Economic-Social Interaction in China

Abstract

This paper analyzes economic-social interaction in China in connection with the country's change of economic system. I define an economic system in terms of a multidimensional vector of broad institutional characteristics, and I emphasize that important features of the social development are closely related to specific changes in these various dimensions. I classify China's options for future social improvements into three broad categories: policies that improve the stability and distribution of factor income; government-created wedges between factor income and disposable income; and improvements in the quantity, quality and distribution of human services, such as education and health care.

Keywords: China, economic transition, typology of economic systems, social reforms

JEL Classification: P2, H00, I00