China's Path-Dependent Transition : Culture Mediating between Market and Socialism

The concept of path-dependence is applied on the Chinese transition to the market economy, bearing the questions in mind, firstly, whether in China a new model of "market socialism" is emerging, and secondly, whether China is a successful case of gradualism as opposed to "big bang" transition. I introduce three different types of path-dependence and argue that only the most complex case of cognitive path dependence allows to make a case for gradualism. This is condensed into a concept of culture. I apply this framework on two case studies, both related to the evolution of property rights. These are land ownership and local industry in the rural areas