Federalism With and Without Political Centralization: China Versus Russia
AbstractIn China, local governments have actively contributed to the growth of new firms. In Russia, local governments have typically stood in the way, be it through taxation, regulation, or corruption. We argue that the difference can be traced to lies in the degree of political centralization present in China, but not in Russia. In China the central government has been strong and disciplined enough to induce local governments to favor growth. In Russia, it has not. We agree, but with an important caveat. We believe the experience of Russia indicates that another ingredient is crucial, namely political centralization. Copyright 2002, International Monetary Fund
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal IMF Staff Papers.
Volume (Year): 48 (2001)
Issue (Month): 4 ()
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Other versions of this item:
- Olivier Blanchard & Andrei Shleifer, 2000. "Federalism With and Without Political Centralization. China versus Russia," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1889, Harvard - Institute of Economic Research.
- Olivier Blanchard & Andrei Shleifer, 2000. "Federalism with and without Political Centralization: China versus Russia," NBER Working Papers 7616, National Bureau of Economic Research, Inc.
- P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
- P50 - Economic Systems - - Comparative Economic Systems - - - General
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