Special Deals with Chinese Characteristics
Chapter in NBER book NBER Macroeconomics Annual 2019, volume 34 (2020), Martin S. Eichenbaum, Erik Hurst, and Jonathan A. Parker, editors (p. 341 - 379)
Chinese local governments wield their enormous political power and administrative capacity to provide “special deals” for favored private firms. We argue that China’s extraordinary economic growth comes from these special deals. Local political leaders do so because they derive personal benefits, either political or monetary, from providing special deals. Competition between local governments limits the predatory effects of special deals.This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
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Document Object Identifier (DOI): 10.1086/707189This chapter first appeared as NBER working paper w25839, Special Deals with Chinese Characteristics, Chong-En Bai, Chang-Tai Hsieh, Zheng Michael Song
Commentary on this chapter:
Comment, Maurice Obstfeld
Comment, Antoinette Schoar