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Fly‐By‐Night Builders In Harbin And Shanghai

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  • Rita Yi Man Li

Abstract

This paper examines residential property development in the Chinese cities of Harbin and Shanghai in 2001–07. It reveals that development firms generally only built one residential development during the study period, which contrasts with the situation in most developed countries, where large, established firms engage in numerous projects. This finding appears to contradict theories on economies of scale, brand names and reputation. It is argued that institutional failure may be largely responsible for the business practices observed.

Suggested Citation

  • Rita Yi Man Li, 2009. "Fly‐By‐Night Builders In Harbin And Shanghai," Economic Affairs, Wiley Blackwell, vol. 29(4), pages 66-71, December.
    • Handle: RePEc:bla:ecaffa:v:29:y:2009:i:4:p:66-71
    DOI: 10.1111/j.1468-0270.2009.01949.x
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    References listed on IDEAS

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    1. Pargal, Sheoli & Wheeler, David, 1996. "Informal Regulation of Industrial Pollution in Developing Countries: Evidence from Indonesia," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1314-1327, December.
    2. Francis M. Bator, 1958. "The Anatomy of Market Failure," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 72(3), pages 351-379.
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