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China’s Challenge to Economic Orthodoxy

This paper argues that the success China’s economic reform, contrasted with the difficulties of Eastern Europe and Russia, stems mainly from China’s willingness to tolerate decentralized experimentation and a gradual evolution of new institutions, whereas in Eastern Europe and Russia a sense of urgency led to wholesale importation of foreign institutions. This contrast in turn has implications for the usefulness of non-linear, dynamic analysis over the traditional neoclassical paradigm.

China’s Challenge to Economic Orthodoxy.pdf

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