Abstract. Following the collapse of the Soviet Union, post-Soviet countries started transition to the market economy, giving birth to various economic theories. The article presents review of Gradualistic theory of transition to the market economy and empirical research based on the economic indicators of China. In the model percentage values of savings and total investments are taken as variables indicating to the financial capabilities of the State. Empirical research demonstrated that norm for total investments and savings has direct growing relationship with the Gross Domestic Product, which is a logical outcome. Moreover, factors of government reform activities and government support have also direct growing relationship with the growth in Gross Domestic Product. Received outcomes are adequate to the theoretical model and indicate to the efficiency of Gradualistic strategy.

Keywords: Shock Therapy, Gradualist Transformation, gross domestic product, government force.