Incentives and Corruption in Chinese Economic Reform

Herschel I. Grossman, Chengze Simon Fan
2001 Social Science Research Network  
This paper argues that, given the legacy of Chinese communism and its political structure, corruption, together with the threat of punishment for corruption and the selective enforcement of this threat, serves as a method of compensation that both satisÞes the political objectives of the Communist Party and provides an effective inducement to local officials to promote economic reform. We thank Minseong Kim and two anonymous referees for helpful comments.
doi:10.2139/ssrn.261701 fatcat:csjytrfdcze4ljovumujybg7ui