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China's economic transformation demonstrates that the paths of transition and development are broader and more varied than generally predicted by economic research relating to other countries. Research focused on China's experience contributes to the scope and richness of the economics literature in notable ways. The China literature illustrates and makes more vivid established insights and paradigms, including those of Nobel laureates whose work relates to development and institutions. Furthermore, China is inspiring new insights and understanding regarding the central rote of institutions. This paper, in particular, focuses its review on the literature that expands our understanding of the process of induced institutional change. doi:10.1057/ces.2008.14 Keywords: China, transition, induced institutional change, economic development JEL Classifications: B52, P26, P3, INTRODUCTION Noteworthy innovations in the field of economics over the past three decades, particularly in the field of institutional economics, have coincided with China's transformation from a relatively minor, centrally [...]

The impact of privatization of Chinese state owned enterprises on firm performance is examined.

A data of close to 2500 of ChinaEs energy intense enterprise is studied to understand the decline of energy intensity during 1977-1999, at the beginning of the economic reforms in China. The results showed that the rise in energy prices, research and development costs, changes in the industrial structure are the real reasons for the decline in intensity and energy use in China

Foreign direct investment has played a significant role in the economic growth in mainland China. This FDI impact and spillover especially in the case of electronics and textiles industries, is summarized. The tendency of FDI to reduce the productivity and market share of the domestic firms, is analyzed.

The total factor productivity (TFP) for China's state and collective industry for the period 1980-1992 is analyzed. TFP increased in both segments during the period, confirming earlier results showing moderate TFP growth for state industry. However, a substantial decline in growth is observed during 1988-1992, especially in the state sector. Three possible sources of the slump are the business cycle, selectivity bias and structural issues.

This paper investigates the degree to which socialist enterprises in transition mimic the behavior of the canonical neoclassical firm. Using enterprise survey data, we find evidence that Chinese factory managers economize on factor inputs in response to increases in managerial autonomy and market orientation. In addition, we find evidence of increasing allocative efficiency as measured by patters of factor return equalization and rapid capacity growth among the most profitable enterprises and that some combination of regulation and market discipline is causing price and wage-setting behavior to be more efficient than most analysts have anticipated. J. Comp. Econom., March 1991, 15(1), pp. 45-64. Brandeis University, Waltham, Massachusetts 02254; and School of Economics, Wuhan University, Wuchang, China.