Abstract

While China's official data reported positive economic growth during the Cultural Revolution period, numerous reports and documents consistently indicated deterioration in living conditions for the same period. This study applies the theory of immiserizing growth in a command economy to explain the paradox. By using a proxy for the market price at the end of the period and using a survey sample to reveal residents' preference, we conduct an empirical test and conclude that the Cultural Revolution period is indeed an immiserizing growth case.

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