4.Concluding remarks

This paper applied the framework of a Marx-Sraffa-von Neumann model to the Chinese economy.First, we applied Kantorovich's view plan theory, which states that the production of all consumption goods is guaranteed and exports and imports are ignored, to the Chinese economy.We made the following three findings.

First, from the calculation result of fixed capital shown in Fig.1, the actual value of other sectors seems to approach the theoretical value except sector 3（construction sector）, which is considered to be because political factors other than a planned target are working somewhat more strongly compared with the other sectors.Likewise, the actual value of the current goods sector is above the theoretical value（Fig.2）.

Figure 1:The optimal solution according to a Kantorovich view plan and actual value（1997, fixed capital）

Figure 2:The optimal solution according to a Kantorovich view plan and actual value（1997, current goods）

Second, although the actual values of sectors3,4, and 6 are approaching the theoretical value, as shown by the calculation result of the consumption goods sector in Fig.3, sectors 1,2, and 5 are much lower than the theoretical value.

Third, as shown in Table 4, when the binding condition of fixed capital is added,production quantity tends to fall.By contrast, when the labor necessary for the plan of the last term and the actual amount of labor supply are in agreement, full employment is attained as production quantity falls under the conditions of the labor resource constraint.

Therefore, infrastructural improvement and large-scale capital investment in China are necessary to be controlled by the government.Indeed, an infrastructural improvement plan has continued actively since the 1990s.As shown from the calculation of the view plan model of Kantorovich, the investment management of fixed capital is in general suitable.

Concerning current or consumption goods, the socialistic market economy has been especially prominent since the 1990s, with a market framework introduced gradually, as shown by the application calculation.Thus, there has been a certain amount of deviation in actual value from the optimal path.

Figure 3:The optimal solution according to a Kantorovich view plan and actual value（1997, consumption goods）

Therefore, it seems as though the application calculation of turnpikes allows for the macro control of the actual economy.Thus, this can be used for economic policymaking, as a tool for the objective analysis of the socialist economy when an economic plan clearly exists.