Special Deals with Chinese Characteristics
49 Pages Posted: 22 May 2019 Last revised: 6 Feb 2023
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Special Deals with Chinese Characteristics
University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2019-74
Number of pages: 50
Posted: 21 May 2019
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200
Date Written: May 2019
Abstract
Chinese local governments wield their enormous political power and administrative capacity to provide “special deals” for favored private firms. We argue that China’s extraordinary economic growth comes from these special deals. Local political leaders do so because they derive personal benefits, either political or monetary, from providing special deals. Competition between local governments limits the predatory effects of special deals.
Suggested Citation: Suggested Citation
Bai, Chong-En and Hsieh, Chang-Tai and Song, Zheng (Michael), Special Deals with Chinese Characteristics (May 2019). NBER Working Paper No. w25839, Available at SSRN: https://ssrn.com/abstract=3390987
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