NDLI: Bribery with Chinese Characteristics? Corruption, Fuzzy Property Rights, and Rapid Growth

Content Provider	Springer Nature Link
Author	Wedeman, Andrew
Copyright Year	2017
Abstract	This paper addresses the question of whether the way bribery is practiced in China is such that corruption might be compatible with rapid economic growth during the boom years between 2000 and 2007. In particular, it examines whether bribery based on diffuse reciprocity transforms a corrupt relationship from one based on short-term egoistic gains (looting) to one based on long-term gains (profit maximizing), with the assumption that such a form of bribery will lead the parties to maximize total gains and hence will encourage long-term growth rather than short-term predatory looting. More broadly, the paper inquires whether a regime of informal property rights based on bribery and diffuse reciprocity might compensate for the shortcomings of an imperfectly constructed and incomplete set of formal property rights such as has emerged in post-Mao China and thereby improve the prospects for economic growth. The paper concludes that while bribery based on diffuse reciprocity may encourage the parties directly involved in such corrupt exchanges to maximize their total long-term gains, so long as bribery remains a private good and an informal property rights regime based on bribery remains subject to abrupt and catastrophic revision due to its illegal nature, “bribery with Chinese characteristics” cannot be characterized as growth enhancing and thus cannot be a major explanation for why the Chinese economy grew rapidly during the “third boom.”
Starting Page	87
Ending Page	111
Page Count	25
File Format	PDF
ISSN	10966838
Journal	East Asia
Volume Number	34
Issue Number	2
e-ISSN	18746284
Language	English
Publisher	Springer Netherlands
Publisher Date	2017-06-16
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	China Corruption Bribery Property rights Rapid growth Political Science Social Sciences
Content Type	Text
Resource Type	Article
Subject	Geography, Planning and Development Political Science and International Relations Development

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
5	Website/Portal (Helpdesk)	Queries regarding NDLI and its services	support@ndl.gov.in
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