Incentive policies and china’s economic development: Change and challenge

Abstract

Incentive policies have been emphasized by many governments as one of the major policy tools to promote economic development in their societies. For this paper I have examined the application of incentive policies in China to improve economic performance during China’s reform years. In the paper are theoretical reviews about various types of incentive policies and different arguments about their effects. The development of Chinese incentive policies is introduced and analysis of their achievements in improving economic growth and attracting foreign investment is presented. Challenging issues of incentive policies have been related to concerns about effectiveness and equity, accountability and transparency, as well as economic upgrade and balance. Implications of the Chinese development experience are provided for future study of incentive policies.

Citation

Liou, K.T. (2012), "Incentive policies and china’s economic development: Change and challenge", Journal of Public Budgeting, Accounting & Financial Management, Vol. 24 No. 1, pp. 114-135. https://doi.org/10.1108/JPBAFM-24-01-2012-B006