Strategic investment, uncertainty and distribution reform in the P.R. China: Why a gradual reform strategy works

Research output: Journal PublicationsJournal Article (refereed)

Abstract

A study attempts to provide an explanation to the success of the gradual reform strategy of China by showing that such a strategy can minimize the uncertainty created in the process of transition from a centrally-planned economy to a market economy. In a commitment versus flexibility game, low uncertainty motivates enterprises to adopt a strategy of pre-committing their investment which is crucial in obtaining a faster growth rate in the industry. In addition, China's successful use of market forces of competition and entry is also an important factor in the transition process.
Original languageEnglish
Pages (from-to)20-36
Number of pages17
JournalJournal of Applied Business Research
Volume12
Issue number3
DOIs
Publication statusPublished - 1 Jan 1996

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