IDEAS home Printed from
   My bibliography  Save this article

Innovation or Rent-seeking: The Entrepreneurial Behavior during China's Economic Transformation


  • Jinglian Wu
  • Shaoqing Huang


Although achieving impressive economic growth during the economic reform period, China has been plagued by rampant corruption and a widening income gap. How can the coexistence these two phenomena be explained? In this paper, we argue that before 1994, the coexistence was induced by a series of expediential institutional arrangements to stimulate entrepreneurial activities and after 1994, it was entrenched because of the slow progress in the overall reform toward becoming a market economy and because of inappropriate government actions and the lack of government action in institutional building. To solve these problems, economic and political reforms need to be accelerated to improve market institutions and to establish the rule of law. Copyright (c) 2008 The Authors Journal compilation (c) 2008 Institute of World Economics and Politics, Chinese Academy of Social Sciences.

Suggested Citation

  • Jinglian Wu & Shaoqing Huang, 2008. "Innovation or Rent-seeking: The Entrepreneurial Behavior during China's Economic Transformation," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 16(4), pages 64-81.
  • Handle: RePEc:bla:chinae:v:16:y:2008:i:4:p:64-81

    Download full text from publisher

    File URL:
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. Shunfeng Song & George S.-F. Chu & Rongqing Cao, 1999. "Real Estate Tax In Urban China," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 540-551, October.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Son Ngoc Chu & Ligang Song, 2015. "Promoting Private Entrepreneurship for Deepening Market Reform in China: A Resource Allocation Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(1), pages 47-77, January.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:chinae:v:16:y:2008:i:4:p:64-81. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.