It has been taken for granted in the literature on the determinants of vertical integration that the effectiveness of contract enforcement is guaranteed, which is far from true even in some developed countries. In this paper, using a World Bank data set of manufacturing firms in China, we...

A government’s state capacity strength has a bearing on not only how much revenue it can extract but also on how it extracts revenues. Based on China’s local economic development experience since the 1990s, we draw on two unique household survey datasets to measure county-level local state...