Review Of Nanjing National Governments Economic Police (1927-1937)

The issue about the path of developing country economy growth and the role ofgovernment in the economy developing is always being the concentration of economics.Based on their theoretic analysis, economists showed their different opinions on thisissue. But historic facts show the limitation of those theories on some aspects. Recently,some scholars proposed New Structural Economics based on the summery of previoustheory. But it will take some time for the policies in accordance with this theory works.So this paper put this theory on a certain time of Chinese history and deduces the policyand checks its effect to test this theory.In the early Nanjing government era, various aspects of China’s economy are in theirinfancy. Chinese economy need to develop rapidly to face the deepening national crisis atthat time. But before that it was suffering the oppression of Beiyang government and thelooting of foreign capital. Nanjing government formulated the economic developmentplanning and implementation of appropriate economic policies. These economic policieshad a positive impact on economic development at the time. Did these policies make theChinese economy grow with the fastest speed in the prevailing conditions? Whichindustry should be encouraged to produce maximum benefits under the constraints oflimited resources? This makes the new structural economics come into play, and this alsomake it feasible to test this theory.The main contents of this paper are to examine the New Structure Economicswith economic history and comment Nanjing National Government’s economic policywith the tested part of New Structural Economics. This paper first describes thetheoretical framework of the new structural economics and points out its heritage andinnovation to the development economics. And then a brief description of the backgroundand economic police of Nanjing National Government (1927-1937) is given to preparefor later analysis. The fourth part of this paper put the new structural economics into thetime of the Nanjing national government was founded. With the theory of NSE, we getthe industries that the government should support in order to get the fastest speed in itsdevelopment. Then for the constraints of the selected industries with potentialcomparative advantage, new policies should be made to overcome them. So we get the economic policies deduced from the NSE that the Nanjing government should implement.After the comparison of the economic policies implemented in the history and thosededuced from theory, the fifth part investigate the effects of consistent part andinconsistent part. Thus we get some conclusions about the NSE.Finally, this paper use the verified part of the NSE to evaluate economic policies ofthe Nanjing National Government (1927-1937) and get the following conclusions: theNanjing government’s economic policy direction should be to encourage the developmentof agriculture and light industry and other industries with comparative advantagedevelopment but the Nanjing government emphasis heavy industry too much. Its failureon the political directionality make the Chinese economy failed to grow on a faster pace.In addition, this paper drew some inspiration in the formulation of the government’seconomic development policies.