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Federalism, Chinese Style: The Political Basis for Economic Success in China

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  • Weingast, Barry
  • Qian, Yingyi
  • Montinola, Gabriella

Abstract

The remarkable success of China's economic reform is built on a solid political foundation. That success has been made possible by a considerable degree of credible commitment to markets achieved through institutional reforms that we have called "federalism Chinese style." Because these reforms are endowed with a degree of political durability, they provide a significant amount of protection to the market from unwanted political intrusions. Political decentralization, in turn, has provided individuals and local governments with the incentives to pursue economic prosperity.

Suggested Citation

  • Weingast, Barry & Qian, Yingyi & Montinola, Gabriella, 1994. "Federalism, Chinese Style: The Political Basis for Economic Success in China," Institute for Policy Reform Working Paper Series 294844, Institute for Policy Reform.
    • Handle: RePEc:ags:iprwps:294844
    DOI: 10.22004/ag.econ.294844
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    References listed on IDEAS

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    1. Yingyi Qian & Chenggang Xu, 1993. "Why China's economic reforms differ: the M‐form hierarchy and entry/expansion of the non‐state sector," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 1(2), pages 135-170, June.
    2. Bahl, Roy W. & Wallich, Christine, 1992. "Intergovernmental fiscal relations in China," Policy Research Working Paper Series 863, The World Bank.
    3. Qian, Yingyi & Xu, Chenggang, 1993. "Why China's economic reforms differ: the M-form hierarchy and entry/expansion of the non-state sector," LSE Research Online Documents on Economics 121941, London School of Economics and Political Science, LSE Library.
    4. Sicular, T., 1992. "Public Finance and China's Economic Reforms," Harvard Institute of Economic Research Working Papers 1618, Harvard - Institute of Economic Research.
    5. Qian, Yingyi & Xu, Cheng-Gang, 1993. "Why China's economic reforms differ: the m-form hierarchy and entry/expansion of the non-state sector," LSE Research Online Documents on Economics 3755, London School of Economics and Political Science, LSE Library.
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