This book is an investigation into chinas reform process during the period 1979 to 1987 with especial reference to the effect of the process on the industries mostly manufacturing that are still owned by the state the data on which this book is based results from a large scale study in which the authors collaborated with the institute of economics of the chinese academy of social sciences . Economic reform and state owned enterprises in china 1979 87 donald hay derek morris guy liu and shujie yao a clarendon press publication studies on contemporary china. A dual price system was introduced in which state owned enterprise reform 1979 state owned industries were allowed to sell any production above the plan quota and commodities were sold at both plan and market prices allowing citizens to avoid the shortages of the maoist era moreover the adoption of industrial responsibility system 1980s . Reform of the economic system beginning in 1979 the government also tested a fundamental change in financial procedures with a limited number of state owned units rather than remitting all of their profits to the state as was normally done these enterprises were allowed to pay a tax on their profits and retain the balance for . This book is the result of a large scale investigation through detailed questionnaires of chinas reform process over the years 1979 87 it analyzes chinas gradualist transition to a market economy and concludes that although the reform program has been a qualified success further progress requires the introduction of private ownership
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