Working Paper: CEPR ID: DP8385
Authors: Debin Ma
Abstract: This article offers a critical review of recent literature on Chinese legal tradition and argues that some subtle but fundamental differences between the Western and Chinese legal traditions are highly relevant to our explanation of the economic divergence in the modern era. This paper seeks to elucidate the fundamental feature of traditional Chinese legal system and the mechanism of dispute resolution within the framework of a disciplinary mode of administrative law within a bureaucratic hierarchy and intermediation within social-networks. By comparing the contrasting development of the legal professions in China and Western Europe, it reveals the importance of political institution, legal regime and the growth of jurisprudence that would ultimately affect property rights, contract enforcement and ultimately long-term growth trajectories.
Keywords: law; jurisprudence; rule of law; adjudication; economic growth; great divergence; common law; disciplinary mode of justice
JEL Codes: N00; O10
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Differences in legal traditions between China and Western Europe (K15) | Economic outcomes (F69) |
| Chinese legal system lacks independent legal profession (K40) | Weaker property rights (P14) |
| Weaker property rights (P14) | Less effective contract enforcement (D86) |
| Less effective contract enforcement (D86) | Hindered long-term economic growth (F69) |
| Chinese legal tradition creates barriers to economic development (O17) | Hindered long-term economic growth (F69) |
| Western legal tradition fosters predictable legal environment (K40) | Capitalism (P10) |