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Concept of State-Directed Economy

  • Luyao Che
Chapter

Abstract

A state-directed economy can be defined as a model whereby the state is instrumental in guiding economic development, based on the rule of the market. This chapter suggests that the contemporary state-directed economic model has been developed into a complex and highly institutionalised economic system in which the state is deeply embedded in the market. This chapter then elucidates the specific approaches in which the state guides the development of its economy under a state-directed economic system. It argues that the state simultaneously fulfils a triple role, namely as a planner, a competitor, and a regulator of the market. Finally, the chapter traces the contemporary history of the Chinese economy, in which economic reforms central to China’s state sector have constantly been undertaken, and thereby presents a picture of how deep integration between the state and the market has been gradually achieved.

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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  • Luyao Che
    • 1
  1. 1.China University of Political Science and LawBeijingChina

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