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A Comparative Performance Study

In: The Political Economy of China’s Systemic Transformation

Author

Listed:
  • Victoria Mantzopoulos
  • Raphael Shen

Abstract

This comparative performance analysis was performed on a macrolevel based on the determinants of economic growth in China and other transitional countries. China’s reform approach is compared on an economical and political basis with that of Poland, Ukraine, and Romania. The primary thesis is that during the reform approach of each country, the contraction of political freedom and/or civil liberties in each transitional economy equates to an increase of economic growth and vice versa. Thus, a negative correlation exists between the two determinants: political freedom/civil liberties and economic growth. This negative relationship is most prominent during the initial stages of reform. This analysis focuses on the affect of an economy to attract foreign investment in terms of capital inflow based on that of political freedom and civil liberties. Capital inflow, as measured by foreign investment and foreign trade, thus in return, affect economic growth.

Suggested Citation

  • Victoria Mantzopoulos & Raphael Shen, 2011. "A Comparative Performance Study," Palgrave Macmillan Books, in: The Political Economy of China’s Systemic Transformation, chapter 0, pages 111-140, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-11934-5_6
    DOI: 10.1057/9780230119345_6
    as

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