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Institutional Change and Economic Transition: Market-Enhancing Governance, Chinese-Style


  • Joachim Ahrens
  • Philipp Mengeringhaus


This study introduces a coherent comparative concept of governance, applies it to China, and elaborates to what extent the Chinese institutional matrix exhibits characteristics of a market-enhancing governance structure (MEGS). It is argued that a subtle interplay of political and economic institutions created a stable and viable politico-institutional foundation which made China's unorthodox transition strategy politically feasible and economically effective. The paper concludes with an assessment of the quality of the overall Chinese governance structure and its expected implications for the future transition process.

Suggested Citation

  • Joachim Ahrens & Philipp Mengeringhaus, 2006. "Institutional Change and Economic Transition: Market-Enhancing Governance, Chinese-Style," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 3(1), pages 75-102, June.
  • Handle: RePEc:liu:liucej:v:3:y:2006:i:1:p:75-102

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    References listed on IDEAS

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    Cited by:

    1. Ahrens, Joachim & Stark, Manuel, 2012. "Unabhängige Organisationen in autoritären Regimes: Widerspruch in sich oder effektives Instrument von Developmental States?," PFH Forschungspapiere/Research Papers 2012/09, PFH Private University of Applied Sciences, Göttingen.
    2. Joachim Ahrens & Patrick Jünemann, 2011. "Adaptive Efficiency and Pragmatic Flexibility: Characteristics of Institutional Change in Capitalism, Chinese-style," Chapters,in: Institutional Variety in East Asia, chapter 2 Edward Elgar Publishing.
    3. Younis, Fizza, 2015. "Institutional Change and Economic Growth in Pakistan," MPRA Paper 72938, University Library of Munich, Germany.
    4. Younis, Fizza, 2015. "Institutional Quality, Foreign Aid and Economic Performance," MPRA Paper 74147, University Library of Munich, Germany.

    More about this item


    market-enhancing governance; transition; institution building; policy reform; China;

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance


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