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Economic Reform of the Distribution Sector in China

Richard Holton; Terry Sicular

American Economic Review 2016

Economic reform in China, slowed after the Tianamen Square incident in 1989, may be resuming. The Chinese Academy of Social Sciences has been asked by the central government to suggest further economic reforms in the distribution sector. Here we discuss this topic, noting first the role of distribution in the economic development process, then the changes in China's goods distribution process since economic reform was instituted. We conclude with observations about an ideal distribution system for China.

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