IDEAS home Printed from https://ideas.repec.org/a/bpj/maneco/v2y2015i1p45-67n5.html
   My bibliography  Save this article

No Proper Name, No Proper Conduct: Company Affiliation and Product Quality in Wenzhou

Author

Listed:
  • Liao Zhimin

    (International School of Financial Law, East China University of Political Science and Law, 1575 Wanhangdu Rd, Changning, Shanghai, China)

Abstract

This case study demonstrates the far-reaching impact on product quality when private firms were legally recognized and allowed to operate with their own brand names. Previously, when the private firms were forced to affiliate themselves with a governmental organization to get around the entry barrier, they had little incentive to improve the product quality, because too many enterprises were using a same brand name with no effective supervision on each other. Price competition was the only means to survive. This explains the persistent notorious waves of inferior goods through the 1980s to early 1990s. The legalization of private firms in 1992 brought about dramatic improvement in product quality, when the entry barrier against private firms was abolished and private firms began to operate under their own names, and competition through quality improvement began to prevail.

Suggested Citation

  • Liao Zhimin, 2015. "No Proper Name, No Proper Conduct: Company Affiliation and Product Quality in Wenzhou," Man and the Economy, De Gruyter, vol. 2(1), pages 45-67, June.
  • Handle: RePEc:bpj:maneco:v:2:y:2015:i:1:p:45-67:n:5
    DOI: 10.1515/me-2015-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/me-2015-0004
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/me-2015-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Richard A. Posner, 1971. "Taxation by Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 22-50, Spring.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. Zhimin Liao & Xiaofang Chen, 2011. "Why the Entry Regulation of Mobile Phone Manufacturing in China Collapsed: The Impact of Technological Innovation," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 207-228.
    4. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. William C. Mitchell, 1990. "Interest Groups: Economic Perspectives and Contributions," Journal of Theoretical Politics, , vol. 2(1), pages 85-108, January.
    2. Zhimin Liao & Xiaofang Chen, 2011. "Why the Entry Regulation of Mobile Phone Manufacturing in China Collapsed: The Impact of Technological Innovation," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 207-228.
    3. Larry Blank & John Mayo, 2009. "Endogenous Regulatory Constraints and the Emergence of Hybrid Regulation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 35(3), pages 233-255, November.
    4. Manouchehr Mokhtari & Doha Abdelhamid, 2008. "Neocapture: regulatory competition in an open market world," International Economic Journal, Taylor & Francis Journals, vol. 22(1), pages 1-24.
    5. Walter Hettich & Stanley L. Winer, 2006. "Analyzing the Interdependence of Regulation and Taxation," Public Finance Review, , vol. 34(4), pages 355-380, July.
    6. Rachel Geoffroy & Heemin Lee, 2021. "The Role of Academic Research in SEC Rulemaking: Evidence from Business Roundtable v. SEC," Journal of Accounting Research, Wiley Blackwell, vol. 59(2), pages 375-435, May.
    7. Rodrigo M. S. Moita & Claudio Paiva, 2013. "Political Price Cycles in Regulated Industries: Theory and Evidence," American Economic Journal: Economic Policy, American Economic Association, vol. 5(1), pages 94-121, February.
    8. Hahn Robert, 2010. "Designing Smarter Regulation with Improved Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 1(1), pages 1-19, July.
    9. McShane, Michael K. & Cox, Larry A. & Butler, Richard J., 2010. "Regulatory competition and forbearance: Evidence from the life insurance industry," Journal of Banking & Finance, Elsevier, vol. 34(3), pages 522-532, March.
    10. Johannes Urpelainen, 2012. "How do electoral competition and special interests shape the stringency of renewable energy standards?," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(1), pages 23-34, January.
    11. Grant H. Lewis, 2017. "Effects of federal socioeconomic contracting preferences," Small Business Economics, Springer, vol. 49(4), pages 763-783, December.
    12. Deniz Igan & Prachi Mishra & Thierry Tressel, 2012. "A Fistful of Dollars: Lobbying and the Financial Crisis," NBER Macroeconomics Annual, University of Chicago Press, vol. 26(1), pages 195-230.
    13. Robert Gmeiner, 2019. "Regulatory capture in the US petroleum refining industry," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 459-498, December.
    14. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2006. "Bank supervision and corruption in lending," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2131-2163, November.
    15. Roberts, Donna & Orden, David, 1995. "Determinants of Technical Barriers to Trade: The Case of US Phytosanitary Restrictions on Mexican Avocados, 1972-1995," 1995: Understanding Technical Barriers to Agricultural Trade Conference, December 1995, Tucson, Arizona 50709, International Agricultural Trade Research Consortium.
    16. Said-Nour Samake, 2022. "Prudential Regulation and Bank Efficiency : Evidence from WAEMU Zone," Working Papers hal-03540209, HAL.
    17. Randall Holcombe, 2005. "Government growth in the twenty-first century," Public Choice, Springer, vol. 124(1), pages 95-114, July.
    18. David Slattery & Joseph G. Nellis, 2011. "Rethinking the Role of Regulation in the Aftermath of the Global Financial Crisis: The Case of the UK," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(3), pages 407-423, September.
    19. Randall G. Holcombe & Jeffrey A. Mills, 1994. "Is Revenue-Neutral Tax Reform Revenue Neutral?," Public Finance Review, , vol. 22(1), pages 65-85, January.
    20. Ando, Amy, 1998. "Delay on the Path to the Endangered Species List: Do Costs and Benefits Matter," RFF Working Paper Series dp-97-43-rev, Resources for the Future.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:maneco:v:2:y:2015:i:1:p:45-67:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.