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Full-Text Articles in Social and Behavioral Sciences

Pre-Commitment Vs. Flexibility : Uncertainty And Distribution Reform In P.R. China, Kong Wing, Clement Chow Dec 1996

Pre-Commitment Vs. Flexibility : Uncertainty And Distribution Reform In P.R. China, Kong Wing, Clement Chow

Hong Kong Institute of Business Studies Working Paper Series

The Chinese economic reform is remarkably different from the East European reforms in which the Chinese model emphasizes competition over privatization. This paper explains why the Chinese distribution reform is successful, although the Chinese government has made no attempt in privatizing her inefficient state-owned enterprises. By extending Coughlan's (1 985) price competition model to endogenize the pre-commitment versus flexibility decision, it is shown that reducing uncertainty can encourage enterprises to pre-commit their investment which allows further development of the retail sectors. This results supports the gradual pace of distribution reform policy of China. By contrast, the 'renolutionary' East European model …


Growth Into A Market Economy : The "Incremental Approach" In China, Gang Fan Jan 1993

Growth Into A Market Economy : The "Incremental Approach" In China, Gang Fan

Centre for Public Policy Studies : CPPS Working Paper Series

No abstract provided.