Institutions and Chinese Economic Development: A Comparative Historical Approach

Description

China’s rise as an economic power has posed some challenging questions: how did China achieve GDP growth that was even faster than the Asian Tigers? Is the "Chinese model" superior? Why hasn’t the rapid economic growth lead to democracy in the country as many observers expected? And can China sustain its rapid economic growth with its existing social system? Institutions and Chinese Economic Development: A Comparative Historical Approach explores these questions by studying the historical relationship between institutions and economic development in China, drawing comparisons with England, Japan and other Asian economies as appropriate. The investigation focuses on several junctures in China’s economic development: the starting point of the divergence between China and the West; the externally-provoked industrial development in the late nineteenth century; and the contemporary Chinese Miracle. The analysis foregrounds the role played by Chinese institutions and examines their effects on both the country’s failure to industrialize in the past and its economic achievements in recent time. The book also asks whether, without reform to the existing state institutions, China might still be subject to the historical dynastic cycles today, despite its recent economic success. This work is of great interest to students and scholars of the Chinese economy, economic history and institutional economics, as well as comparative history and Chinese studies more broadly. Cover Half Title Series Information Title Page Copyright Page Table of Contents Preface 1 Introduction Interpreting the Chinese Miracle The Analytical Framework Theoretical Ground and Related Literature Focus On the Core Institutions Comparison of Institutional Paths Importance of International Settings Notes Bibliography 2 Core Institutions in China and England Before the Industrial Revolution Core Institutions as the Ultimate Cause of the Divergence England in the 18th Century China in the 18th Century The Evolution of the Core Institutions in Pre-1750 England Initial Setup and Early Developments Incentive Mechanism and Subsequent Developments The Evolution of the Core Institutions in Pre-1750 China Initial Setups and Early Developments Incentive Mechanism and Subsequent Developments Notes Bibliography 3 Core Institutions and the First Industrial Revolution The Industrial Revolution in Britain Expansion of the “Useful Knowledge” The Agents of the Industrial Revolution Patent Rights for Individuals Lack of Techno-Economic Breakthrough in Pre-1750 China A Narrow Knowledge Base The Missing “New Men” Upward Mobility Verses Legal Rights Notes Bibliography 4 The Chinese and Japanese States in the 19th Century The Role of the State for Latecomers’ Economic Catch-Up The State’s Additional Role in the New International Settings The Quality of the State Comparing the Chinese and Japanese States in the 19th Century The Chinese State Institutions and the Dynastic Cycles Lack of Autonomy True Autocracy and the Emperor’s Personal Rule The Incentive Mechanism Embedded in the State Institutions The Dynastic Cycles The Development of the Japanese State Institutions “Pseudo Autocracy” and Reliance On Written Rules Complete Autonomy The Incentive Mechanism Embedded in the State Institutions Notes Bibliography 5 Externally-Induced Industrial Developments in Qing China and Meiji Japan The Success of Industrialization in Meiji Japan A State With Developmental Capability Domestic Source for Capital Formation Central Coordination and Self-Reliance Government-business Relationship: Separable Entities The Role of State Enterprises Government Assistance for Private Companies The Failure of Industrialization in Late Qing China A State in Frailty Loss of Central Control Over Capital Supply Uncoordinated Programs and Foreign Dependency The Government–business Relationship: Fusion of Roles Personalized Channels for Sponsoring Modern Enterprises The Emergence of Official Entrepreneurs Institutional Changes in Meiji Japan and Late Qing China Meiji Japan: Moving Towards Pluralistic Institutions Late Qing China: Persistence of Absolutism Notes Bibliography 6 The Chinese Miracle: Economic Growth in Contemporary China Strong State Leadership for Economic Modernization A State in a Cyclical Upswing Central Coordination The Open-Door Policy State Enterprises and Local Governments as Major Players Improvements in Economic Liberty Re-establishment of Private Ownership Short Falls in Property-Rights Development Favorable External Conditions Two External Factors: Technologies and Globalization Meiji Japan, the Asian Tigers and Contemporary China Notes Bibliography 7 Prospects of the Chinese Economic Development The Differences in the State-Led Developments State Institutions at the Root of the Differences South Korea and Taiwan Contemporary China State Autonomy Matters Sustainable Growth in Doubt Institutional Changes and the Dynastic Cycles The Tenacity of the Chinese Core Institution Reforming the State Institutions Notes Bibliography Index