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Corruption and China's Economic Reform in the Early 21st Century

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  • Gregory C. Chow

    (Princeton University)

Abstract

Past economic reform of the state sector in China consisted mainly of privatization, of agriculture and of small and medium-size state enterprises, leaving large state enterprises in the control of the state. Current reform consists of making state-owned enterprises and banks more efficient and functioning like private enterprises, and gradual privatization of some large state enterprises. Bureaucrats managing state assets and the selling of assets take advantage of such power to benefit themselves, including embezzlement of public funds and taking bribes from citizens needing their help, as can be found in state enterprises, state-owned commercial banks and in government projects. Reducing the size of the government sector is a basic solution to the corruption problem in China while attention should be paid in the privatization process which can involve corruption.

Suggested Citation

  • Gregory C. Chow, 2005. "Corruption and China's Economic Reform in the Early 21st Century," Working Papers 86, Princeton University, Department of Economics, Center for Economic Policy Studies..
    • Handle: RePEc:pri:cepsud:116
    as

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    File URL: https://gceps.princeton.edu/wp-content/uploads/2017/01/116chow.pdf
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    References listed on IDEAS

    as
    1. Chow, Gregory C, 1989. "Rational versus Adaptive Expectations in Present Value Models," The Review of Economics and Statistics, MIT Press, vol. 71(3), pages 376-384, August.
    2. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    3. Gregory Chow & Yan Shen, 2004. "Money, Price Level and Output in the Chinese Macro Economy," Working Papers 104, Princeton University, Department of Economics, Center for Economic Policy Studies..
    4. Gregory Chow & Yan Shen, 2004. "Money, Price Level and Output in the Chinese Macro Economy," Working Papers 104, Princeton University, Department of Economics, Center for Economic Policy Studies..
    5. repec:pri:cepsud:98chow is not listed on IDEAS
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    More about this item

    Keywords

    China; SOE; state owned enterprise;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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