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Incentives and Corruption in Chinese Economic Reform

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Abstract

This paper argues that, given the legacy of Chinese communism and its political structure, corruption, together with the threat of punishment for corruption and the selective enforcement of this threat, serves as a method of compensation that both satisfies the political objectives of the Communist Party and provides an effective inducement to local officials to promote economic reform.

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Bibliographic Info

Paper provided by Brown University, Department of Economics in its series Working Papers with number 98-8.

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Date of creation: 1998
Date of revision: Sep 1998
Handle: RePEc:bro:econwp:98-8

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Postal: Department of Economics, Brown University, Providence, RI 02912

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  1. Acemoglu, Daron & Zilibotti, Fabrizio, 1999. " Information Accumulation in Development," Journal of Economic Growth, Springer, vol. 4(1), pages 5-38, March.
  2. Acemoglu, D. & Verdier, T., 1996. "Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach," DELTA Working Papers 96-12, DELTA (Ecole normale supérieure).
  3. Olivier Blanchard & Michael Kremer, 1997. "Disorganization," William Davidson Institute Working Papers Series 38, William Davidson Institute at the University of Michigan.
  4. Banerjee, A.V., 1997. "A Theory of Misgovernance," Working papers 97-4, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages S270-S293, December.
  6. Acemoglu, Daron & Zilibotti, Fabrizio, 1997. "Agency costs in the process of development," Seminar Papers 607, Stockholm University, Institute for International Economic Studies.
  7. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-81, August.
  8. Gordon, Roger H & Li, David Daokui, 1997. "Taxes and Government Incentives: Eastern Europe vs. China," CEPR Discussion Papers 1657, C.E.P.R. Discussion Papers.
  9. Chen, Kang & Jefferson, Gary H. & Singh, Inderjit, 1992. "Lessons from China's economic reform," Journal of Comparative Economics, Elsevier, vol. 16(2), pages 201-225, June.
  10. Banerjee, Abhijit V, 1997. "A Theory of Misgovernance," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1289-1332, November.
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Cited by:
  1. Alexandra Reppegather & Manuela Troschke, 2006. "Graduelle Transformation von Wirtschaftsordnungen: Ein Vergleich der Reformstrategien Chinas und Usbekistans," Working Papers 260, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  2. Peter Li, 2009. "The Duality of Crony Corruption in Economic Transition: Toward an Integrated Framework," Journal of Business Ethics, Springer, vol. 85(1), pages 41-55, March.
  3. Xiaobing Wang, 2009. "Regulation and Corruption in Transitional China," The School of Economics Discussion Paper Series 0920, Economics, The University of Manchester.

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