China's economic reforms in a comparative perspective

World Bank Reprint Series: Number 417 REP-41 7 Bela Balassa / d? 7 China's Economic Reforms in a Comparative Perspective Copyright (o 1987 by Academic Press, Inc. Reprinted with permission from the Journal of Comparative Economics, vol. 11 (1987), pp. 410-26. Published by the Academic Press, Inc., Florida.   Bela Balassa China's Economic Reforns in a Comparative Perspective  JOURNAL OF COMPARATIVE ECONOMICS 11, 410-426 (1987) China's Economic Reforms in a Comparative Perspective' BELA BALASSA The Johns Hopkins University, Baltimore, Maryland 21218 and World Bank, Washington, D.C 20433 Balassa, Bela-China's Economic Reforms in a Comparative Perspective The paper makes recommendations for extending the reform effort while establishing macroeconomic equilibrium in China. The recommendations concern increasing the decision-making power of enterprises, which are to respond to profit incentives; creating the conditions for effective competition in Chinese industry; reforming prices; linking bonuses to work performance; establishing an effective monetary policy; rationalizing the banking system; and setting realistic interest rates. The paper indicates the need for taking simultaneous action in all these areas. J. Comp. Econ., September, 1987, 11(3), pp. 410-426. The Johns Hopkins University, Baltimore, Maryland 21218 and World Bank, Washington, D.C. 20433.