National system of institutional innovations and the institutional framework of China’s economic development

Abstract

This article addresses the complexity and breadth of China’s economic development since the Economic Reforms of 1978, from a macro-institutional perspective. It aims to understand the compatibility between the composition and configuration of the “institutional matrix,” encompassing the relationships among the state, markets, and enterprises. Particular emphasis is placed on the existence of a “deeply embedded institutional framework” as a fundamental component of China's economic planning, which extends across all administrative spheres and includes both domestic and foreign private sectors. This framework has supported ongoing institutional innovations, which have, in turn, been essential to the country's economic development.

JEL Classification: O43; O21; P51.