 The Role of Governments in China’s Developing Economy: A Public Economic Analysis of the Chinese ModelBingtao Song Chapter 2 in The New Chinese Economy, 2012, pp 27-49 from Palgrave Macmillan Abstract: Abstract In traditional development economics, which is based on neoclassic economic growth theory, the role of governments in the economy has long been believed to be negative. However, the role of governments is still often mentioned in development economics, especially in the recent discussion on the Chinese model or the East Asian model, which is quite different from the Western one. In this chapter, by establishing a new economic development model, which not only includes the technical progress, capital, labor, and the entrepreneurs’ contributions, but also includes the institutional change of state, we show that governments play an important role in economic development. We will also try to analyze the catching-up strategy employed by China, from the perspective of public economics. That is, by copying the structure of public goods in the West, the governments of China and East Asian economies provided a suitable condition to the market economic development, even if there is no negotiation mechanism between the government and economic entities. Keywords: Economic Development; Public Good; Market Economy; Institutional Change; Public Economy (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-01204-3_2 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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