Post date: Nov 12, 2012 5:47:20 AM
"Reform without Losers: An interpretation of China's Dual-Track Approach to Transition" by Lawrence J. Lau, Yingyi Qian, and Gerard Roland.
Dual track is the Chinese experiment on its own economy. This paper tries to support dual track, claiming it is better than a sudden change. To me, dual track is a compromise between the crazy planned economy age and the modern open market economy. Dual track refers to the coexist of plan track and market track. In the paper, plan-track producers get worse off if they convert to market-track directly. According to this paper, the reform should be carried out gradually, allowing limited market liberalization at first and full market liberalization eventually.
This argument creates a strange argument that the transitional process of the market liberalization should be planned.