Business‐Government Relations in Industrializing Rural China
A principal‐agent perspective
Bibliographic Data
| ID | 12421972 |
|---|---|
| Authors | Charles C L Kwong (corresponding author), Pak K Lee (0000-0002-1592-7277) |
| Year | 2000 |
| Volume | 9 |
| Issue | 25 |
| Pages | 513-534 |
| Publication date | 2000-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Contemporary China (JOURNAL) |
| Journal identifiers | ISSN: 1067-0564 • E-ISSN: 1469-9400 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/713675949 |
| OpenAlex | W2023010559 |
| Language | EN |
| Citations received | 4 |
| References cited | 16 |
This paper explains why rural enterprises prosper in the post-Mao reform era. Based on a case study of Shaanxi province, the paper argues that the institutional arrangements in rural China under economic reforms are conducive to sustained economic growth because the principal‐agent problem is alleviated in two dimensions. First, the interests of local government officials and enterprises overlap. Prompted by the fiscal pressures on local governments as a result of the fiscal reforms, particularly the 1994 tax-assignment reform, local governments are eager to promote local industrial growth. Apart from absorbing rural surplus labour and contributing to the provision of communal welfare to local residents, rural enterprises provide local governments with tax and non-tax revenues to finance their expenditure obligations. In return, local governments provide preferential aid to their enterprises in the form of tax and credit privileges. Second, the principal‐agent problem is abated by a closer effort-and-reward link for the various parties involved in the operation of rural enterprises
Business · China · Economic policy · Economic system · Economics · Government (linguistics · Local government · Market economy · Political science · Principal (computer security · Public economics · Revenue · Rural area · Tax reform · Tax revenue · Welfare · China's Socioeconomic Reforms and Governance · Local Government Finance and Decentralization · Migration, Ethnicity, and Economy · Public Administration · Finance
The New Palgrave
Firms, Contracts, and Financial Structure
Economic Behavior and Institutions
Chinese Township-Village Enterprises as Vaguely Defined Cooperatives
Theory of the firm
The Maoist “Model” Reconsidered
Journal of Contemporary Asia
Growth, Efficiency, and Convergence in China's State and Collective Industry
Local Governments as Industrial Firms
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,25 |
| Citation span | 2010 - 2024 (15) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 4 |