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Incentives and corruption in chinese economic reform

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  • Chengze Simon Fan
  • Herschel I. Grossman

Abstract

This paper argues that, given the legacy of Chinese communism and its political structure, corruption, together with the threat of punishment for corruption and the selective enforcement of this threat, serves as a method of compensation that both satisfies the political objectives of the Communist Party and provides an effective inducement to local officials to promote economic reform.

Suggested Citation

  • Chengze Simon Fan & Herschel I. Grossman, 2001. "Incentives and corruption in chinese economic reform," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 4(3), pages 195-206.
    • Handle: RePEc:taf:jpolrf:v:4:y:2001:i:3:p:195-206
    DOI: 10.1080/13841280108523419
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    Cited by:

    1. Peter Li, 2009. "The Duality of Crony Corruption in Economic Transition: Toward an Integrated Framework," Journal of Business Ethics, Springer, vol. 85(1), pages 41-55, March.
    2. Alexandra Reppegather & Manuela Troschke, 2006. "Graduelle Transformation von Wirtschaftsordnungen: Ein Vergleich der Reformstrategien Chinas und Usbekistans," Working Papers 260, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    3. Fung Chan & Biyang Sun, 2018. "The Centralisation of the Chinese Communist Party’s Campaign against Corruption and Its Implications," China Report, , vol. 54(4), pages 403-420, November.
    4. Cumming, Douglas & Ge, Ying, 2022. "Trade facilitation costs and corruption: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 78(C).
    5. Xiaobing Wang, 2009. "Regulation and Corruption in Transitional China," Economics Discussion Paper Series 0920, Economics, The University of Manchester.
    6. Li, Bingqin & Sen, Gong, 2003. "Social inequalities and wage, housing and pension reforms in urban China," LSE Research Online Documents on Economics 21778, London School of Economics and Political Science, LSE Library.
    7. Lein-lein Chen & Melvin Jameson, 2012. "Rents, party cadres and the proliferation of Special Economic Zones in China," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 207-221, September.

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