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The Economic Causes and Consequences of Social Instability in China

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  • John Knight

Abstract

Social instability is a concept that economists rarely analyse, and yet it can lurk behind much economic policy-making.� China’s leadership has often publicly expressed its concerns to avoid ‘social instability’.� It is viewed as a threat both to the political order and to the continued rapid growth of the economy.� This threat to growth in turn endangers the maintenance of social stability.� This paper examines the likely economic determinants of social instability, using both surveys and other evidence.� After explaining the determinants of China’s rapid growth, the paper goes on to examine the likely mechanisms by which social instability can affect the growth rate.� There is a case for more research on the role of social instability in the economic development process.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 619.

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Date of creation: 03 Sep 2012
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Handle: RePEc:oxf:wpaper:619

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Keywords: China; Civil unrest; Corruption; Developmental state; Economic growth; Governance; Happiness; Inequality; Social instability;

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  1. Rabin, Matthew, 1997. "Psychology and Economics," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt8jd5z5j2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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  16. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 110(3), pages 681-712, August.
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Cited by:
  1. Bartolini, Stefano & Sarracino, Francesco, 2014. "The dark side of Chinese growth: Explaining decreasing well-being in times of economic boom," MPRA Paper 57765, University Library of Munich, Germany.

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