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Currently, China’s economy is in the critical phase of transforming economic development patterns and replacing old growth drivers with new ones. Whether it can successfully overcome the “middle-income trap” has become a significant issue attracting wide attention.

Driven by underlying digital technologies such as artificial intelligence, blockchain, cloud computing and big data, the fourth industrial revolution featuring the booming digital economy has provided significant opportunities for China’s economy to “overtake” and overcome the “middle-income trap”. The transformation of economic development pattern, the optimization of industrial structure, and the change of growth drivers, brought by the deep integration of digital and real economies are the keys to leaping over the “middle-income trap”.

From the supply side, the digital economy can improve the quality and efficiency of the supply side and promote the supply-side structural reform and economic growth from the following three aspects: First, promote the quality, efficiency and diversification of the supply system; second, promote networking, opening-up and synergy in the innovation system and third, promote the socialization, modularization and flexibility of production pattern. From the demand side, the digital economy can boost the new drivers of the “troika” of economic growth consisting of consumption, exports and investment by changing the market investment direction, promoting consumption upgrade and fostering export strengths. However, once these two attributes interact with each other, especially when data is combined with capital, the most adhesive factor in the market economy, a series of new social relations will then be produced based on the technical attribute, resulting in significant adjustments in social relations, involving both positive and negative externalities.

To overcome the “middle-income trap”, it is necessary to adapt to the laws of economic evolution and promote a fundamental change in economic growth drivers; boost the high-quality development of the digital economy by strengthening the support role of data in the digital economy; and accelerate digital industrialization and industrial digitalization to realize the integration of digital and real economies.

The purpose of this chapter is to study the correlation of evolutional and revolutionary transformations in a socio-economic system in the conditions of the formation of an information economy by taking the example of modern Russia.

To distinguish these transformations by studying the information economy, based on the materials of reports and recommendations of the OECD and the World Bank, the indicators that show macro-economic transformations in a socio-economic system in the conditions of formation of an information economy and their control values that correspond to evolutional and revolutionary changes were determined. During the research, the authors used the method of comparative analysis for comparing the values of the indicators in modern Russia with the control values of the indicators that show macro-economic transformations in the socio-economic system in the conditions of the formation of an information economy and classify the corresponding transformations as evolutional and revolutionary. The information and analytical basis includes the materials of the reports of the Higher School of Economics, the OECD, the World Bank, the International Telecommunication Union, the World Wide Web Foundation, the Digital single market, the INSEAD, the WIPO, and the Cornell University.

As a result, it is concluded that the planned transformations in a socio-economic system in the conditions of formation of information economy by implementating the optimization model of this process have an evolutional characteristic. Herein, certain transformations have a revolutionary nature.

The authors determine that the largest revolutionary transformations are due for 2022–2025. However, their classification is caused not by high rate of growth of the indicators’ values but by their achievement of control values. Therefore, the largest socio-economic shifts in the economic system in the modern Russia due to the formation of an information economy will take place in 2019–2022. Hence, in this period, an anti-crisis management of this process should be conducted.

Poverty alleviation has been a major theme of China's modernization process since the founding of New China. This paper points out that China's poverty alleviation process presents three stylized facts: “Miraculous” achievements of poverty alleviation have been made on a global scale; the poverty alleviation achievements mainly occurred in the high growth stage after reform and opening up; the poverty alleviation process is accompanied by the structural transformation of the urban–rural dual economy.

Therefore, a logically consistent analytical framework should form among the structural transformation of the dual economy, economic growth and the achievements in poverty alleviation. In logical deduction, the structural transformation of the dual economy affects rural poverty alleviation through the effects of labor reallocation, agricultural productivity improvement, demographic change and fiscal resource allocation.

The first two refer to economic growth, and the latter two are alleviation policies. The combination of economic growth and poverty alleviation policies is the main cause for poverty alleviation performance. China's empirical evidence can support the four effects by which the structural transformation of the dual economy affects poverty alleviation.

China's socialist system and its economic system transformation after reform and opening up provide an institutional basis for the effects to come into play. After 2020, China's poverty alleviation strategies will enter the “second-half” phase, namely, the phase of solving the problems of relative poverty in urban and rural areas by adopting conventional methods and establishing long-term mechanisms. This requires the facilitation of the reconnection between poverty alleviation strategies and the structural transformation of the dual economy in terms of development ideas and policy directions.

This is an exploratory paper of personal reflections on economic system issues, based on half a century of wide-ranging professional experiences, summarized in the section “Professional Background.”

The following broad generalizations are elaborated: (1) For a country’s sustained good economic performance, there is no alternative to a predominantly market-driven economy, supported by appropriate institutions. (2) In societies at all levels of development, it is essential to have mutually supporting cooperation between the private sector and the state (section “An Economic System with Universal Features?”). (3) The quarter-century transformation progress of the 29 former centrally planned economies of the USSR and Eastern Europe has been most uneven, as documented in the section “Relationship between Economic and Political System Transformation.” (4) Regarding China, it is NOT the country’s authoritarian political system but the skillful transformation of its economy into a market-driven one that has been principally responsible for the country’s impressive, long-term economic performance (section “China’s Economic Growth and Development Model”). The paper concludes by suggesting that the most fundamental determinants of a country’s long-term economic success are some combination of its geography, institutions, culture, and momentous historical events.

The purpose of this paper is to propose and verify the influence mechanism of various kinds of infrastructure investment on farmers' income in rural China. It further analyzes the effect of rural infrastructure investment on rural economic transformation.

This research is used to GMM model to verify the relationship between infrastructure investment and farmers' income; furthermore, the mediating effect model is used to verify the linear conduction mechanism, and panel threshold model is used to verify the nonlinear conduction mechanism.

The results show that: (1) Rural infrastructure investment can indirectly affect farmers' income by changing land efficiency and land use structure; (2) The impact of infrastructure investment on farmers' income is nonlinear; (3) Increasing infrastructural investment of productivity and transportation will contribute to accelerating the transformation of rural economy.

This paper expands the research on the impact of rural infrastructure investment on farmers' income; it analyzes the inner mechanism and enriches the research contents in this field; the influence of various infrastructure investment on rural economic transformation is further discussed; it provides policy suggestions and theoretical basis for accelerating the transformation of China's rural economy.

The entire world is now witnessing the Fourth Industrial Revolution and Artificial Intelligence (AI) is indeed altering the lives of the many in both developing and developed countries. Massive digital transformations are affecting the economies of those countries and are bringing with them many promised merits, as well as many challenges to face. This paper aims to examine the relationship between digital transformation (as a one facet of the fourth revolution and AI trends) on one side, and economic development, labor productivity and employment on the other side.

The paper analyzes different indices of digital transformation, and then uses the Digital Evolution Index (DEI) to study those relationships in a group of developing countries using feasible generalized least squares method (FGLS).

The results show a positive relationship between the digital transformation index and economic development, labor productivity and job employment. Females seem to gain more from digital transformation compared to males, as suggested by the positive relation with the first and the insignificant relation with the latter. The relationship with vulnerable employment is not significant; more evidence is still needed to judge whether digital transformation will have an impact upon the vulnerable employees in the economy.

The paper focused on the impact of digital transformation upon total aggregate employment. Future research is still needed to examine the impact upon the structure of the labor market and the shift of occupations.

The paper aims to add to in the literature regarding the relationship between digital transformation, economic development, employment and productivity in the developing world. The implications of those relationships are of significant importance to policymakers regarding how much support should be given to encourage the digital transformation. At the same time, it shall also indicate how much social support policies are required – if any – to lessen the negative impact of digital transformation on the vulnerable groups inside the country. Another contribution is using a single composite index for digital transformation that is comparable across the chosen set of developing countries, instead of using single indices each capturing a different dimension of digital transformation.

While the theoretical interaction of the creative and cultural industries and entrepreneurship in business is gaining attention in the literature, such entrepreneurial practices are extending their role and position in the economy and in urban areas undergoing transformation. The purpose of this paper is to contribute to that literature by generating a model that links creative entrepreneurship with urban transformation as places see and expect continuous change and development.

The authors adopt a conceptual approach, embedded in a triple helix model, of creative entrepreneurship and urban transformation of the Baltic Triangle area of Liverpool, England. The authors inform this through a case study analysis, including qualitative interview data relating to the Baltic Creative.

The authors demonstrate the need for interdisciplinary research to assess value creation, value delivery and innovation as contributors to urban transformation based on creative entrepreneurship, while at the same time resulting in creative placemaking.

This is a conceptual paper that will be used to frame future empirical research on generating additional insight by interviewing key actors to heighten understanding of innovation, value creation and value delivery process of placemaking, creative change and urban transformation.

This work can help inform creative policymaking, planning and development to achieve both social and economic impacts for a place and the wider region.

The authors both contextualize and show the transferability of the model, using the example of Liverpool’s Baltic Creative in Liverpool’s Baltic Triangle area of the city, highlighting the impact of creative change.

Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the establishment of the mechanism with increasing returns to scale. The paper aims to discuss this issue.

This paper argues that the overall economic structure of the developing economy has been divided into the sector of constant or decreasing returns to scale and the sector of increasing returns to scale due to the dual economic structure. Among them, the supply-side structural reform is mainly to reduce the sector of decreasing returns to scale and increase the sector of increasing returns to scale. Based on the hypothesis of such two-sector economic structure in the supply side of developing economies and on the industrial data, this paper empirically tests the returns to scale of China’s supply structure. The result suggests that so far the sector of constant or decreasing returns to scale dominates the supply structure of China’s economic growth, which results in the state of decreasing returns to scale in China’s overall economy.

Therefore, to realize the long-term sustained growth and transformation of the development pattern of China’s economy, the authors must carry out the supply-side structural reform, vigorously develop the modern industrial sectors characterized by modern knowledge and technology, and promote the development of an innovation-driven economy.

Besides, the authors must accelerate the transformation from traditional industrial sectors to modern industrial sectors, actively promote China’s industrial structure toward rationalization and high gradation, as well as build a modern industrial system so as to facilitate the formation of the mechanism of increasing returns to scale and accelerate the transformation of the driving force of China’s economic growth.