Abstract
Chinese investment booms since 1978 have invariably been led by local governments—governments at the provincial, municipality, county, township, and village levels—rather than by the central government. They may invest either directly, for example, in public works or through the enterprises they control. They may also act indirectly—by offering incentives to enterprises outside their jurisdictions or to the private sector.
Shang you zhengce, xia you duice.
[Above there are policies, below there are counterpolicies.]
—Chinese saying
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Notes
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© 2012 Mark A. DeWeaver
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De Weaver, M.A. (2012). Warped Incentives and “Second-Best” Efficiency. In: Animal Spirits with Chinese Characteristics. Palgrave Macmillan, New York. https://doi.org/10.1057/9781137110121_5
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DOI: https://doi.org/10.1057/9781137110121_5
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