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Bounded governance within extended order: The Confucian advantage of synergy under generalized constitutional rules

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  • Dengjian Jin

Abstract

A constitutional explanation of the economic dynamism of the East Asian Confucian economies is proposed. The main hypothesis is that the synergy between the extended order of generalized rules, first introduced by Western civilization, and the bounded governance of Confucian societies has produced a comparative cultural and institutional advantage for the five tigers in East Asia. As a pure form, the extended order, represented in Western society by a system of private property rights, a system of impersonal and generalized markets and a formal-rational system of law and administration, is far more efficient than the bounded governance of Confucian societies in the East Asia, which is characterized by the particularistic human relations and familistic, clannish, and other forms of personal ties and connections. Nevertheless, once a linkage to the extended order is established—overcoming the limits of personal exchange—Confucian ethics can support the bounded governance structures of clans, networks, communities, and familistic corporations that are effective in governing those complex tasks in which property rights are difficult to divide and allocate, individual performance is difficult to measure, and complete contract is either difficult to make or hard to enforce. Copyright Kluwer Academic Publishers 1995

Suggested Citation

  • Dengjian Jin, 1995. "Bounded governance within extended order: The Confucian advantage of synergy under generalized constitutional rules," Constitutional Political Economy, Springer, vol. 6(3), pages 263-279, October.
    • Handle: RePEc:kap:copoec:v:6:y:1995:i:3:p:263-279
    DOI: 10.1007/BF01303406
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    References listed on IDEAS

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    1. Viktor Vanberg & Wolfgang Kerber, 1994. "Institutional competition among jurisdictions: An evolutionary approach," Constitutional Political Economy, Springer, vol. 5(2), pages 193-219, March.
    2. Rhys Jenkins, 1991. "The Political Economy of Industrialization: A Comparison of Latin American and East Asian Newly Industrializing Countries," Development and Change, International Institute of Social Studies, vol. 22(2), pages 197-231, April.
    3. Ouchi, William, 1981. "Theory Z: How American business can meet the Japanese challenge," Business Horizons, Elsevier, vol. 24(6), pages 82-83.
    4. Ottati, Gabi Dei, 1994. "Trust, Interlinking Transactions and Credit in the Industrial District," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(6), pages 529-546, December.
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    Cited by:

    1. D J Jin & R R Stough, 1998. "Learning and Learning Capability in the Fordist and Post-Fordist Age: An Integrative Framework," Environment and Planning A, , vol. 30(7), pages 1255-1278, July.
    2. David Jones, 1997. "Asian Values and the Constitutional Order of Contemporary Singapore," Constitutional Political Economy, Springer, vol. 8(4), pages 283-300, December.

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    More about this item

    Keywords

    D23; D83; L22; P16; O31;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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