China: Internal Market Development and Regulation

Over the last decade, China has made remarkable strides towards the establishment of a market economy. But the progress achieved so far has been uneven. This report evaluates the extent to which China, through the adoption of specific measures, has been able to establish well-functioning markets. Well-functioning markets imply markets which transmit accurate signals to economic agents in terms of production decisions and factor allocation. The report distinguishes between the regional or spatial…