Towards an Analytical Framework of Transition Process and Strategy for a Developing Socialist Economy

Abstract

This paper attempts to build a theoretical framework for analyzing the process and strategy of transition from a socialist economic system to a market economy. We tried to incorporate both transition and development perspectives in a single framework that concurrently analyses the transition process and the development mechanism of countries in transition. We also showed that the gradualist strategy, rather than the shock-therapy strategy, is appropriate and effective for developing socialist countries such as China and Vietnam.