Research / BFI Working PaperMay 20, 2019

Special Deals with Chinese Characteristics

Chang-Tai Hsieh, Chong-En Bai, Zheng Michael Song

Chinese local governments wield their enormous political power and administrative capacity to provide “special deals” for favored private firms. We argue that China’s extraordinary economic growth comes from these special deals. Local political leaders do so because they derive personal benefits, either political or monetary, from providing special deals. Competition between local governments limits the predatory effects of special deals.

More Research From These Scholars

BFI Working Paper Nov 7, 2016

The Long Shadow of a Fiscal Expansion

Chong-En Bai, Chang-Tai Hsieh, Zheng Michael Song
Topics:  Uncategorized
BFI Working Paper Apr 15, 2019

A Forensic Examination of China’s National Accounts

Wei Chen, Xilu Chen, Chang-Tai Hsieh, Zheng Michael Song
Topics:  Monetary Policy
White Paper Apr 27, 2020

Post-Lockdown Economic Recovery in China: February and March

Qin Chen, Zhiguo He, Chang-Tai Hsieh, Zheng Michael Song
Topics:  COVID-19