Is Chinese Variety of Capitalism Really Unique?
The formal comparison of similarities and differences of Chinese and Western economic models misses the most important point. The uniqueness of China is that it looks very much like a developed country today in terms of institutional capacity of the state, even though it is a developing country according to GDP per capita. Indeed, China should be compared with developing countries today or developed countries a hundred years ago, when their GDP was at the current Chinese level, and this comparison is very much in favour of China. Institutional capacity of the state, according to a narrow definition, is the ability of the government to enforce laws and regulations. While there are a lot of subjective indices (corruption, rule of law, government effectiveness, etc.) that are supposed to measure state institutional capacity, many researchers do not think they help to explain economic performance and instead consider them biased. The natural objective measures of state institutional capacity are the murder rate (noncompliance with the state’s monopoly on violence4) and the shadow economy (non-compliance with the economic regulations). China is rather unique on both measures – one of the lowest indicators in the developing world comparable to developed countries.
|Date of creation:||Jan 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +7 (495) 105 50 02
Fax: +7 (495) 105 50 03
Web page: http://www.cefir.ruEmail:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vladimir Popov, 2006. "Shock Therapy Versus Gradualism Reconsidered: Lessons From Transition Economies After 15 Years Of Reforms," Working Papers w0068, Center for Economic and Financial Research (CEFIR).
When requesting a correction, please mention this item's handle: RePEc:cfr:cefirw:w0156. 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: (Julia Babich)
If references are entirely missing, you can add them using this form.