 2005, What is China’s true unemployment rate? China Economic Review 16 , 149–170
Recommended Weekly Reading
1. Xue, Jinjun and Zhong Wei, 2003, Unemployment, Poverty and Income Disparity in Urban China , Asian Economic Journal, v. 17, iss. 4, pp. 383-405
2. Wu Zhongmin, 2003, The Persistence of Regional Unemployment: Evidence from China, Applied Economics, v. 35, iss. 12, pp. 1417-21.
PART B (MICRO)
(Readings other than required are mainly for the purpose of warping up a research idea for term paper)
6. Industrial Reform
Required Weekly Reading
1. David D. Li (1996), A Theory of Ambiguous Property Rights in Transition Economies: The Case of the Chinese Non-State Sector, Journal of Comparative Economics 23, 1–19
2. Francesca Cornelli and David D. Li (1997), Large shareholders, private benefits of control and optimal scheme of privatization, RAND Journal of Economics, 28(4): 585-604
3. Theodore Groves, Yongmiao Hong, John McMillan and Barry Naughton (1995), China’s evolving managerial labor market, Journal of Political Economy, 103(4): 873-892
4. Dongwei Su (2005), Corporate finance and state enterprise reform in China, China Economic Review 16: 118– 148
5. Donald C. Clarke (2003), Corporate governance in China: An overview, China Economic Review 14: 494– 507
Recommended Weekly Reading
1. Mei Wen (2004), Bankruptcy, sale, and mergers as a route to the reform of Chinese SOEs, China Economic Review 15: 249– 267
2. Hung-Gay Fung, Donald Kummer and Jinjian Shen (2006), China’s Privatization Reforms Progress and Challenges, The Chinese Economy, vol. 39, no. 2, 5–25.
3. Shuanglin Lin and Wei Rowe (2006), Determinants of the profitability of China’s regional SOEs, China Economic Review 17:120– 141
4. Gary Jefferson, Albert G.Z. Hu, Xiaojing Guan and Xiaoyun Yu (2003), Ownership, performance, and innovation in China’s large- and medium-size industrial enterprise sector, China Economic Review 14: 89– 113
5. Wai-Ming Fong and Kevin C.K. Lam (2004), Privatization and Performance: The Experience of Firms in China, The Chinese Economy, vol. 37, no. 4, 5–27
6. Anming Zhang, Yimin Zhang and Ronald Zhao (2002), Profitability and productivity of Chinese industrial firms: Measurement and ownership implications, China Economic Review 13: 65–88
7. David D. Li (1998) Insider control and the soft budget constraint: a simple theory, Economics Letters 61: 307–311
8. Jiahua Che and Yingyi Qian (1998), Insecure property rights and government ownership of firms, Quarterly Journal of Economics, 113(2): 467-496
9. Hehui Jin and Yingyi Qian (1998), Public versus private ownership of firms: evidence from rural China, Quarterly Journal of Economics, 113(3): 773-808
10. Yingyi Qian and Gerard Roland (1996), The soft budget constraint in China, Japan and the World Economy, 8:207-223,
11. Gongmeng Chen, Michael Firth and Oliver Rui (2006), Have China’s enterprise reforms led to improved efficiency and profitability?, Emerging Markets Review 7: 82–109
12. Thomas Rawski (1994), Chinese industrial reform: accomplishments, prospects and implications, American Economic Review, 84(2) 271-275
13. Yifu Lin, Fang Cai and Zhou Li (1998), Competition, policy burdens and State-Owned Enterprise Reform, American Economic Review, 88(2): 422-427, 14. Wei Li (1997), The impact of economic reform on the performance of Chinese state enterprises, 1980-1989, Journal of Political Economy, 105(5): 1080-1106
15. Chong-En Bai, Qiao Liu, Joe Lu, Frank M. Song and Junxi Zhang (2004), Corporate governance and market valuation in China, Journal of Comparative Economics 32: 599–616
16. Chong-En Bai and Lixin Colin Xu (2005), Incentives for CEOs with multitasks: Evidence from Chinese state-owned enterprises, Journal of Comparative Economics 33: 517–539
17. Qunyan Sun, Anming Zhang and Jie Li (2005), A study of optimal state shares in mixed oligopoly: Implications for SOE reform and foreign competition, China Economic Review 16: 1– 27
18. Chun Chang, Brian P. McCall and Yijiang Wang (2003), Incentive contracting versus ownership reforms: evidence from China’s township and village enterprises, Journal of Comparative Economics 31: 414–428
19. Xiangkang Yin (2001), A dynamic analysis of overstaff in China’s state-owned enterprises, Journal of
Development Economics, 66: 87–99
20. Carsten A. Holz (2002), The impact of the liability–asset ratio on profitability in China’s industrial state-owned enterprises, China Economic Review, 13: 1–26
21. Zhigang Tao and Tian Zhu (2000), Agency and Self-Enforcing Contracts, Journal of Comparative Economics 28: 80–94
22. Xinzhu Zhang (2000), Incentives in allocation of policy loans, European Economic Review 44: 785-796
23. Chong-en Bai and Yijiang Wang (1998), Bureaucratic Control and the Soft Budget Constraint, Journal of Comparative Economics 26, 41–61
24. Jon Cauley, Richard Cornes and Todd Sandler (1999), Stakeholder incentives and reforms in China’s state-owned enterprises: A common-property theory, China Economic Review 10: 191–206
7. Regulation, Procurement and Antitrust
Required Weekly Reading
1. Jean-Jacques Laffont and Yingyi Qian (1999), The dynamics of reform and development in China: A political economy perspective, European Economic Review 43:1105-1114
2. Alwyn Young (2000), The razor’s edge: distortions and incremental reform in the People’s Republic of China, Quarterly Journal of Economics, 115(4): 1091-1135
3. Yingyi Qian and Gerard Roland (1998), Federalism and the soft budge constraint, American Economic Review, 88(5): 1143-1162
4. Lawrence Lau, Yingyi Qian and Gerard Roland (2000), Reform without losers: an interpretation of China’s dual-track approach to transition, Journal of Political Economy, 108(1): 120-143
Recommended Weekly Reading
1. David D. Li (1998), Changing incentives of the Chinese bureaucracy, American Economic Review 88(2): 393–397
2. Hehui Jin, Yingyi Qian and Barry R. Weingast (2005), Regional decentralization and fiscal incentives: Federalism, Chinese style, Journal of Public Economics 89: 1719–1742
3. David Da-hua Yang (2005), Corruption by monopoly: Bribery in Chinese enterprise licensing as a repeated bargaining game, China Economic Review 16: 171–188
4. Jie Li, Larry D. Qiu and Sun, Qunyan (2003), Interregional protection: Implications of fiscal decentralization and trade liberalization, China Economic Review 14: 227– 245
5. Belton M. Fleisher and Dennis T. Yang (2003), Labor laws and regulations in China, China Economic Review 14: 426– 433
6. Jijian Yang (2002), Market Power in China: Manifestations, Effects and Legislation, Review of Industrial Organization 21: 167–183
7. Yasheng Huang (2003), One country, two systems: Foreign-invested enterprises and domestic firms in China, China Economic Review 14: 404– 416
8. Daniel C.K. Chow (2003), Organized crime, local protectionism, and the trade in counterfeit goods in China, China Economic Review 14: 473– 484
9. Liangchun Yua, Sanford Berg and Qing Guo(2004), Market performance of Chinese telecommunications: new regulatory policies, Telecommunications Policy 28: 715–732
8. Energy and Environment
Required Weekly Reading
1. Paul Crompton and Yanrui Wu (2005), Energy consumption in China: past trends and future directions, Energy Economics 27: 195– 208
2. Hua Wang and David Wheeler (2005), Financial incentives and endogenous enforcement in China’s pollution levy system, Journal of Environmental Economics and Management 49: 174–196
Recommended Weekly Reading
1. Paul A. Steenhof (2006), Decomposition of electricity demand in China's industrial sector, Energy Economics 28: 370–384
2. Karen Fisher-Vanden (2003), The effects of market reforms on structural change: implications for energy use and carbon emissions in China, The Energy Journal, 24(3): 27-62
3. ZhongXiang Zhang (2003), Why did the energy intensity fall in China’s industrial sector in the 1990s? The relative importance of structural change and intensity change, Energy Economics 25: 625–638
4. Karen Fisher-Vanden, Gary H. Jefferson, Hongmei Liu and Quan Tao (2004), What is driving China’s decline in energy intensity? Resource and Energy Economics 26: 77–97
5. Hua Wang (2002), Pollution regulation and abatement efforts: evidence from China, Ecological Economics 41: 85–94
6. Maximilian Auffhammer, Richard T. Carson and Teresa Garin-Munoz (2004), Forecasting China’s Carbon Dioxide Emissions: A Provincial Approach, Working paper, University of California, Berkeley
7. Chaoyang Peng, Xiaodong Wu, Gordon Liu, Todd Johnson, Jitendra Shah and Sarath Guttikunda (2002), Urban Air Quality and Health in China, Urban Studies, 39(12): 2283–2299,
8. Judith M. Dean (2002), Does trade liberalization harm the environment? A new test, Canadian Journal of Economics, 35(4): 819-942
9. Victor Brajer and Robert W. Mead (2004), Valuing Air Pollution Mortality in China’s Cities, Urban Studies, 41(8): 1567–1585,
10. Jie He (2005), Estimating the economic cost of China’s new desulfur policy during her gradual accession to WTO: The case of industrial SO2 emission, China Economic Review 16: 364– 402
11. Fahua Zhu, Youfei Zheng, Xulin Guo and Sheng Wang (2005), Environmental impacts and benefits of regional power grid interconnections for China, Energy Policy 33: 1797–1805
12. ZhongXiang Zhang (2003), Why did the energy intensity fall in China’s industrial sector in the 1990s? The relative importance of structural change and intensity change, Energy Economics 25: 625–638
9. Health care and Inequality
Required Weekly Reading
1. Keyong Dong and Xiangfeng YE (2003), Social security system reform in China, China Economic Review 14: 417– 425
2. H. Naci Mocan, E. Tekin and J. Zax (2004), The Demand for Medical Care in Urban China, World Development 32(2): 289–304
Recommended Weekly Reading
1. Linxiu Zhang, Alan De Brauw and Scott Rozelle (2004), China’s rural labor market development and its gender implications, China Economic Review 15: 230– 247
2. Guanghua Wan (2005), Convergence in food consumption in Rural China: Evidence from household survey data, China Economic Review 16: 90– 102
3. John A. Bishop, Feijun Luo and Fang Wang (2005), Economic transition, gender bias, and the distribution of earnings in China, Economics of Transition, 13 (2): 239–259
4. Bjorn Gustafsson and Li, Shi (2004), Expenditures on education and health care and poverty in rural China, China Economic Review 15: 292– 301,
5. Shujie Yao, Zongyi Zhang and Lucia Hanmer (2004), Growing inequality and poverty in China, China Economic Review 15: 145– 163,
6. Derek C. Jones, Cheng Li and Ann L. Owen (2003), Growth and regional inequality in China during the reform era, China Economic Review 14: 186–200
7. Hiroshi Sato (2006), Housing inequality and housing poverty in urban China in the late 1990s, China Economic Review 17: 37– 50,
8. Thomas Hertel and Fan Zhai (2006), Labor market distortions, rural–urban inequality and the opening of China’s economy, Economic Modelling 23: 76– 109
9. Lin, Zhifen (2004), Regional Disparities in Social Security in China and Transfer Payments, The Chinese Economy, vol. 37, no. 5: 59–73
10. Ding Lu (2002), Rural–urban income disparity: impact of growth, allocative efficiency, and local growth welfare, China Economic Review 13: 419–429
11. Xiaobo Zhang and Ravi Kanbur (2004), Spatial inequality in education and health care in China, China Economic Review 16: 189–204
10. Site Visit
11. Infrastructure: telecom, power, transportation, water, postal service etc.
Required Weekly Reading
1. Jean-Jacques Laffont (2004), Management of Public Utilities in China, Annals of Economics and Finance, 5, 185-210
Recommended Weekly Reading
2. Shenggen FAN and Xiaobo ZHANG (2004), Infrastructure and regional economic development in rural China, China Economic Review 15: 203– 214
3. Qingyang Gu and Kang Chen (2005), A multiregional model of China and its application, Economic Modelling 22: 1020– 1063
4. Liangchun Yua, Sanford Berg and Qing Guo (2004), Market performance of Chinese telecommunications: new regulatory policies, Telecommunications Policy 28: 715–732
5. Shenggen Fan and Connie Chan-Kang (2005), Road Development, Economic Growth, and Poverty Reduction in China, Research Report 138, International Food Policy Research Institute, Washington, DC
6. Chen Xiqing, Zhang Dezhen and Zhang Erfeng (2002), The South to North Water Diversions in China: Review and Comments, Journal of Environmental Planning and Management, 45(6): 927–932
7. Becky P.Y. Loo (2004), Telecommunications reforms in China: towards an analytical Framework, Telecommunications Policy 28: 697–714
8. Hong Yanga, Xiaohe Zhang and Alexander J.B. Zehnder (2003), Water scarcity, pricing mechanism and institutional reform in northern China irrigated agriculture, Agricultural Water Management 61:143–161
12. Final Exam
Chow, Gregory C. (2001), China's Economic Transformation. ISBN 0-631-23330-X.
Ross Garnant and Yiping Huang, (2001), Growth without Miracles: Readings on the Chinese economy in the era of reform, Oxford University Press, ISBN 0-19-924059-0
Naughton, Barry (1995), Growing out of the Plan: Chinese Economic Reform, 1978-1993. ISBN 0-521-57462-5. not so good as a text
Brian Eyler holds a Master of Pacific International Affairs (MPIA) from UC San Diego specializing in China’s economic development and received his undergraduate degree from Bucknell University. He has studied and worked in China for nearly 10 years. Brian joined IES Abroad in 2005 as the Associate Director. His current academic research focuses on the international downstream effects of China’s economic development projects in the Mekong River basin in China’s Yunnan province.