Resource Allocation in Developing Countries: The Market Mechanism and the Role of the State

2008 ◽  
pp. 327-372
Author(s):  
A. P. Thirlwall
Keyword(s):  
Resource Allocation ◽  
Developing Countries ◽  
The State ◽  
Market Mechanism ◽  
Role Of The State

Viewpoints of the Communist Party and State of Vietnam about Resources and Resource Allocation in the Socialist-Oriented Market Economy

2017 ◽  
Vol 33 (4) ◽  
Author(s):  
Nguyen Hong Son ◽  
Pham Thi Hong Diep
Keyword(s):  
Resource Allocation ◽  
Market Economy ◽  
Communist Party ◽  
The State ◽  
Market Mechanism ◽  
Economic Resources ◽  
Doi Moi ◽  
Role Of The State ◽  
Economic Thinking

The paper reviews Vietnamese Communist Party and the State’s viewpoints about resources and resource allocation in the socialist-oriented market economy. Over 30 years of Doi Moi, there has been a turning point in the economic thinking of the Communist Party of Vietnam. Party’s perception of resources and mechanism of resource allocation in the socialist-oriented market economy has been changing and developing. From the concept that the State is the sole subject that allocates all economic resources according to the central planning mechanism, to date, market mechanism has been identified “to play a key role in effectively mobilizing and allocating development resources”. The role of the State is to guide development on the basis of respect for market principles. In order for the market mechanism to maximize its role in allocating development resources, efforts should be made to improve the synchronous and modern market economy institutions.

scholarly journals Have party premiums disappeared in post-2000 China? The influence of negative ability bias from position conditioning

2019 ◽  
Vol 5 (1) ◽  
pp. 57-79 ◽  
Author(s):  
Ling Zhu ◽  
Tony Tam
Keyword(s):  
Resource Allocation ◽  
Communist Party ◽  
General Social Survey ◽  
The State ◽  
Party Membership ◽  
Social Survey ◽  
State Sector ◽  
Role Of The State ◽  
Ability Bias

Communist Party membership is often associated with higher incomes in socialist regimes because it is an important credential for obtaining state-sector jobs and cadre positions. During the first two decades of marketization in China, the income returns to Communist Party membership (the party premium) clearly persisted. However, recent studies have documented an insignificant party premium in post-2000 China. Considering the persistent role of the state in resource allocation, this phenomenon is puzzling and lacks clear interpretation. Drawing on the knowledge of collider conditioning, we hypothesize that this phenomenon stems from a negative ability bias generated by conditioning on endogenous job positions. Using the China General Social Survey 2008, we re-examine the post-2000 party premiums. The results support this hypothesis and demonstrate that this negative ability bias overwhelms the usual positive ability bias and any residual party premiums. Party premiums persist after 2000 and are reflected in positions where the negative ability bias is less influential.

Generalizing New Industrial Districts: A Theoretical Agenda and an Application from a Non-Western Economy

1995 ◽  
Vol 27 (1) ◽  
pp. 81-104 ◽  
Author(s):  
S O Park ◽  
A Markusen
Keyword(s):  
Developing Countries ◽  
South Korea ◽  
The State ◽  
Industrial Districts ◽  
Industrial District ◽  
Model Based ◽  
Italian Case ◽  
Role Of The State ◽  
Western Economy

New industrial districts occur in a number of forms, some of which are not subsumable under the flexibly specialized, locally embedded, and endogenously driven model based on the Italian case. In this paper, we critique the industrial districts literature, focusing on the role of the state, interdistrict mobility of labor, nonlocal externalities, and non-place embeddedness in district formation and character. We introduce the notion of the satellite industrial district, comprised of branch operations of nonlocally based corporations, as an example of a rapidly growing industrial district distinct from Marshallian and Italianate forms, and argue with evidence from South Korea that these types of districts may predominate, especially in developing countries.

scholarly journals The Essence and Specific Characteristics of the Fiscal Mechanism for Regulating the Investment Development of the National Economy

2020 ◽  
Vol 9 (3) ◽  
pp. 78
Author(s):  
Viktoriia Rudenko ◽  
Ruslan Voloshchuk
Keyword(s):  
National Economy ◽  
Self Regulation ◽  
Developed Countries ◽  
The State ◽  
Market Mechanism ◽  
Investment Activity ◽  
Role Of The State ◽  
Investment Process ◽  
The Impact

The issues of the place and role of the state in the investment process has not lost relevance for many decades. Some scholars, appealing to the experience of developed countries, propose to minimize the role of the state in the investment sphere. This view is based on the fact that state participation cannot ensure a more efficient allocation of investment resources than a market mechanism of self-regulation. Other scholars believe that all the troubles in the economy are due to the fact that the state has minimized its influence on the investment sector, thereby causing a decrease in its activity. Obviously, both positions of scientists cannot be rejected mechanically. However, the practice of conducting investment activities in Ukraine has clearly shown that the state's departure from the investment sphere has actually cleared the way for anarchy and inconsistency in the investment process. At present, the state is obliged to influence investment activity by choosing effective means of its regulation, relying primarily on the fiscal mechanism. The article is devoted to the study of the essence of the fiscal mechanism for regulating the investment development of the national economy and the identification of its specific features. The specifics of the scientific tasks that are the subject of the study required the use of a set of special methods, the use of which helped to analyze the essence of the fiscal mechanism for regulating the investment development of the national economy and to highlight its specific characteristics. The etymology of the concept of “fisc” is considered in the article. Approaches to the interpretation of the term “mechanism” are highlighted. The economic meaning of the definition of “regulation” is substantiated. The essence of the fiscal mechanism for regulating the investment development of the national economy is determined. The specific features of the fiscal mechanism for regulating the investment development of the national economy are singled out and characterized. The study found that the impact of the fiscal mechanism on the investment development of the national economy is due to its specific characteristics and the focus of its components at solving specific problems and achieving a real effect due to financial resources that are formed, distributed and used to meet the investment needs of economic entities.  Keywords: fisc, mechanism, regulation, investment development, fiscal mechanism for regulating the investment development of the national economy

16. Development

2017 ◽  
Author(s):  
Tony Addison
Keyword(s):  
Development Strategy ◽  
Development Policy ◽  
Poverty Reduction ◽  
The State ◽  
Market Mechanism ◽  
Economic Role ◽  
Role Of The State ◽  
Policy Objectives ◽  
The Relationship

This chapter examines development policy objectives and their explicit focus on poverty reduction. It first considers different definitions of development policy objectives before discussing the roles that the market mechanism and the state should play in allocating society’s productive resources. In particular, it looks at the economic role of the state as one of the central issues dividing opinion on development strategy and explains how rising inequality led to a backlash against economic liberalization. The chapter proceeds by exploring the relationship between economic growth and poverty reduction, along with the political difficulties that arise from economic reform. It also analyses the importance of transforming the structure of economies and the new global development landscape, including changes in development finance.

Planning for Growth and Development

2021 ◽  
pp. 15-53
Author(s):  
K. L. Datta
Keyword(s):  
Economic Reform ◽  
State Intervention ◽  
The State ◽  
Market Mechanism ◽  
State Governments ◽  
State Control ◽  
Economic Activities ◽  
The People ◽  
Role Of The State

This chapter spells out the process of Plan formulation in India since Independence, with its turns and twists, to maximize the rate of economic growth, ensure its sustainability, and improve the standard of living of the people. It delineates the change in form and content of planning from state control on economic activities to neo-liberal economic reform measures, which placed reliance on market mechanism. Describing the roles of central and state governments in the formulation of Five Year Plans, it outlines the proactive role of the state in the pre-reform period. It shows how under economic reform, the space of production and trade relinquished by the state was filled by the private sector, and the major responsibility of growth was transferred to it. It summarizes the role of planning in a market economy and indicates certain issues, which make state intervention in markets a justifiable necessity.

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