Gradualism and the Evolution of the Financial Structure in China

38 Pages Posted: 26 Mar 2009

See all articles by Lino Sau

Lino Sau

University of Turin - Department of Economics S. Cognetti de Martiis

Date Written: February 23, 2009

Abstract

In this paper we set out to show that China has certain significant specificities in terms of the gradual (i.e. "step by step") approach it has followed in implementing reforms affecting its financial system. This is in contrast with the traditional shock or "big bang" therapy adopted by other emerging or transition countries, on the basis of what is known as the Washington Consensus, which notoriously prescribes the immediate, wholesale introduction of market-oriented systems through large-scale liberalisations and privatizations. Nevertheless, as we will endeavour to demonstrate the process of reform of China's financial system has not prevented problems of financial fragility from arising in the banking sector, and of corporate governance for firms, such as to threaten the very sustainability of growth in the future.

Keywords: Financial Systems, Financial Market Development, Banking

JEL Classification: G1, G21, G28

Suggested Citation

Sau, Lino, Gradualism and the Evolution of the Financial Structure in China (February 23, 2009). U. of Torino Department of Economics Research Paper No. 3/2009-GE, Available at SSRN: https://ssrn.com/abstract=1367097 or http://dx.doi.org/10.2139/ssrn.1367097

Lino Sau (Contact Author)

University of Turin - Department of Economics S. Cognetti de Martiis ( email )

Via Po' 53
Torino, 10124
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
191
Abstract Views
1,265
Rank
309,286
PlumX Metrics