From Supply School to Supply-side Structural Reform：A Review of Supply-side Theory Developments

Abstract

Reform of the supply side is proposed for the first time, but “supply”, “supply-side”, and “supply management” are not. Early 18th century, the French economist Say put forward the most distinctive idea of supply management - Say's law, which was considered as the theoretical source of the supply economics. As with the development track of most economic theories, the Western Supply School economics has also been continuously developing under the influence of the development and evolution laws of the negation of negation that are involving in “wave advance” and “spiraling”. In the 1980s, related theories of the supply economics were introduced into China, and Chinese scholars carried out a series of reflections and innovations on it based on theory and practice. With the "Supply-side structural reform" proposed, supply theory is prevalent again. Connecting the supply-side with reform is a unique meaning given by China. With China’s practical exploration and theoretical development, it also has rich time connotation, and the supply-side economics is standing out. This paper teases out the past and present of supply-side theory systematically and provides a review of the latest research on it.

Keywords: supply-side school, supply-side structural reform, supply theory, review