How the Chinese Economy Works: A Multiregional Overview

220 Pages·1999·10.732 MB·English

by  Rongxing Guo (auth.)

HOW THE CHINESE ECONOMY WORKS
STUDIES ON THE CHINESE ECONOMY
General Editors: Peter Nolan, Sinyi Professor of Chinese Management,
Judge Institute of Management Studies, University of Cambridge, and
Fellow of Jesus College, Cambridge, England; and Dong Fureng, Professor,
Chinese Academy of Social Sciences, Beijing, China
This series analyses issues in China's current economic development, and
sheds light upon that process by examining China's economic history. It
contains a wide range of books on the Chinese economy past and present,
and includes not only studies written by leading Western authorities, but also
translations of the most important works on the Chinese economy produced
within China. It intends to make a major contribution towards understanding
this immensely important part of the world economy.
Published titles include:
BozhongLi
AGRICULTURAL DEVELOPMENT IN JIANGNAN, 1620-1850
Alfred H. Y. Lin
THE RURAL ECONOMY OF GUANGDONG, 1870-1937
Nicholas K. Menzies
FOREST AND LAND MANAGEMENT IN IMPERIAL CHINA SINCE
THE SEVENTEENTH CENTURY
Ryoshin Minami
THE ECONOMIC DEVELOPMENT OF CHINA
Peter Nolan
STATE AND MARKET IN THE CHINESE ECONOMY
Yuming Sheng
INTERSECTORAL RESOURCE FLOWS AND CHINA'S ECONOMIC
DEVELOPMENT
Hong Wang
CHINA'S EXPORTS SINCE 1979
Wang Xiao-qiang
CHINA'S PRICE AND ENTERPRISE REFORM
Shangquan Gao
CHINA'S ECONOMIC REFORM
XiaopingXu
CHINA'S FINANCIAL SYSTEM UNDER TRANSITION
Malcolm Warner
THE MANAGEMENT OF HUMAN RESOURCES IN CHINESE
INDUSTRY
Tim Wright (editor)
THE CHINESE ECONOMY IN THE EARLY TWENTIETH CENTURY
Yanrui Wu
PRODUCTIVE PERFORMANCE OF CHINESE ENTERPRISES
Haiqun Yang
BANKING AND FINANCIAL CONTROL IN REFORMING PLANNED
ECONOMIES
Shujie Yao
AGRICULTURAL REFORMS AND GRAIN PRODUCTION IN CHINA
Xun-Hai Zhang
ENTERPRISE REFORMS IN A CENTRALLY PLANNED ECONOMY
Ng Sek Hong and Malcolm Warner
CHINA'S TRADE UNIONS AND MANAGEMENT
Studies on the Chinese Economy
Series Standing Order ISBN 978-0-333-71502-4
(outside North America only)
You can receive future titles in this series as they are published by placing a standing order.
Please contact your bookseller or, in case of difficulty, write to us at the address below with
your name and address, the title of the series and the ISBN quoted above.
Customer Services Department, Macmillan Distribution Ltd
Houndmills, Basingstoke, Hampshire RG21 6XS, England
How the Chinese
Economy Works
A Multiregional Overview
Rongxing Guo
First published in Great Britain 1999 by
MACMILLAN PRESS LTD
Houndrnills, Basingstoke, Hampshire RG21 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
ISBN 978-1-349-27120-7 ISBN 978-1-349-27118-4 (eBook)
DOI 10.1007/978-1-349-27118-4
First published in the United States of America 1999 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
ISBN 978-0-312-21570-5
Library of Congress Cataloging-in-Publication Data
Guo, Rongxing.
How the Chinese economy works : a multiregional overview I
Rongxing Guo.
p. em.
Includes bibliographical references and index.
ISBN 978-0-312-21570-5 (cloth)
1. China-Economic conditions. 2. China-Economic policy-1976-
1. Title.
HC427.92.G86 1998
330.951-DC21 98-17296
CIP
© Rongxing Guo 1999
Softcover reprint of the hardcover 1st edition 1999 978-0-333-72993-9
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission.
No paragraph of this publication may be reproduced, copied or transmitted save with
written permission or in accordance with the provisions of the Copyright, Designs and
Patents Act 1988, or under the terms of any licence permitting limited copying issued by
the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE.
Any person who does any unauthorised act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.
The author has asserted his right to be identified as the author of this work in accordance
with the Copyright, Designs and Patents Act 1988.
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources.
10 9 8 7 6 5 4 3 2
08 07 06 05 04 03 02 01 ()()
Contents
List of Tables ix
List of Figures xii
Preface xiii
Abbreviations xv
Notes from the Author xvi
Introduction 1
1 The Spatial Division of the Chinese Economy 10
1.1 Administrative Divisions 10
1.2 Great Regions 11
1.3 Coastal and Inland Areas 16
1.4 Eastern, Central and Western Belts 16
1.5 Southern and Northern Parts 17
Box 1 How Many Administrative Divisions Should
There Be in China? 18
2 China's Economic Resource Base 19
2.1 Natural resources 19
2.2 Population and Labour Force 26
2.3 Education 32
2.4 Policy Implications 37
Box 2 Mingong Economics 38
3 The Economic Systems in Transition 40
3.1 General Background 40
3.2 Planning 43
3.3 Labour 46
3.4 Production Management 48
3.5 Public Finance 55
3.6 Investment 61
3.7 Summary 62
Box 3 Double-Track Economics 63
vii
viii Contents
4 A Multiregional Economic Comparison 65
4.1 About the Statistical Data 65
4.2 Macroeconomic Indicators 70
4.3 Real Living Standards 78
4.4 Regional Inequalities 86
4.5 Concluding Remarks 89
Box 4 Delta Economics 91
5 Industrialization and Technological Progress 93
5.1 China's Efforts on Industrialization 93
5.2 Post-Reform Industrialization 98
5.3 A Multiregional Analysis 104
5.4 Rural Industrialization 107
5.5 Technological Progress 108
Box 5 Green Economics 111
6 Can the Chinese Economy Be Spatially Optimized? 112
6.1 Spatial Separation in China 112
6.2 A Mathematical Description 117
6.3 China's Search for Economic Integration 125
Box 6 Border-Regional Economics 128
7 China's Economic Internationalization 129
7.1 Historical Review 129
7.2 Foreign Trade 132
7.3 Foreign Investment 140
7.4 Chinese Economic Liberalization 142
Box 7 How to Apply for Going Abroad? 145
8 An Economic Analysis of the Greater China Area 146
8.1 Historical Evolution 146
8.2 An Economic Comparison of Taiwan, Hong Kong,
Macau and Mainland China 149
8.3 Cross-Taiwan Strait Economic Relations 154
8.4 Future Perspective 163
Box 8 Overseas Chinese Economics 164
Notes 166
References 182
Index 197
List of Tables
1.1 China's production position in the world,
selected years, 1980-95 2
1.1 The political and social conditions for the FCADs,
end of 1995 12
1.2 The six great regions 15
1.3 The coastal and inland areas and eastern, central,
and western belts 17
1.4 The northern and southern parts 18
2.1 Major metal reserves of China and the world 20
2.2 The regional distribution of major mineral resources 21
2.3 A comparison of monetary values of minerals
between FCADs 22
2.4 Energy resources by great region 23
2.5 The regional distribution of agricultural products 24
2.6 Population forecasts for selected countries 27
2.7 School-aged children enrolled and graduates of
primary and junior middle schools entering higher
schools, selected years from 1952-95 34
2.8 Mean value of education in years by FCAD 36
3.1 Share of marketized agricultural products by FCAD,
1988 and 1994 47
3.2 Shares of different ownership enterprises in GVIO
by FCAD, 1978 and 1995 54
3.3 Changes of the central-local fiscal relations, 1980-93 57
3.4 Definition and formulation of the fiscal policies 58
3.5 Shares of central and local revenue and expenditure,
1971-95 60
3.6 Regional distribution of capital investment between
coastal and inland areas, 1953-90 61
4.1 The main sources for China's statistical data 66
4.2 Different estimates of China's per capita GDP 71
4.3 Estimated and officially reported GNPs at current
prices, 1952-95 74
4.4 Per capita GDP by FCAD, 1952, 1979, 1990 and 1995 77
4.5 Growth rates of per capita personal consumption in
eight FYPs 79
ix
x List of Tables
4.6 Per capita personal consumption, 1952-95 79
4.7 A comparison of selected consumer durables per 100
households between China, Japan, the UK and Russia 80
4.8 Per capita income by rural and urban area, 1957-95 82
4.9 Indicators of economic lives by rural and urban areas,
1978 and 1995 83
4.10 Rural and urban differences of living standards by
FCAD,1995 85
4.11 Per capita GDPs of the Eastern, Central and Western
belts, 1978-95 90
5.1 Major economic indicators, 1950-78 94
5.2 Industrial outputs of the third-front area as
percentage of China, 1952, 1965, and 1978 97
5.3 (a) Industrial structure under the MPS, selected years,
1952-80 100
5.3 (b) Industrial structure under the SNA, selected years,
1978-95 100
5.4 Indicators of industrial enterprises under independent
accounting system by light and heavy industry,
1988 and 1995 102
5.5 China's industrialization at different values of
per capita NI, with an international comparison 103
5.6 Major industrial indicators of the Eastern, Central,
and Western belts, 1994 105
5.7 The elasticities of K and L on industrial production 107
5.8 A comparison of industrial production between
China and the advanced nations 110
6.1 Qij = (xij/r.J=rij)/(r.1~lXij/LJ=1r.~~lXij) 115
6.2 Maximized outputs under two different spatial systems 124
6.3 Average per capita NI by type of border-region,
42 counties 128
7.1 The boundary conditions for the Chinese economy 131
7.2 China's foreign trade with major countries (regions),
1995 134
7.3 An interregional comparison of foreign trade, 1995 139
7.4 Utilization of foreign capital in China, 1979-95 141
8.1 Major economic indicators of Taiwan, Hong Kong,
Macau and mainland China, 1994 150
8.2 Major social indicators of Taiwan, Hong Kong,
Macau and mainland China, 1994 151