Book Reviews

Abstract

Belton M. Fleisher of Ohio State University, Central University of Finance and Economics, and IZA reviews, “Demystifying the Chinese Economy “ by Justin Yifu Lin. The Econlit abstract of this book begins: “Originally published in Chinese in 2009. Updated English-language edition explores China's economic development and transition over the past few centuries and considers the reforms necessary for China to complete the transition to a well-functioning market economy. Discusses opportunities and challenges in China's economic development; why the Scientific and Industrial Revolutions bypassed China; the great humiliation and the Socialist Revolution; the comparative advantage-defying, catching-up strategy and the traditional economic system; enterprise viability and factor endowments; the comparative-advantage-following development strategy; rural reform and the three rural issues; urban reform and the remaining issues; reforming the state-owned enterprises; the financial reforms; deflationary expansion and building a new socialist countryside; improving the market system and promoting fairness and efficiency for harmonious development; and reflections on neoclassical theories. Lin is Senior Vice President and Chief Economist of the World Bank.”