Comparative Economics

This article discusses the different types of economic systems and their impact on developing nations. It explores the China model and its challenges to Western modernization.

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

ECONOMICS
Comparative economics
Introduction
There are basically three types of economic systems recognized by the economists
which are the command economies, market economies and the traditional economies. The
fourth one is the mixed economy. The topic of economic systems of developing nations states
that an economic system includes configuration of institution along with organizations which
is known to specify property relations within a given society. They are also known to
facilitate the organization and conduct the transactions between the society members which
are crucial for their effectiveness (Francks, 2015).
Summary
The china model states that the economic success took place under the authoritarian
political system in the past thirty years. There had been a rapid economic growth of China for
the past thirty years, which had been an eye catching to the general pattern of modernization.
The economic system is the system of production, distribution of goods and services and
resource allocation. It is known as the system where the country is known to distribute and
allocate various goods and services. China at that point of time had to strike balance between
the growth of the economy along with political stability between a market oriented economy
and an authoritarian state (Agénor & Montiel, 2015). The success of China bad raised a
question whether the Chinese model will be replacing the American style of capitalism. The
China model had known to pose a serious challenge for dominating the model of Western
modernization. A study have showed that one of the failures of the Washington Consensus
took place as a result of misinterpretation of the success of the industrialization of the East
Asian countries as a result of economic policies which are neo liberal in nature (Johnson,
2017). There are various reasons of why an economic system of the developing nations

ECONOMICS
receives less attention compared to the other nations. The developing nations in this case had
a per capita gross domestic product of $10,000. The indicators are known to be grouped into
the five categories. The nations which comprises of economic system which are usually labor
oriented are known to have significantly high level of protection for the workers and also for
their employment (Bertoldi et al., 2017). The nations that have statist economic system
known to have minor differences with the other nations.
Conclusion
There is presence of various advantages as well as disadvantages of the various kinds
of the economic system. The socialist market economy will not prevent china from the
achievement of high rate of the growth in the economy which is known to lift the living
standards of the people of china. The selective state control that is present over China known
to have made less vulnerable for the outside shocks.

ECONOMICS
Reference list
Agénor, P. R., & Montiel, P. J. (2015). Development Macroeconomics Fourth edition.
Economics Books.
Bertoldi, M., Eriksgård Melander, A., & Weiss, P. (2017). Steering the economic transition:
China's economic policy and structural reforms in the aftermath of the great recession.
Stato e mercato, 37(2), 283-310.
Francks, P. (2015). Was fashion a European invention?: The kimono and economic
development in Japan. Fashion Theory, 19(3), 331-361.
Johnson, H. G. (2017). Macroeconomics and monetary theory. Routledge.