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Changing Incentives of the Chinese Bureaucracy

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Author Info
David D. Li
Abstract

It has been increasingly recognized that the Chinese goverm-nent's newly acquired enthusiasm for economic development is a major factor explaining the relative success of China's transition from socialism. This paper argues that the changed behavior of the Chinese government is an outcome of a series of reforms of the bureaucracy. The bureaucracy was transformed from inside through a massive mandatory retirement program and a drive for administrative/fiscal decentralization. It was also changed from outside since many bureaucrats can quit government positions and join businesses. China's unique approach to reform bureaucracy without explicit political liberalization is predetermined by its initial conditions of transition.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 130.

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Date of creation: 01 Jan 1998
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Handle: RePEc:wdi:papers:1998-130

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Related research
Keywords: reform of the bureaucracy; bereaucratic behvior; government in transition;

Find related papers by JEL classification:
H10 - Public Economics - - Structure and Scope of Government - - - General
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies

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  1. Lubomir Lizal & Evzen Kocenda, 2000. "Corruption and Anticorruption in the Czech Republic," William Davidson Institute Working Papers Series 345, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  2. EL KAROUNI, Ilyess, 2008. "ORIGINES et consolidation du changement institutionnel : le cas chinois
    [ORIGINS and Strengthening of Institutional Change: the Chinese Case]
    ," MPRA Paper 8714, University Library of Munich, Germany. [Downloadable!]
  3. Alan A. Bevan & Saul Estrin, 2000. "The Determinants of Foreign Direct Investment in Transition Economies," William Davidson Institute Working Papers Series 342, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  4. Maria Csanadi, 2001. "A Model Explaining Social and Political Change of Party-states Structural and Dynamic Background of Similarities and Differences in Reproduction, reforms, Collapse and Transformation," IEHAS Discussion Papers 0101, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
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