About Xiaojing ZhangXiaojing Zhang, is a professor of economics and the Deputy Director-General of National Institution for Finance & Development, Chinese Academy of Social Sciences (CASS).
In theory, a distortion refers to a departure from the perfect competitive equilibrium with no externalities and in which resources have been optimally allocated so that each economic agent maximizes his or her own welfare. Thus, distortions are closely associated with market imperfections. In reality, an economy with no distortions does not exist—both advanced and developing economies use government interventions, such as stabilization policies, development strategies, industrial policies, administrative regulations, and so forth, which can be viewed as distortions, broadly defined. Read more.
Subscribe / Connect to Asia Pathways
- Agriculture and rural development
- Information and Communications Technology
- Poverty Reduction
- Public-Private Partnership
- Regional Cooperation
- Social Development and Poverty
- Video Blog
- What are the policy options for reversing productivity decline?
- VIDEO BLOG: Remove trade barriers to improve health systems and lower patients’ costs
- Financial literacy and savings: Evidence from Cambodia and Viet Nam
- International remittances and poverty reduction
- Mergers and acquisitions and corporate innovation
- Escaping the middle income trap: Innovate or perish on
- Hometown investment trust funds: A sustainable solution for financing green energy projects on
- Why is Income Distributed Unequally? A Comparison of Japan and the United States on
- Why poor countries should invest first in national trade infrastructure on
- Market failure or low-skills equilibrium? on