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A Model of Institutional Complementarities in Ancient China

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  • Haiwen Zhou

    (Old Dominion University)

Abstract

In ancient China, the county system and feudalism were the possible government organizational forms. Government officials might be selected through recommendations and examinations. The centralization of authority in the hands of emperors was achieved through a group of institutions such as the county system, the Imperial Examination System, and the division of authority among government officials. This paper provides a systematic interpretation of the interrelationship among this group of institutions and studies institutional complementarities in a model. It is shown that an increase in the degree of increasing returns in the military sector will increase the ruler’s incentive to adopt the county system. Institutional complementarities between the adoption of the Imperial Examination System and the division of authority among officials under the county system are established. A decrease in the level of coordination costs of elite increases the ruler’s incentive to choose a higher degree of the division of authority.

Suggested Citation

  • Haiwen Zhou, 2018. "A Model of Institutional Complementarities in Ancient China," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 286-304, April.
    • Handle: RePEc:pal:easeco:v:44:y:2018:i:2:d:10.1057_s41302-016-0082-x
    DOI: 10.1057/s41302-016-0082-x
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    Cited by:

    1. Thomas Barbiero & Haiwen Zhou, 2024. "Culture and Economic Development in Late Comers: Comparing China and India," Chinese Economy, Taylor & Francis Journals, vol. 57(5), pages 379-394, September.
    2. Haiwen Zhou, 2023. "State Capacity and Leadership: Why Did China Take off?," Chinese Economy, Taylor & Francis Journals, vol. 56(1), pages 50-68, January.
    3. Haiwen Zhou, 2021. "Culture, institutions, and long‐run performance," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 372-391, August.
    4. Zhou, Haiwen, 2017. "Will China Avoid the Middle-Income Trap?," MPRA Paper 82688, University Library of Munich, Germany.
    5. Haiwen Zhou, 2024. "National integration and institution building," Pacific Economic Review, Wiley Blackwell, vol. 29(1), pages 26-43, February.
    6. Haiwen Zhou, 2023. "Unification and Division: A Theory of Institutional Choices in Imperial China," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 13-37, May.
    7. Zhou, Haiwen, 2024. "The Reforms of Shang Yang," MPRA Paper 121608, University Library of Munich, Germany.

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    More about this item

    Keywords

    institution; China; centralization of authority; Imperial Examination System; division of authority;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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