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新结构经济学工作论文WorkingPaperSeriesofNewStructural.PDF
新结构经济学工作论文
Working Paper Series of New Structural Economics
No.E2018008 2018-8-14
1
China’s Growth Miracle in the context of Asian Transformation
Justin Lin Yifu2
Abstract
Myrdal did not cover China in his Asian Drama. If he did, he would have been most likely pessimistic
about China as about other Asian countries in his book. However, China has achieved a miraculous
growth since the transition from a planned economy to a market economy at the end 1978. This paper
provides answers to the questions: Why was China trapped in poverty before 1978? Why was it
possible for China to achieve an extraordinary performance during its transition? Why did most other
transition economies failed to achieve a similar performance? What prices did China pay for its
success? Can China continue the dynamic growth in the coming decades? What lessons can we draw
from China‘s development experiences in view of the Asian Drama . The paper concludes with a
positive note: If a developing country adopts a pragmatic approach to develop its economy along its
comparative advantages in a market economy and tap into the potential of latecomer advantages with a
facilitating state, the country can grow dynamically like China.
Keywords: Development, Transition, Role of state, Chinese economy, Rethinking of economics
JEL codes: N15, O10, P11
1This paper is prepared for a UNU-WIDER project commemorating the fiftieth anniversary of Gunnar Myrdal‘s Asian Drama.
2Justin Yifu Lin, Institute of New Structural Economics, Peking University, Beijing, 1008
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