Social Sciences in China (Chinese Edition)

No.7, 2017

Seeking the Theoretical Source of Supply-side Structural Reform

(Abstract)

Fang Fuqian

The theoretical source of supply theory and supply-side structural reform is to be found in classical British and French economics, with their longstanding attention to supply, rather than in the later emergence of Jean-Baptiste Say and Say’s law, which attempted to deny the possibility of economic crises. Marx deepened supply theory, holding that production (supply) structure and product (income) distribution structure depended upon the nature and structure of relations of production. This theory has been especially significant in guiding the supply-side structural reform in China. The main reference value of the American supply-side school lies in some of its policy proposals for reforming and managing supply. Supply-side structural reform in China requires construction of a socialist theory of supply with Chinese characteristics.