Law and Economics with Chinese Characteristics: Institutions for Promoting Development in the Twenty-First Century

630 Pages·2013·3.482 MB·English

by  David Kennedy, Joseph E. Stiglitz

LAW AND ECONOMICS
WITH CHINESE CHARACTERISTICS
THE INITIATIVE FOR POLICY
DIALOGUE SERIES
TheInitiativeforPolicyDialogue(IPD)bringstogetherthetopvoicesindevelopmentto
addresssomeofthemostpressingandcontroversialdebatesineconomicpolicytoday.The
IPDbookseriesapproachestopicssuchascapitalmarketliberalization,macroeconomics,
environmentaleconomics,andtradepolicyfromabalancedperspective,presentingalter-
natives, and analyzing their consequences on the basis of the best available research.
Writteninalanguageaccessibletopolicymakersandcivilsociety,thisserieswillrekindle
thedebateoneconomicpolicyandfacilitateamoredemocraticdiscussionofdevelopment
aroundtheworld.
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LawandEconomicswithChineseCharacteristics
EditedbyDavidKennedyandJosephE.Stiglitz
Law and Economics
with Chinese
Characteristics
Institutions for Promoting Development
in the Twenty-First Century
Edited by
DAVID KENNEDY AND JOSEPH E. STIGLITZ
1
3
GreatClarendonStreet,Oxford,OX26DP,
UnitedKingdom
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Contents
ListofFigures vii
ListofTables ix
NotesonContributors x
Introduction 1
DavidKennedyandJosephE.Stiglitz
I. ConceptualFoundations
1. LawandDevelopmentEconomics:TowardaNewAlliance 19
DavidKennedy
2. CreatingtheInstitutionalFoundationsforaMarketEconomy 71
JosephE.Stiglitz
3. AnalyzingLegalFormalityandInformality:Lessonsfrom
theLandTitlingandMicrofinancePrograms 112
AntaraHaldarandJosephE.Stiglitz
II. TowardLawandDevelopmentPolicieswithChineseCharacteristics
Sectionintroduction 149
4. TheEconomicsBehindLawinaMarketEconomy:Alternatives
totheNeoliberalOrthodoxy 153
JosephE.Stiglitz
5. SomeCautionaboutPropertyRightsasaRecipeforEconomic
Development 187
DavidKennedy
6. RuralLandRightsinChina 214
RoyProsterman
7. TheRoleofPropertyRightsinChineseEconomicTransition 236
KennethAyotteandPatrickBolton
8. InstitutionalDesignforChina’sInnovationSystem:Implications
forIntellectualPropertyRights 247
JosephE.Stiglitz
9. TheEvolutionofChina’sIPRSystemanditsImpactonthe
InnovativePerformanceofMNCsandLocalFirmsinChina 278
ZhengLiangandLanXue
10. PropertyandIntellectualPropertyExchanges(PIPEs)inChinasince
the1990s:AnAnalysisoftheEmergenceandRegulatoryResolution
ofPIPEsandTheirComparativeAdvantageOverOTCMarkets 315
HepingCao
vi Contents
11. TheChinaAviationOilEpisode:LawandDevelopmentin
ChinaandSingapore 329
CurtisJ.MilhauptandKatharinaPistor
12. LegalDeterrence:TheFoundationofCorporate
Governance—EvidencefromChina 358
ZhongZhang
13. GenerosityandParticipation:VariationsinUrbanChina’s
MinimumLivelihoodGuaranteePolicy 393
QinGaoandCarlRiskin
14. TheIntergenerationalContentofSocialSpending:Health
CareandSustainableGrowthinChina 423
Jean-PaulFitoussiandFrancescoSaraceno
15. TheHukouReformandUnificationofRural–UrbanSocial
Welfare 441
CaiFang
III. InstitutionalFoundationsfortheChineseMarketEconomy:TheState
Sectionintroduction 455
16. Deregulation,Decentralization,andChina’sGrowthinTransition 467
JustinYifuLin,MingxingLiu,andRanTao
17. FromIndustrializationtoUrbanization:TheSocialConsequences
ofChangingFiscalIncentivesonLocalGovernments’Behavior 491
JamesKai-singKung,ChenggangXu,andFeizhouZhou
18. China’sNetworkJustice 510
BenjaminL.LiebmanandTimWu
19. China’sCourts:RestrictedReform 568
BenjaminL.Liebman
Index 589
List of Figures
1.1. Theories,objectives,instruments,andlaw,1950–70 24
1.2. Ideasandassumptionsaboutlaw,1950–80 41
1.3. Legalideasandassumptions,1980–2000 62
1.4. Anallianceofheterogeneities 68
7.1. Optimalpropertyrights:generalprinciples 243
9.1. TimelineofmajornationalandinternationalIPRlaws
andregulations 281
9.2. ThethreestagesofChina’spatentsystemdevelopment 282
9.3. Distributionsofannualapplicationsforthreekindsofpatentsreceived
bySIPO 285
9.4. Distributionsofannualgrantsforthreekindsofpatents
receivedbySIPO 285
9.5. Totalapplicationsforthreekindsofpatentsreceivedfromhome
andabroad 286
9.6. Distributionofannualapplicationsforinventionsreceived
fromhomeandabroad,1985–2007 287
9.7. Distributionofannualgrantsforinventionsreceivedfrom
homeandabroad,1985–2007 288
9.8. Distributionsofannualapplicationsforthreekindsofpatents
receivedfromabroad 289
9.9. Distributionsofannualapplicationsforthreekindsofpatents
receivedfromhome 289
9.10. Distributionsofannualgrantsforthreekindsofpatents
receivedfromabroad 290
9.11. Comparisonsoftheratiosofdomesticandforeignin-servicepatent
applications 291
9.12. Domesticapplicationsforinventionsaccordingtoin-service
andnonservice,1987–2007 293
9.13. Thesituationofpatentimplementationsofdifferentkindsoffirms 295
9.14. Domesticin-serviceapplicationsforinventionsaccording
tocharacterofapplicants,1987–2007 296
9.15. Domesticin-servicegrantsforinventionsaccordingtocharacter
ofpatentees,1987–2007 296
9.16. Inventionapplicationsofforeignfirms,1985–2004 298
9.17. Inventionapplicationsofdomesticfirmsandforeignfirms,1985–2004 299
9.18. Annualinventionapplicationsoffivecountries,1985–2004 299
10.1. PIPEs-relatedministriesandcommissions 317
10.2. Transactionprocessinatypicalpropertyexchange 326
11.1. CAO’stieswithChinaandSingapore 343
viii ListofFigures
13.1. TotalMLSAexpendituresandnumberofrecipientsinurban
China,1996–2007 398
13.2. Nationwidecityaverageassistancelines(monthlyyuan) 399
13.3. VariationincityMLGassistancelinesbyregioninCHIP2002sample 400
13.4. VariationincityMLGparticipationratebyregionin
CHIP2002sample 401
13.5. CorrelationbetweencityMLGassistancelineandmeanpercapita
income(annualamountinyuan)byregioninCHIP2002sample 402
13.6. CorrelationbetweencityMLGparticipationrateandmeanpercapita
income(annualamountinyuan)byregioninCHIP2002sample 403
13.7. VariationsincityMLGassistancelineandparticipationrateby
regionin35largecitiesin2005 413
13.8. CorrelationbetweencitypercapitaincomeandMLGassistance
linein35largecitiesin2002and2005 414
13.9. CorrelationbetweenlogcitypercapitaincomeandMLG
participationratein35largecitiesin2002and2005 415
14.1. MacroaggregatesaspercentageofChina’sGDP 424
14.2. HouseholdsavingsratesinChina 425
14.3. Shareofprivatespendingandhealthindicators,2009 435
15.1. Usualurbanpopulationvsnonagriculturalhukoupopulation 449
16.1. Centralandlocalrevenue,1982–1992 476
16.2. RevenueasashareofGDP,1982–1992 476
16.3. Centralandlocalrevenue,1993–2005 483
16.4. RevenueasashareofGDP,1993–2005 483
17.1. Centralandlocalgovernments’budgetaryrevenues,1978–2006 497
17.2. Shareofconstructionandreal-estatesectorsinbusinesstax,2001–2004 500
17.3. ProfitsfromlandrevenueinSCounty,ZhejiangProvince,2003
(millionyuan) 501
17.4. Incidenceandmagnitudeoflandconversion,1993–2005 502
17.5. Unauthorizedlandconversion:incidenceandmagnitude,1993–2005 503
19.1. First-instancecases,mediationbyPeople’sMediationsCommittees,
andcourtlettersandvisits,1994–2006 571
19.2. Second-instancecases(appeals),1994–2006 572
List of Tables
8.1. Comparingalternativesystems 259
9.1. Thetotalapplicationsforthreekindsofpatentsreceived
fromhomeandabroad,May1985–December2010 292
9.2. Totalapplications/grants/inforceforthreekindsofpatents
receivedfromhomeandabroad,April1985–December2007 294
9.3. Foreignfirmswithover1,000inventionapplications 300
9.4. Correlationcoefficientsbetweenpatentingandmarketdata
ofelevenindustries 301
9.5. ThreekindsofpatentsownedbyChina’stopten
automobilefirms 303
9.6. Threekindsofpatentsownedbyparentautomobile
companiesinChina 303
9.7. PatentfeesdomesticfirmsneedtopayforeachDVD 305
13.1. OLSregressionresultsoncityMLG(dibao)lineusing
CHIP2002data 405
13.2. Dibaoparticipationratesbyincomegroup,anddistributionofdibao
participantsamongincomegroupsusingCHIP2002data 407
13.3. LogisticregressionresultsonfamilyMLGparticipationstatus
usingCHIP2002data 409
13.4. OLSregressionresultsonnaturallogarithmofcityMLGline
in35largecitiesin2002and2005 416
13.5. OLSregressionresultsoncityMLSAparticipationratein35large
citiesin2002and2005 417
14.1. Selectedhealthindicators,2010 436
15.1. Annualgrowthratesofselectedwages,2003–8(%) 446
15.2. Comparisonofsocialinsuranceprogramsbetween
migrantandlocalworkers(2009,%) 449
19.1. Numberofcases(first-instanceandappeals)closednationwide,
1994–2006 570