Economic Reforms Research Articles

Causes and Consequences of Minimum Wage Variation in China

This paper examines the effects of minimum wage policies on employment and income inequality in China. It is focusing on the interplay with foreign direct investment (FDI) and regional economic disparities. Since 1978, China’s economic reforms have led to significant growth and rising wages. Yet exacerbated income inequality. The study finds that FDI raises wages. It is particularly for skilled labor, while regional variations in minimum wage standards reflect economic activity differences between coastal and inland provinces. Higher minimum wages have mixed employment effects. It is negatively impacting prosperous Eastern regions while benefiting Central and Western regions. Additionally, higher wages spur productivity improvements and innovation among firms. Policy recommendations include developing region-specific wage policies. It enhances protections for migrant workers, encouraging investment in productivity-enhancing technologies. It promotes balanced economic development and strengthens labor regulation enforcement. These measures aim to balance wage growth with employment stability. Hence, this analysis promotes equitable economic development across China.

A Fundamental and Technical Analysis of the US and Chinese Stock Markets

This paper provides a comprehensive comparison between the stock markets of the United States and China, the two largest economies globally. The study examines key aspects such as market mechanisms, investor strategies, and market efficiencies. The U.S. stock market, characterized by its large market capitalization and robust growth, operates through dealer and auction market mechanisms with a strong regulatory framework and high openness to foreign investors. In contrast, the Chinese stock market, having developed more recently, primarily uses auction market mechanisms and imposes daily price limits to manage volatility. Historical developments show the U.S. market's long history of financial development and crisis management, while China's market has seen rapid development since economic reforms began in 1978. The analysis of market efficiency through fundamental and technical analysis reveals that the U.S. market more effectively reflects company performance in stock prices compared to the Chinese market, which still shows areas for potential improvement. This comparison highlights the distinct characteristics and developmental paths of the U.S. and Chinese stock markets, providing valuable insights for investors and policymakers in understanding the differences and guiding future market development and investment strategies.

Rentier capitalism, social reproduction, and the limits of liberalism: mapping gendered asset value in Kuwait

ABSTRACT This paper introduces the concept of citizenship rent to help explain the apparently contradictory coexistence of liberalising economic reforms and the entrenchment of patriarchal values. Citizenship rent (CR) is defined as the financial flows that move from the state to the citizen in the form of entitlements, employment, and access to state-subsidised goods, labour and business opportunities. Our innovative proposal substitutes transaction cost economics’ assumption of market selection for a selection by patriarchy to show how gender plays a central role in the reproduction of the asset specificities that increase transaction costs. This illustrates how an extractive, asset-based economy, like Kuwait's, can afford to double down on conservative social values, even at a considerable fiscal price, as long as the transaction costs of getting oil to the international markets are not increased through social disruption or political uncertainty. Rather than examining how women’s social reproductive work subsidises social and political stability, CR reveals women’s role in sustaining assets valuable to the state. This paper demonstrates that a close examination of the social values that inhibit transactions can also reveal patriarchal structures in rentier capital and exhibit a need to further analyse the patriarchal transaction costs that shape and sustain societies.

Privatisation of the Indian Economy

An important change from an essentially state- controlled economic structure to one in which private businesses are major players is represented by the privatisation of the Indian economy. This action was taken in the early 1990s as a part of a larger series of economic reforms with the goals of boosting economic development, encouraging competition, and raising productivity. The shift to privatisation affected many important companies, but it also advanced finance and telecommunications, enhanced foreign direct investment, and enhanced service delivery. Nevertheless, there were additional difficulties with the privatisation process, including as opposition from the political establishment, obstacles from regulations, and issues with social fairness. India's economy has profited immensely from privatisation in terms of enhanced market integration, innovation, and economic success despite these obstacles. An overview of the reasons for the privatisation initiatives in India, as well as the procedures, conclusions, and current discussions, are given in this abstract.

What do Components of Administrative Reforms Tell Us About the Quality of Economic Development? Evidence from a North African Country

This study aimed to identify the elements of administrative and economic reform in light of the new Libya as a state of institutions. The idea of this study was extracted from previous analyses. Given what this north African country is hurting from the collapse of all its institutions and all kinds due to the widespread administrative economic corruption that appears in its administrative structures, we wanted to address, even if only in a simple way, the study of administrative corruption, its causes, and how to reform it, hoping that Libya in the future will become a state of institutions where law and justice prevail. The problem here centered on studying the components of reforming the administrative economy in light of the new Libya as a state of institutions, where the study population consists of individuals working in public organizations in the city of Benghazi. However, due to the lack of time and effort, this study was restrained to selecting a deliberate sample represented by individuals working in the education and health sector administrations in Benghazi, the two most important sectors in the country. According to information from the Personnel Affairs Office in each ministry, 200 questionnaires were spread to individuals working in the two sectors. Several goals have been achieved through numerous consequences, the most important of which are: 1. Seventy-one samples indicated that the main target of corruption is the absence of patriotism and religious morals, followed by weak public oversight at a rate of 66%. 2. Negligence and negligence at a rate of 67% and bribery at a rate of 62% are among the most vital forms of administrative economic corruption that the study sample agreed upon. 3. 73% of the sample indicated that one of the methods through which administrative economic corruption is disregarded is applying the limits of the law, followed by 64% activating the role of oversight and changing its current status.

The impact of two-way FDI on the upgrading of China’s industrial structure: Based on the research in Chongqing

The improvement in the economic environment and the implementation of the “bring in and go global” strategy have had an impact on China's economic development and the optimization of its economic structure. The decline of Chongqing's traditional pillar industries has made the promotion of economic structure upgrading a key to economic development. The purpose of this paper is to study the role of two-way foreign direct investment (FDI) in industrial structure upgrading. This paper is designed to study the effect of outward foreign direct investment (OFDI) and inward foreign direct investment (IFDI) on the industrial structure upgrading from both theoretical and empirical perspectives. This study selects data from Chongqing from 1987 to 2022 and uses Stata 17.0 software for empirical analysis, based on Chenery’s “standard structure” industrial change model. The research findings show that OFDI and IFDI have a significant positive impact on the intensification and servicification of Chongqing's industrial structure and are significant at the 0.01 level. OFDI and IFDI have a significant positive impact on the rationalization of Chongqing's industrial structure and are significant at the 0.05 level. This means that two-way FDI has a positive effect on the optimization of industrial structure. The practical implication of this study is that it provides a realistic basis for Chongqing to fully leverage the advantages of international direct investment and promote the optimization and upgrading of the industrial structure, which also has enlightening significance for China’s economic structure reform.

RETURNS OF SOCIAL AND PRIVATE INVESTMENT IN VOCATIONAL EDUCATION IN NIGERIA

Globally, the world of work has shifted its focus from just education obtained through theoretical courses to vocational education and training because of the recorded returns in social and private investment. Thus, the sector has been at the heart of recent economic reforms worldwide. However, despite the upsurge in the supply of academic university graduates in Nigeria, employers of labor still face a supply shortage of skilled labor and this has been linked to the theory-oriented curricula of academic universities which do not prepare students for skill-intensive jobs. According to the Nigerian Bureau of Statistics report (2024), statistics the overall unemployment rate in Nigeria for the Q2 of 2023 was 4.2%, while among youth aged 15-24 years, the unemployment rate in Q2 of 2023 was 7.2%, up from 6.9% in Q1 2023. Meanwhile, in urban areas, the unemployment rate reached 5.9% in 2022, compared to 5.4% in Q1 2023. Within vocational training, the economic returns to practical or in-plant training seem to be slightly higher than those in school training. It is clear that tremendous resources, both human and material, are required to redress the situation. As Nigeria is lagging in preparing its workforce for the challenges of the rapidly changing global economy, the government must invest captiously and pay particular attention to vocational and technical education. Also, there is the need to improve the earnings of vocational school graduates through an increase in salary and attractive remuneration which will induce individuals to take vocational education and skills acquisition more seriously. KEYWORDS: Vocational Education, Education, Returns, Social and Private Investment and Nigeria.

Lebanon’s Economic Development Risk: Global Factors and Local Realities of the Shadow Economy Amid Financial Crisis

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general.

Economic Reforms in Asia: India\'s 1991 LPG Policy vs. China\'s 1978 Approach

Abstract: The 20ࢎ࢚ century saw a boost in the number of economic reforms and policies as people came to recognize the role and importance of economic stability in the evolving world. The primary areas of focus in this research paper are two well known countries: India and China. The Indian economy had reached near stagnation by the late 1980’s. Many argued that it was the complex system of rules, regulations, and licensing that hampered the growth and development of the country. India’s external debt rose and Foreign Exchange Reserves were greatly depleted. The prices of essential goods increased and the country was in deficit. The LPG reforms initiated a major change in India’s economy, bringing about a new era. This paper aims to discuss the details of the reform and contrast it with another such policy.

To Get Rich is Glorious: Examining China’s Purpose of Wealth and its Implications for Indonesia

AbstractThis essay examines the impact of Deng Xiaoping’s “To Get Rich is Glorious” concept on China’s economic reforms and its subsequent influence especially in Indonesia. Originating in the late 1970s, this concept spurred economic growth, entrepreneurship, and international engagement in China. The analysis delves into the historical aspects and current economic connections between China and Indonesia. It unveils China’s substantial contribution to Indonesia’s progress in infrastructure, development, digitalization, and industrialization. While bilateral relations present opportunities, challenges such as Indonesia’s reliance on Chinese debt and diplomatic issues are acknowledged. Future outlooks underscore the importance of ongoing collaboration to foster Indonesia’s economic growth, all within the framework of its partnership with China. In essence, Deng’s concept has not just influenced China’s course, but has also left a lasting impact on Indonesia’s economic path. Keywords: Deng Xiaoping; Economic Reforms; To Get Rich is Glorious.

Market or State? Post-Reform Distribution of Sociology Faculty at Chinese Universities

Neoliberal policies since 1978 have caused severe regional inequality in China. Cities in regions with high levels of marketisation attract top academic experts due to their proximity to economic incentives and prestigious universities. However, little is known about how economic reform has shaped the distribution of experts in the social science and humanities disciplines as they are less in demand on the market and often rely on support from the state. Using sociology as a unique case, this study investigates market and state influences on the regional distribution of sociology experts in Chinese universities based on city-level measurements. Sociology has a unique historical and paradigmatic connection with the state of China, which complicates any straightforward relationship between neoliberal policies and higher education inequality in sociology departments. Through a manual collection of 1,041 faculty profiles from 66 university websites, it was determined following the fractional logistic regression method that both the market and the state facilitate distribution. The city’s marketisation increases the internationalisation of faculty members in sociology departments, while the city’s position in the state’s administrative hierarchy maintains the sociology departments, regardless of the city’s marketisation. In general, the state still plays an important role in shaping academic expert distribution after 40 years of market reform in China.

How is Educational Equity Possible: The Evolutionary Logic of Compulsory Education Enrollment Policies from the Perspective of Historical Institutionalism

The enrollment policy for compulsory education concerns the right of school-age children and adolescents to receive equal education, as well as the realization of educational equity. Based on the analytical framework of historical institutionalism, this paper examines the evolutionary logic of the enrollment policy for compulsory education. Since the founding of New China, China's enrollment policy for compulsory education has undergone four periods: efficiency priority, balancing efficiency and fairness, emphasizing fairness, and implementing fairness, reflecting a shift in policy value orientation from efficiency to fairness. Economic system reform, uneven regional development, and the concept of educational equity are the underlying structural factors influencing policy changes. Rational choices made by actors such as the government, schools, and parents have led to path dependence in policy changes. Reform and opening up, initial education reform, and comprehensive reform in the field of education have become three critical junctures in promoting policy changes. We should always adhere to educational equity as the policy value goal, seek to break through path dependence at critical junctures, and focus on the coordination of multiple subjects in the gradual development of policies, in order to better achieve educational equity.

FDI REFORMS AND INDUSTRIAL WAGE AFTER THE LAUNCH OF “MAKE IN INDIA”: EMPIRICAL EVIDENCE

India gradually started liberalizing its industrial, trade and foreign direct investment (FDI) related policies since the launch of economic reforms in 1991. The empirical evidence on the impact of FDI spillovers on industrial wages in India has generated mixed results so far. The current study analysed the impact of FDI inflows on the real wage rates of the workers using data from seven major industrial sectors between 2001–2002 to 2019–2020. The two-stage least squares (2SLS) estimation results suggest that FDI inflows positively influenced both the skilled and unskilled wage rates. Moreover, FDI inflows in productive sectors led to a greater rise in wages vis-à-vis the unproductive sectors. In addition, key government policy initiatives like the Make-in-India (MII) scheme and FDI reforms were found to be effectively enhancing wage rates, though the impact on skilled wage rates was greater. The paper stressed the need to create a holistic environment that can attract FDI in both upstream and downstream segments, facilitating India’s deeper participation in global value chains (GVCs) and IPNs on the one hand and realisation of associated dynamic benefits on the other.

Economic assessment of the export potential of the Kyrgyz regions: Methodology for calculating and analysing the rating

The purpose of the study was to develop a methodology for assessing the export potential of the regions of Kyrgyzstan and conduct an analysis aimed at identifying key factors affecting competitiveness and the development of export opportunities. The methodology was based on the analysis of statistical data from official sources such as the websites of government agencies, ministries, statistical agencies, and international organisations to ensure the accuracy and reliability of the assessment of the export potential of the regions of Kyrgyzstan. The results of the study showed that from 2019 to 2023, there was an overall increase in export volumes in the regions of Kyrgyzstan due to successful economic reforms and infrastructure improvements. The greatest achievements are observed in Batken, Jalal-Abad, Talas regions and the city of Bishkek, while Issyk-Kul and Naryn regions need additional measures. The positive dynamics of the gross regional product (GRP) per capita confirms economic growth and an increase in living standards. The implementation of tax reforms and investments in infrastructure creates favourable conditions for exports. In turn, the international experience of countries such as Singapore, Germany, South Korea, Chile, and India demonstrates the effectiveness of investments in infrastructure and support for innovation to increase the competitiveness of the country's regions. The conclusions highlighted the importance of targeted government initiatives and investments for the balanced development of regions and maximising their contribution to the national economy through the effective use of export potential. Special attention was paid to the need to develop regional support programmes that promote the growth of export activity, improve infrastructure, and attract international investors. This, in turn, contributes to reducing economic disparities between regions and ensuring sustainable economic growth of the country in general

THE RELATIONSHIP BETWEEN TAX REVENUES AND DEMOCRACY: AN APPLICATION ON EMERGING AND DEVELOPING COUNTRIES

States collect taxes as one-way revenues based on their sovereign power to provide public goods and services. However, over time, taxes have evolved from being based solely on the pure sovereign power of the states to an authority arising from the power of representation. In this context, the connection between taxation and democracy has become one of the critical discussion topics in the fiscal sociology literature. Since the 13th century, the expeditions guiding economic and political reform movements, coupled with rebellions against non-representative taxation, have played a fundamental role in shaping concepts such as representation and taxation in the evolution of the modern public financial structures. In parallel with the theoretical discussions, a broad empirical literature examining the connection between democracy and taxation has emerged due to attempts to measure the typology of political regimes in a country. Empirical findings indicate a positive relationship between democratization and taxation in advanced economies; however, this connection is ambiguous for emerging and developing countries. This study takes this gap in the literature into account and examines the effects of democratization, urbanization, and institutional quality indicators on tax revenues for 41 emerging and developing countries in the 2000-2018 period with dynamic panel data analysis techniques. Our findings indicate that democratization and the increasing share of urban population in total population have a positive impact on tax revenues in the context of emerging and developing countries.

Interrogating the Dynamics of Social Movements in Burkina Faso and Nigeria

Two waves of mass protests were remarkable across West Africa in the first two decades of the 21st century. Drawing from the experiences of Burkina Faso and Nigeria, this study situates these mass protests within the temporal theory of social movements and argues that the focus of the protests in each wave shifted from protests against specific neoliberal economic reforms to discontent with governance institutions. However, the underlying driver of the mass protests remained the deteriorating condition of the underclass. The study explains the recurring character of mass protests and why they will remain everyday experiences across West Africa.

Undermining economic engagement and enlargement: The Kremlin’s impact on US foreign economic policy in Ukraine (1993–2001)

ABSTRACT The Clinton administration’s drive to enact reform in Ukraine during the 1990s was viewed at the time as being necessary for the nation’s revitalization and re-integration into Western Europe. Decades later, these policies have been critiqued for antagonizing the Kremlin, causing it to seek political control over its former satellite. This paper addresses the viability of the Clinton administration’s efforts and the reasons for their ultimate failure. It finds that despite its best intentions, the administration’s economic strategy faced unanticipated resistance from the Kremlin, as long-standing ties with Kiev undermined US-led efforts for economic and political reform.

Rate of Return (RoR) and Return on Investment (RoI) of Indonesia and India

In the era of globalization and economic liberalization, cross-border investment has become the main strategy for developing countries to increase their economic growth and global competitiveness. This research aims to explore and compare RoR and RoI in Indonesia and India and identify key factors that influence the differences in RoR and RoI between the two countries. This research method uses literature study and conceptual analysis to collect and analyze data from various sources. The research results show that the comparison of RoR and RoI between Indonesia and India involves various factors such as macroeconomic conditions, infrastructure, political stability, investment regulations, labor market, market, and industry, as well as innovation and technology. The two countries show significant differences and similarities in these factors, which influence investment returns. Indonesia has relatively good political stability and a developed capital market, while India stands out in the technology sector and economic reform. However, challenges such as complex regulations, inadequate infrastructure, and fluctuations in currency exchange rates remain obstacles to achieving optimal ROI for investors.

On the Contribution of China's Market-oriented Reforms to Economic Growth

This paper will analyze the reasons and environment of China's market-oriented reform, and argue the fundamental motivation and necessity of China's market-oriented reform. After that, this paper will cite relevant data and researches to analyze the internal logic of socialist marketization, explain the operation mode of China's market-oriented reform, and prove the effect of market-oriented reform. Finally, according to the reform process, this paper will divide the socialist marketization reform into three parts for analysis: the initial grass-roots social market economy experiment, the subsequent gradual deepening of the marketization reform of township and village enterprises, and the comprehensive socialist marketization reform and comprehensive deepening. This paper will follow the above steps to argue the reasons for the success of China's socialist market economy reform. Combined with the above argumentation process, this paper will come to the view that China's market-oriented reform has made an important contribution to China's economy.

State Coercive Power and the War on Cults in China

As a high-capacity authoritarian regime, China has made immense efforts to exterminate the Falun Gong and other “evil cults.” However, cult activities persist throughout the country. This article seeks to explain why the extensive government repression in China failed to achieve its goal of eliminating “evil cults.” By examining how economic reforms in China have created a relatively safe space for illegal activities, the article highlights the importance of going beyond a focus on the conventional coercive apparatus, and adopting a broad concept of coercive capacity for understanding authoritarian durability. State penetration facilitated by grassroots institutions provides a particularly important foundation for the regime’s coercive power. This study draws on a combination of quantitative and qualitative data. The quantitative study analysis uses a dataset compiled from 5,852 judicial cases in which 8,785 cult activities were prosecuted. The qualitative analysis is conducted as a case study based on fieldwork in a medium-size city in Hunan province.