The role of the state in making a national market: The evolution of the grain market in China (1978‐2000)

Abstract

Purpose

The paper aims to examine Karl Polanyi's view of market evolution in the context of the emergence of a national grain market in China's transition economy.

Design/methodology/approach

The dataset used includes information about inter‐provincial grain trade on China's grain market from November 1999 to October 2000. A priori blockmodelling method is used for hypothesis testing.

Findings

This paper finds that a partially integrated national grain market had emerged at the beginning of the twenty‐first century in China in spite of local protectionism. Additionally, the emergence of this market is found to be partly a result of the reform‐oriented state's attempt to create national wholesale grain markets.

Originality/value

The findings of the paper might have implications for market development in both China and other transition economies.

Citation

Zhou, W. (2010), "The role of the state in making a national market: The evolution of the grain market in China (1978‐2000)", China Agricultural Economic Review, Vol. 2 No. 3, pp. 276-297. https://doi.org/10.1108/17561371011078426