Index Page references to Figures or aggregate output air pollution, 179 Tables will be in italics data on, 93 regulation, 189–91 acceleration principle, 125, 143 human capital, 209 Almanac of China’s Economy, economic fluctuations, macroeconomic analysis, 30, 37, 39 112–13, 114, 115, 143, 144 population, 198, 199 117, 118 monetary policy, 121, 126 AMCs see asset management accumulation, 93, 96, 116, multiplier-accelerator companies 143, 161 model, 110, 111 (AMCs) adaptive expectations neoclassical growth model, American International Group hypothesis, 117 91, 92 (AIG), 247 administration planning, 380 Anderson, T. W., 391 county administration, 39, see also output Ando, Albert, 391 67, 84 agricultural areas see rural Andreoni, James, 189 of economic planning, 37–40 areas Anhui Provincial Women’s Administrative Council, Agricultural Bank of China, Association, 200 Financial and 38, 50, 234 Annals of Mr. Liang Yansun Economic Agricultural Development of Sanshui, The Commission, 33 Bank, 69, 242 (1939), 10, 289, aggregate demand, 72, 237, agriculture 367, 375 317, 422 economic reform, 45–6, Asian financial crisis, 104, economic fluctuations, 110, 53–4, 81–2 374, 421 111, 112 incentives, 45, 54 economic reform, 68, education system and in planned economy, 70–1, 85 policy, 401, 402 26, 28 foreign trade and macroeconomic analysis,COPYRIGHTED responsibility system, MATERIALinvestment, 72–4 126, 130, 131, 132, 355–6 macroeconomic analysis, 139, 140 see also farming 131, 139 China’s Economic Transformation, Third Edition. Gregory C. Chow. © 2015 John Wiley & Sons, Ltd. Published 2015 by John Wiley & Sons, Ltd. 0002253572.indd 425 12/3/2014 4:03:27 AM 426 Index asset management, 347–65 inflation, 237, 238 British Empire, 9–10 assets for own use, 353 insurance companies, 248–9 Brzybyla, Heidi, 76 assets for use by others, 353–5 monetary policy, 236, Buck, John L., 11–12, 101 hypothesis, 349 238, 239 budgets/budget constraints, laws of, 349–51 possible reform, 241–3 137, 189, 205, 206, managing one’s own person, possible weaknesses of 212, 244 352–3 system, 240–1, 360 macroeconomic analysis, nonhuman assets, 347 reform, 49–50, 68–72, 85 145, 146 nonmarket trading of specialized banks, 233–4 and planning, 29, 30, 35 services and stock markets, 245–8 soft budget restraints, goods, 355 training of banking 275, 289 physical assets, 219, 353–5 personnel, 234, bureaucracy/bureaucrats, 55, poor quality of delivery, 235, 242 235, 245, 279, 420 354–5 transparency requirement, 85 asset management and poor quality services, 353–4 trust and investment corruption, 351, 354, rent seeking, 351, 354 corporations, 245 355, 358, 359, 361, 362 responsibility system, under, Banking Regulatory behavior, 240, 295–6, 355–8 Commission, 360 348, 360 supply of services, 350–1 Bankruptcy Law (1986), 372 and economic reform, 69, welfare effects of barefoot doctors, 225, 226 79, 80, 84, 86 restrictions on use, 351 Barsky, Robert, 256 foreign investment, 335, 338 asset management companies Becker, Gary S., 205, 206, government, 47, 282, 289, (AMCs), 71, 243 210, 213, 219, 222 298, 338, 381, 407, asset misuse, 349, 351, 362, behavior 409–10, 418 363, 364, 407, 413 bureaucratic, 240, 295–6, legal system, 380, 381, 382 collectively-owned land, 358–9 348, 360 nonstate sectors, 289, 295, see also corruption consumer, 30 296, 297, 298 astronomy, 8 economic, 15, 29–32 rent seeking by automobile industry, 55, 164, of farmers, 30–1, 419 bureaucrats, 354 179, 293, 348, 373 of state enterprises, 265–85 bureaucratic market economy, and economic reform, 74, stock prices, 254 86, 289, 296, 334, 423 75, 76, 80 see also bureaucracy/ Butterfield, Fox, 348 foreign investment, 340, 341 bureaucrats; corruption foreign trade, 307, 308, 320, Beijing Olympics (2008), 80 Campbell, John, 256, 257 321, 323 Binglin Zhong, 389 capital, data on, 93–4, 95–6, 97 autonomous regions, 39, 61 birth rates, 197, 198, 201–2, capital flows, 328 203, 204 capital goods, in planned bad debts, 71 economic explanation, 205–7 economy, 26, 27 Baldwin, R. E., 321 Book of Changes (Yiching), 5 capital stock, 25, 209, 214, Bank of China, 12, 234, 289 Book of Li (etiquette), 5 277, 279 Bank of Communications, 12 Book of Poems, 5 economic fluctuations, 111, banking and financial sector, brain drain, 221 112, 113, 118 233–52 Brazil, 70, 186 economic growth, 92, 94, commercial banks see bribery, 58, 354, 407 96, 97, 98, 99, 104, commercial banks see also corruption 105, 106 factors affecting functioning brigades, commune system, macroeconomic analysis, of banking system, 30, 31 143, 144, 146, 237–9 Britain, 328, 368, 386, 415 147, 153 0002253572.indd 426 12/3/2014 4:03:27 AM Index 427 capitalism China Report: Social and on macroeconomic policies, banned activities, in Economic 127, 134, 136, 143, Cultural Revolution, 46 Development 144, 146, 149, 150, capitalist economy versus 1949–1989, 97 157 socialist economy, 347 China Statistical Yearbook on Shanghai Stock Market, “crony capitalism,” 70–1 banking and financial 254, 256, 257, and imperialism, 21 sector, 246, 248 260, 263 in Song dynasty, 8, 15 consumption, 162, 163, Chungking (Chongqing), carbon dioxide emission, 178, 164, 175 wartime capital, 11, 179, 181, 184, 191 economic growth, 94, 97 14, 386 central bank see People’s education system and city governments, 203 Bank policy, 399 civil war, 14 Central Committee of Chinese foreign investment, 329, civilization, Chinese, 5 Communist Party, 173, 331, 341 classical works, Chinese, 5, 8 199, 234, 249, 253, 295, foreign trade, 301, 303 Cleaner Production Promotion 296, 356, 368, 369 human capital, 227 Law (2002), 182 and economic reform, 45, macroeconomic climate change, 184 47, 48, 50, 53, 78, 87 analysis, 128 clothing consumption, 49, 77, and planning economy of nonstate sectors, 287 145, 161, 165, 167, China, 24, 34 population, 196 168, 171, 173 centrally planned economy see state-owned enterprises, 283 Coale, Ansley, 202 planned economy/ Chinese Academy of Social Cobb–Douglas production centrally planned Sciences, 266, 392, function, 54, 195, 278, economy 394, 397 291, 304 Chairman Mao see Mao Chinese Association of aggregate, 210, 229 Zedong Science and and economic growth, 92, Chang, Gene Hsin, 23 Technology, 422 94, 99–100, 101, characters, Chinese language, 5 Chinese Communist Party see 106, 108 Che, Jiahua, 408 Communist Party of human capital, 209, 210, chemical oxygen demand China 214, 229 (COD), 187, 188 Chinese Economists macroeconomic analysis, Chen, Guidi, 84 Society, 396 143, 144, 150 Cheng, C. Y., 265, 266 Chinese People’s co-integration relation, 134 Chiang Kai-shek, 11, 14, 15, Congress, 46 collective enterprises, 47, 21, 53 Chinese State Statistics 51, 53, 54, 67, 286, China: 2020 (World Bank), 107 Bureau, 93 287, 291, 316, 357, China: Alive in a Bitter Sea Chow, Gregory C., 24, 54, 56, 372, 419 (Butterfield), 348 83, 165, 167, 175, 188, collective welfare, 413–15 China Banking Regulatory 223, 227, 279, 348, collectively-owned land, Commission, 236 356, 359 misuse, 358–9 China International Trust and on economic fluctuations, collectivism, 45, 414 Investment Corporation 113, 115, 116, 118, colleges see universities and (CITIC), 245 119, 120, 121 colleges China National Offshore Oil on economic growth, 93, command economy see Corporation 94, 96, 97, planned economy (CNOOC), 323 99–100, 101 Commercial Bank Law China Population Statistics on education, 387, 389, 391, (1995), 69, 248, Yearbook, 201 392, 393, 399, 401 370, 372 0002253572.indd 427 12/3/2014 4:03:27 AM 428 Index commercial banks, 233–5, 360 consumer demand theory, and legal system, 367, 377, and Chinese history, 12, 13 145, 213 380, 380–1, 381 and economic reform, 71–2, consumer goods, 26, 27, 28, lessons from studying 241–2 29, 35, 39 Chinese economy, macroeconomic analysis, 132 consumer price index, 314 407, 422 weaknesses, 243–4 consumers, needs of, 25, 30 measuring, 339 Commission for Restructuring consumption, 161–77 nonstate sectors, 290, 295, the Economic System, energy, 180 296, 298, 299 46, 49, 56, 130, 312, 378 fuel, 183, 184 Council of Economic consumption, 173, 174 household expenditure Advisers, US, 126 Committee on Energy Futures patterns, 165–71, county administration, 39, 67, 84 and Air Pollution in 169–70 credit, 68, 126, 186 Urban China, 179 housing, in rural and urban banking and financial commune system areas, 173–5 sector, 233, 234, 237, abolition, 356 oil, 180–1 241, 242, 243, 244 collapse, 226 rural areas, 166, 172, 173–5 and economic reform, 50, 55 historical background, 23 rural per capita patterns in expanding/extending, 69, planned economy, 26, 30–1 1998, by province, 130, 131, 132, 133, reform, 45 171, 172, 173 234, 237, 313 weak teams, 355–6 trends in per capita nonstate sectors, 288, 289 Communism, 369 consumption, 161–4 supply, 182, 183 Communist Party of China, 24, consumption function credit quotas, 69, 130, 131, 34, 40, 47, 48, 50, 371 aggregate, 119 132, 237, 239, 242 Deng Xiaoping, assumption economic fluctuations, 112, “crony capitalism,” 70–1 of leadership (1978), 114, 116, 117, 119, 120 cross-section analysis, 165, 167 24, 43 of Friedman, 112 Cultural Revolution (1966–76) and economic reform, 78, 79 Keynesian, 112, 126 and corruption, 362 foreign investment, 326, contract responsibility system, economic fluctuations, 119 328–9 44, 48, 241, 263, 280, economic growth, 94 one-party system under, 357, 358, 361, 363 and economic reform, 43–4, 415–17 Cooperative Medical System 46, 52, 55 rise to power, 20–1, 40 (CMS), 226, 228 effects, 25, 155, 155–7 see also Central Committee cooperatives and “four