CAS EC 102 Lecture Notes - Lecture 17: Factors Of Production

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Ingrid L.Stefanovic

Document Summary

The organisation for economic co-operation and development has long urged its mainly rich member countries to push ahead faster with structural reforms. The report oozes praise for china"s bold reforms over the past quarter-century, which have allowed market forces a much bigger role in the economy and opened it up to foreign competition and investment. No member of the oecd has embarked on reforms that have restructured or closed thousands of state-controlled firms every year, with millions of job losses. The number of state firms has tumbled from over. This has been offset by rapid growth in the private sector. 2003 private companies accounted for 63% of china"s business-sector output (which in turn accounts for 94% of gdp). This compares with 54% in 1998 and virtually nothing in the 1970s. Collective enterprises, which are officially controlled by local government but in practice operate more like private firms, the private sector"s share was 71% in 2003 (see chart).