Study of Price Reform in China, 1978-1994

1994 Fiscal Year Final Research Report Summary

• Project/Area Number: 05630010
• Research Category: Grant-in-Aid for General Scientific Research (C)
• Allocation Type: Single-year Grants
• Research Field: 経済理論
• Research Institution: Nagasaki University (1994); Ritsumeikan University (1993)
• Principal Investigator: IDE Keiji Nagasaki Univ.Dept.of Economics Professor, 経済学部, 教授 (50066718)
• Project Period (FY): 1993 – 1994
• Keywords: Price Reform in China / Four stages of Price Reform / Price Liberalisation and Adjustment / Socialist Market Economy / Price Subsidies / Subsidy for Enterprise Deficit / Dual Pricing System

Research Abstract

Present study is focusting on Chinese price reform in 1979-1994. Main analytical achievements of my study are as follows :
1) Chinese price reform proceeded so far in step by step method. We can distinguish four stages of price reform. The first stage (1979-1984) was characterised by adjustment, the second stage (1984-1988) was characterised by liberalisation parallel with adjustment, the third stage (1989-1991) was characterised by temporary stagnation of liberalisation, the fourth stage (1992- ) was characterised by liberalisation and enlargement of the scale which mean liberalisation applied to labor market, housing market and social insurance.
2) Under the conditions of Chinese reforming ecnomy, liberalisation of prices of goods per se does not mean introduction of free market allocation of resources (market mechanism). Many factors of production like labor, land, capital, technique are still under strict state control. Introducing market mechanism to these fields is future main task for accomplishment of marketisation.
3) Since 1992, the goal of price reform have been determined total liberalisation of prices including labor, capital, housing, public service etc. Obstacles for these reforms are so huge. It may be needed so many years, we should carefully observe policy measures in coming years.