In the twenty years since the Cultural Revolution, China has maintained fast real growth. This occurred despite China having similar problems to other transitional economies, eg loss-making State Owned Enterprises (SOEs), eroding fiscal revenues and inflation, (Section 3). Although China...

Because of the "too-early-to know" feature of innovation, the promotion of innovation in a given system critically depends on the screening mechanisms which terminate inefficient projects. Information imperfection together with sunk costs may cause commitment problems which relax financial...

China's thirteen years of reforms (1979-1991) have achieved an average GNP annual growth rate of 8.6%. What makes China's reforms from those of Eastern Europe and the Soviet Union is the sustained entry and expansion of the non-state sector. We argue that the organization structure of the...

In this paper I first present evidence to show that there is a labor shortage problem caused by insufficient rural-urban migration in Chinese urban/sub-urban areas. Moreover, people in poor rural areas migrate less than people in rich rural areas to cities. These phenomena cannot be explained by...

We model organization as the command-and-communication network of managers erected on top of technology (which is modeled as a collection of plants). In our framework, the role of a manager is to deal with shocks that affect the plants that he oversees directly or indirectly. Organizational form...

This paper concerns the paradoxes and dilemmas that the very successful "Chinese model" presents for transition theory. The "Chinese model" is centered on the development of township-village enterprises. The main purpose of this paper is to make the case that TVE's are not just some form of...