Prominent examples of marketization include contracting out, internal markets, management contracts, and market testing.
According to market transition theory (Nee 1989), due to systematic differences in income determination between a market economy and a redistributive economy, marketization will necessarily increase income returns from human capital and depreciate the value of political capital at the same time.
In the early years of marketization, the emphasis was especially on market opening and financing issues.
Fig. 2 Variations in urbanization, marketization, and industrialization among three interview locations the figure at left illustrates population size (in million) in three cities, Beijing, Shenzhen, and Jiangyou.
So too does the pattern of magnification of inequality through labour market outcomes that has resulted from domestic marketization and export orientation [ 68, 98].
"There is a real need for pragmatism here," they write, "and to avoid both the crushing inefficiency of market denial... and the pathology of ideological marketization".
Since the market reform, there has been a trend of marketization and privatization in childrearing.
At a time of rising inequality, the marketization of everything means that people of affluence and people of modest means lead increasingly separate lives.
In narrower terms, marketization refers to changes within the public sector where market mechanisms and incentives are introduced within public or publicly regulated organizations.
In the rush to harness efficiency gains from the market forces, policy-makers in developing and transition economics should not blindly apply marketization to the health sector.
