The effects of China's transition from a planned economy to a market economy essay
This essay examines China's transition from plan to market, focusing on the pre-Xi era, especially the early reforms. It also carefully examines the. As China has transformed itself from a centrally planned economy to a market economy, economists have sought to understand and interpret its success. The proponents of the big bang approach expected the transition in the EEFSU to have a J-curve. effect on economic growth, that is, they expected GDP in a country that had implemented the Big Bang. Therefore, the transition to a market economy undertaken by the Communist Party in China and Vietnam could be of empirical interest. However, in the case of China, the situation has improved because the literature contains studies that indicate the parallel routes of economic growth and military growth. editions Chen, 2009 Chen amp Feffer, 2009. Main differences. In a planned economy, the government makes all decisions about what goods and services are produced, how they are produced, and who gets them. This central planning strives for a fair distribution and efficient use of resources. A market economy, on the other hand, is based on the principles of the free market, where China's economic transition, with the aim of creating a basic economic system for the first phase of socialism, is aimed at building a socialist market economy. Because China has not yet achieved a mature market economy since breaking away from the planned economy, the resulting economic transition period is characterized by the fact that China's transition from a planned economy to a market economy has managed to produce more than a decade of phenomenal growth. While similar reforms in the countries of Central and Eastern Europe and the former Soviet Union have seen an initial decline in output, usually with a significant increase in unemployment, the success of the Cultural Revolution had an enormous impact on the economic , social and economic development of China. Political life China's leaders realized that the voluntaristic principle led to economic disruption, and as a result, a new economic model was needed that could solve the serious problems of a population that was already more than one year old.,