Working Paper: CEPR ID: DP10320
Authors: Chenggang Xu
Abstract: China was the largest economy in the world before the end of the 19th century; then became one of the poorest countries in the world in a few decades. Now China is returning to its historical past. To understand China?s development, and to understand where and how far China will move forward, this paper examines how its institution functioning.
Keywords: China; Development; Institution; Political Economy
JEL Codes: A10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| concentration of privately-owned firms in certain counties (R30) | higher growth rates (O49) |
| state-owned firms in China (L32) | less efficient than private counterparts (H49) |
| institutional barriers (D02) | reduced overall economic efficiency (D61) |
| historical institutional failures (B15) | contribution to economic stagnation (F62) |
| absence of reforms to institutions (O17) | hindered sustainable growth (O44) |