Skip to main content Accessibility help
×
Home
Hostname: page-component-768ffcd9cc-nzrtw Total loading time: 0.321 Render date: 2022-11-30T01:57:47.635Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "displayNetworkTab": true, "displayNetworkMapGraph": false, "useSa": true } hasContentIssue true

11 - The Role of Law in China's Economic Development

Published online by Cambridge University Press:  24 May 2010

Loren Brandt
Affiliation:
University of Toronto
Thomas G. Rawski
Affiliation:
University of Pittsburgh
Get access

Summary

INTRODUCTION

Economic growth requires economic agents to believe that political, social, and economic conditions are such that they can expect a reasonable return from their investments in property and from the agreements they make with others. Where such beliefs exist, they can arise as a result of many different mechanisms. Property owners might view government as constrained by law within a democracy or believe that a particular autocratic government has an interest in not expropriating property. Promisees might have blind trust in their fellow citizens or know that the court system will make appropriate judgments in case of a breach of contract. Therefore, in exploring the determinants of a country's growth performance, it is critical to understand which mechanisms fostered expectations among property owners and among those making agreements.

The emphasis in the recent economics literature, echoed in the pronouncements of the World Bank and similar organizations, is on formal institutions or the rule of law as crucial in fostering the appropriate expectations (Hall and Jones, 1999; Acemoglu, Johnson, and Robinson, 2001;Rodrik, Subramanian, and Trebbi, 2004). Such emphasis follows an important line of thought in institutional economics dating back to Max Weber and carried forth by Douglass North (1990), which we call here the rights hypothesis (Clarke, 2003b). This holds that economic growth requires a legal order offering stable and predictable rights of property and contract.

Type
Chapter
Information
Publisher: Cambridge University Press
Print publication year: 2008

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)
52
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×