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A Model of Institutional Complementarities in Ancient China

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  • Haiwen Zhou

    (Old Dominion University)

Abstract

In ancient China, the county system and feudalism were the possible government organizational forms. Government officials might be selected through recommendations and examinations. The centralization of authority in the hands of emperors was achieved through a group of institutions such as the county system, the Imperial Examination System, and the division of authority among government officials. This paper provides a systematic interpretation of the interrelationship among this group of institutions and studies institutional complementarities in a model. It is shown that an increase in the degree of increasing returns in the military sector will increase the ruler’s incentive to adopt the county system. Institutional complementarities between the adoption of the Imperial Examination System and the division of authority among officials under the county system are established. A decrease in the level of coordination costs of elite increases the ruler’s incentive to choose a higher degree of the division of authority.

Suggested Citation

  • Haiwen Zhou, 2018. "A Model of Institutional Complementarities in Ancient China," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 44(2), pages 286-304, April.
    • Handle: RePEc:pal:easeco:v:44:y:2018:i:2:d:10.1057_s41302-016-0082-x
    DOI: 10.1057/s41302-016-0082-x
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    References listed on IDEAS

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    1. Haiwen Zhou, 2011. "Confucianism and the Legalism: A model of the national strategy of governance in ancient China," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(4), pages 616-637, December.
    2. Loren Brandt & Debin Ma & Thomas G. Rawski, 2014. "From Divergence to Convergence: Reevaluating the History behind China's Economic Boom," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 45-123, March.
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    6. G. M. Grossman & K. Rogoff (ed.), 1995. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 3, number 3.
    7. Haiwen Zhou, 2009. "Population Growth And Industrialization," Economic Inquiry, Western Economic Association International, vol. 47(2), pages 249-265, April.
    8. Carol H. Shiue, 2002. "Transport Costs and the Geography of Arbitrage in Eighteenth-Century China," American Economic Review, American Economic Association, vol. 92(5), pages 1406-1419, December.
    9. Brander, James A., 1995. "Strategic trade policy," Handbook of International Economics, in: G. M. Grossman & K. Rogoff (ed.), Handbook of International Economics, edition 1, volume 3, chapter 27, pages 1395-1455, Elsevier.
    10. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    11. Haiwen Zhou, 2012. "Internal Rebellions and External Threats: A Model of Government Organizational Forms in Ancient China," Southern Economic Journal, John Wiley & Sons, vol. 78(4), pages 1120-1141, April.
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    Cited by:

    1. Haiwen Zhou, 2021. "Culture, institutions, and long‐run performance," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 372-391, August.
    2. Zhou, Haiwen, 2017. "Will China Avoid the Middle-Income Trap?," MPRA Paper 82688, University Library of Munich, Germany.
    3. Haiwen Zhou, 2024. "National integration and institution building," Pacific Economic Review, Wiley Blackwell, vol. 29(1), pages 26-43, February.
    4. Haiwen Zhou, 2023. "Unification and Division: A Theory of Institutional Choices in Imperial China," Annals of Economics and Finance, Society for AEF, vol. 24(1), pages 13-37, May.
    5. Haiwen Zhou, 2023. "State Capacity and Leadership: Why Did China Take off?," Chinese Economy, Taylor & Francis Journals, vol. 56(1), pages 50-68, January.
    6. Thomas Barbiero & Haiwen Zhou, 2024. "Culture and Economic Development in Late Comers: Comparing China and India," Chinese Economy, Taylor & Francis Journals, vol. 57(5), pages 379-394, September.
    7. Haiwen Zhou, 2024. "The Reforms of Shang Yang," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 180(4), pages 626-647.

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    More about this item

    Keywords

    institution; China; centralization of authority; Imperial Examination System; division of authority;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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