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The Fundamental Institutions of China's Reforms and Development

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Xu, Chenggang·2011·Journal of Economic Literature

Abstract

China's economic reforms have resulted in spectacular growth and poverty reduction. However, China's institutions look ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve the “China puzzle,” this paper analyzes China's institution—a regionally decentralized authoritarian system. The central government has control over personnel, whereas subnational governments run the bulk of the economy; and they initiate, negotiate, implement, divert, and resist reforms, policies, rules, and laws. China's reform trajectories have been shaped by regional decentralization. Spectacular performance on the one hand and grave problems on the other hand are all determined by this governance structure. (JEL O17, O18, O43, P21, P25, P26)

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Metadata

Authors
Xu, C.
Venue
Journal of Economic Literature
Published
2011-12-01
Volume
49
Issue
4
Pages
1076-1151
ISSN
0022-0515 (ISSN-L)
OpenAlex
W2128368240
Cited by
2,623
References
5
FWCI
416.36
Type
journal article
Language
en
Open access
green

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