This paper examines how social relations and norms contribute to the emergence of generalized trust in economic action. Our core proposition is that the more positive the local social exchange relationship, the greater an actor’s propensity to place trust in strangers. Our research design...

China’s banking sector is dominated by four distinct organizational forms: policy banks (PBs), state-owned commercial banks (SOCBs), joint stock commercial banks (JSCBs), and rural credit cooperatives (RCCs). Economic analyses have especially focused on the development of bank efficiency and...

In this study we use a dataset that provides information on Chinese Communist Party grassroots organizations' political control over decision-making in China's listed firms. Specifically, we examine how different types of shareholders affect (1) the party's level of decision-making power and (2)...

Die Neue Institutionenökonomik stellt ergänzend zur Neoklassik die Kosten von Transaktionen in den Mittelpunkt. Dabei wird das Hauptaugenmerk auf die Institutionen gerichtet, die das menschliche Handeln beeinflussen. Welche Entwicklung nahm die Institutionenökonomik? Wo steht sie heute?

In a recent paper Pedroni and Yao (2006) present strong evidence suggesting that Chinese provincial per-capita output is diverging, a result that goes against the Chinese government's goal of a balanced wealth-creation across provinces. This paper provides an in-depth analysis of the reasoning...

The key objective of this paper is to highlight the interconnectedness between China's political and economic system and its weak enforcement of accounting and auditing standards. The institutional analysis shows that the prevailing political and economic priorities constituting China's...

Recent research on financial market development has focused on the nature of the legal system. The law and finance literature, however, exclusively focuses on the abuse of management power as a major cause of shareholder expropriation. We examine the role of the administrative capability of the...

La présente étude donne une preuve systématique de l'aptitude de l'économie politique à expliquer les solutions nationales du droit de la propriété, indépendamment des pays et des secteurs. Un modèle politico-économique de la privatisation est développé et testé en se servant des...