Institutional Change and Economic Transition: Market-Enhancing Governance, Chinese-Style
by Joachim Ahrens ; Philipp Mengeringhaus
Start page: 75 - End page: 102
Keywords: market-enhancing governance; transition; institution building; policy reform; China
Jel code: H70; H83; P26; P35
DOI:
Abstract:
This study introduces a coherent comparative concept of governance, applies it to China, and elaborates to what extent the Chinese institutional matrix exhibits characteristics of a market-enhancing governance structure (MEGS). It is argued that a subtle interplay of political and economic institutions created a stable and viable politico-institutional foundation which made China's unorthodox transition strategy politically feasible and economically effective. The paper concludes with an assessment of the quality of the overall Chinese governance structure and its expected implications for the future transition process.
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