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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. Frijters, Paul & Liu, Amy Y.C. & Meng, Xin, 2012. "Are optimistic expectations keeping the Chinese happy?," Journal of Economic Behavior & Organization, Elsevier, vol. 81(1), pages 159-171.
  2. Campos, Nauro F. & Nugent, Jeffrey B., 2002. "Who is afraid of political instability?," Journal of Development Economics, Elsevier, vol. 67(1), pages 157-172, February.
  3. Knight, John & Ding, Sai, 2012. "China's Remarkable Economic Growth," OUP Catalogue, Oxford University Press, number 9780199698691.
  4. Song, Lina & Appleton, Simon, 2008. "Life Satisfaction in Urban China: Components and Determinants," MPRA Paper 8347, University Library of Munich, Germany.
  5. John Knight & Ramani Gunatilaka, 2009. "Income, Aspirations and the Hedonic Treadmill in a Poor Society," Economics Series Working Papers 468, University of Oxford, Department of Economics.
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