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Economic Causes and Cures of Social Instability in China

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  • John Knight

Abstract

China's leaders have often expressed concerns about social instability, viewed as a threat both to the political order and to continued rapid growth. Slower growth might, in turn, further undermine social stability. Using survey data, the present paper examines the economic determinants of social instability. Four main determinants are identified: past and expected growth of income, income inequality, economic insecurity and misgovernance. The paper then considers possible policies to reduce social instability, examining each of the determinants in turn.

Suggested Citation

  • John Knight, 2014. "Economic Causes and Cures of Social Instability in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 22(2), pages 5-21, March.
  • Handle: RePEc:bla:chinae:v:22:y:2014:i:2:p:5-21
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    File URL: http://hdl.handle.net/10.1111/j.1749-124X.2014.12059.x
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    References listed on IDEAS

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    1. William Easterly & Jozef Ritzen & Michael Woolcock, 2006. "Social Cohesion, Institutions, And Growth," Economics and Politics, Wiley Blackwell, vol. 18(2), pages 103-120, July.
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    8. Hirschman, Albert O., 1973. "The changing tolerance for income inequality in the course of economic development," World Development, Elsevier, vol. 1(12), pages 29-36, December.
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