The Role of Law and Legal Institutions in Asian Economic Development: the Case of China. Patterns of Change in the Legal System and Socio-Economy

F. Gang and X. Chunying

Working Papers from Harvard - Institute for International Development

Abstract: This essay investigates the relation between legal and economic development in the PRC. It focuses on the period after the introduction of economic reforms in 1978. The political development in the PRC prior to 1978 left little room for legal development outside the realm of politics. In fact, the legal system that had been established in the PRC during the first decade of Communist rule was dismantled during the Anti-Rightist Campaign and subsequently during the Cultural Revolution. When the PRC embarked on an economic reform course it had to re-create a legal system to support non-state activities virtually from scratch. Between 1978 and 1995 the PRC made substantial progress by adopting new laws, including, among others, a civil code, economic contract and corporate law. In addition, institutional change subjected state agents to some legal scrutiny as evidenced by the passage of the administrative procedural code and the corresponding increase in litigation.

Keywords: ECONOMIC DEVELOPMENT; LAW; ASIA (search for similar items in EconPapers)
JEL-codes: K10 K2 K42 O16 O19 (search for similar items in EconPapers)
Pages: 41 pages
Date: 1998
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Citations: View citations in EconPapers (2)

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