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portada Demystifying the Chinese Miracle: The Rise and Future of Relational Capitalism
Type
Physical Book
Publisher
Author
Language
English
Pages
144
Format
Paperback
ISBN13
9781138915275
Edition No.
1

Demystifying the Chinese Miracle: The Rise and Future of Relational Capitalism

Yongqin Wang (Author) · Routledge · Paperback

Demystifying the Chinese Miracle: The Rise and Future of Relational Capitalism - Yongqin Wang

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Synopsis "Demystifying the Chinese Miracle: The Rise and Future of Relational Capitalism"

The last three decades has witnessed miraculous economic growth of China. What has accounted for its miracle? What is the nature and future of the Chinese model? Is it unique? This book presents an analytical framework to demystify China's economic growth miracle. The book suggests that interlinked and relational contracts between the agents (in particular, between the state and the business) can compensate for flawed markets to achieve high growth. This kind of relational capitalism is significant in the investment-based stage of development, when mobilization of resources to exploit the existing technologies is key for growth. The book presents a general theory of interlinked relational contract, the workhorse model of the book. The theory highlights that effective governance is a function of market extent and market completeness. The process of economic development and modernization can be looked at fruitfully from two perspectives: the markets and the institutions and their interactions. The book stresses the critical fit between the development stage and the governance for a country's economic transition and development and thus the idea of "appropriate institutions".

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