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Lingnan UniversityDigital Commons @ Lingnan UniversityCentre for Public Policy Studies : CPPS WorkingPaper Series
Centre for Public Policy Studies 公共政策研究中
心
6-2000
Incentives and corruption in Chinese economicreformChengze, Simon FANLingnan University, Hong Kong, fansimon@ln.edu.hk
Herschel I. GrossmanBrown University, USA
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Recommended CitationFan, C. S., & Grossman, H. I. (2000). Incentives and corruption in Chinese economic reform (CPPS Working Papers Series no.103).Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/111
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No. 103 (6/00) CPPS
INCENTIVES AND CORRUPTION IN CHINESE ECONOMIC REFORM
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Dr. Chengze Simon Fan and Professor Herschel I. Grossman
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lncentives and Corruption in Chinese Economic Reform
Dr. Chengze Simon Fan and Professor Herschel I. Grossman
June 2000
。 Chengze Simon Fan and Herschel 1. Grossman
Dr. Chengze Simon Fan is Assistant Professor of Department of
Economics, Lingnan University, Hong Kong.
Professor Herschel 1. Grossman is Professor of Economics , Department
of Economics, Brown University, USA.
Centre for Public Policy Studies
Lingnan University
Tuen Mun
Hong Kong
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author. Please address comments and suggestions to the author.
Incentives and Corruption in Chinese Economic Reform
C h e n gze Simon Fan
Lingnan University
H e r sch e l 1. Grossman
Brown University
Abstnαct
This Pαper α可ues th叫 , given th e l egα cy of Chiηese communzsm αηd its political structure , co付uption, together with the threαt of punishment for co付uptwn αnd th e selec tive enforcement of this threαt , serves αsα method of compensαtion thαt both sαtisfies th e political obj ectives of the Communist Pαrty αnd provides αn effective inducement to locα1 officials to promote economic reform
KeY\'lords: Incentives , Corruption , Economic Reform , China , Communist Party JEL Classifìcation Numbers: D78 , P21
1月le thank Minseong Kim and two anonymous referees for helpful comments
Many observers have suggested that a large part of the success of the Chinese economic
reform is attributable to the transformation of the typical local government official from
being an unproductive political entrepreneur prior to reform to being a productive economic
entrepreneur after reform. As Weiyi時 Zhang and Gang Yi (1996) point out ,
Many reform programs have been initiated by locals and even by the grass-roots ,
and then recognized and adopted as national policies by the central government
Much of the planning system was dismantled by locals. Many locals have been
far ahead of their national leaders in reforming the economy.
Emphasiz呵 the initiatives of local officials , Kang Chen , G. Jefferson , and 1. Singh (1992)
characterize economic reform in China as being both a top-to-bottom and a bottom-to-top
process
At the same time , and apparently paradoxically, both Chinese and foreign observers re
port that economic reform in China has been associated with an epidemic of corruption
among local government 0侃CJ悶als. Melan凹 Manion (1997 , page 34) observes that "of the
54 countries ranked by the Berlin-based public interest organization , Transparency Interna
tional , according to the prevalence of corruption in 1996 , China ranked 50th: corruption was
judged more pervasive only in Bangladesh , Kenya , Pakistan , and Nigeria ."
Taken together these observations are puzzling. How can pervasively corrupt local of
ficials be the key to the success of economic reform? Furthermore, why do the Chinese
authorities tolerate widespread corruption among those agents whose performance is essen
tial to economic reform?
This paper attempts to answer these questions. We first elaborate on why the actions of
local officials have been critical in China's economic transition. Then we explore how local
officials have been motivated to promote economic reform and why the Chinese authorities
are willing to live with this way of motivating local 0伍cials. Our analysis wiU develop
the following hypothesis: Becαuse of the legαcy of σ12nese comr月untsm αnd its politicαl
structure, cor門tp tion , together 凹的 lhe lhr -eal of punishment for corrupliοηαnd the selec live
en.f.ο rcement of this threat, serves αsα method of compensαtion thαt both satisfies the politicαJ
objectives of the Communist Party αnd provides αn ejJective inducement to locα l officials to
promote economic reform
In arguing that selective toleration of corruption “works'\ we a re not claiming ei ther that
all of the widespread corruption that we observe in China is instrumenta l or that corruption is
not to some extent incidental , in the sense of being a concomitant of economic reform that is
beyond the power of the authorities to prevent without incurring large costs . We also are not
claiming that selective toleration of corruption is an optimal method of compensation , eithel
from the perspective of the Chinese authorit ies of from the perspective of the average Chinese
person . But , we are claiming that , whether the adopt ion of the policy of selective toleration
of corrup t ion was active or passive , there a re good reasons for the Chinese authorities to live
wi th this policy.l
The idea t hat corruption can facili tate economic development is not new. 2 But , a lthough
t he literature discusses various positive effects of tolerating corruption , it does not a ddress
the question of why the authorities li ve wit h a policy of selectively tolerating corruptio丸
when feasible alternatives presumably exist. Writing about contemporary China , Howard
Davies (1 995 , page 165) points out that “oppo山川ies for corruption arise to a very great
extent because of t he administrative controls which st ill remain in the Chinese economy and
because the government of t he PRC has not yet established m echanisms for preventing the
abuse of these controls". Still , the question remains of why the Chinese authorities have not
lIn contrast to some literature - 5前, for example, Abhijit Banerjee ( 1997) 一 our analysis does not
assume that the authoriti臼 have limited ability to punish corruption . We rationali ze tolerance of corruption
without assuming that the authoriti郎, by imposing sufficiently severe penalties on enough corrupt local
officials, could not eliminate all or most corruption
2Samuel Hunti時don (1968) is a classic reference. Francis Lui (1985) provid臼 an example of a formal
model of the benefits from corruption
2
eliminuted the conditions that breed corruption among local officials
The Dual-Track Economy and the Role of Local Officials
Although recognition of the e伍ciency of a market economy relative to central planning
was an important motivation for the initiation of economic reform in China , the Chinese
have not as yet completely eliminated central planning as a coordination mechanism for
production and exchange. Instead , China has adopted a dual-track economy (Shuα句 Gui
Zhi) , which involves the coexistence of central planning with a market mechanism for the
allocation of resources. Olivier Blanchard and Michael Kremer (1997) argue convinci時ly
that the dual-track economy, preserving elements of central planning, has helped China
to maintain economic growth during the transition to a market economy. Blanchard and
Kremer sharply contrast China 's smooth transition to the “disorganization" and associated
collapse of production during the transition to a market economy in the states of the former
Soviet Union. Lawrence Lau , Yi時yi Qian , and Gérard Roland (2000) argue further that
the dual-track economy has provided a way to compensate potential losers from economic
reform in China
A criti callegacy of central planning in China , which remains important in the dual-track
economy, is Guanxi arrangements , whereby "personal connections刊 among government of-
ficials and firm managers control the allocation of resources. Under Guanxi firm managers
have to maintain good relations with relevant government 0伍cials and managers of other
firms to ensure the provision of supporting resources (e.g. electricity, water , etc.) and the
timely delivery of necessary raw materials and intermediate goods. Davies (1995) describes
how Guαnxi has evolved in China as a response , rooted in Chinese culture, to an underde-
veloped system of property rights and contract law
In this environment the transformation of local 0伍cials from unproductive political en
trepreneurs to productive economic entrepreneurs has been critical to the success of Chinese
economic reform for two apparent reasons: First , because government 。但cials had the high-
3
est social and economic status prior to reform , they are likely to include some of the most
talented people in China. Second, in the dual-track economy, especially with the contin
ued impo1'tance of Guαnxi , local officials continue to play an critical 1'ole in coordinating
production and exchange
In post-refo1'm China local 0伍cials are often de facto managers. Fo1' example , Jean Oi
(1995 , 1998) thinks the role of local officials in the economy is so important that she terms
China 's current political-economic system "local state corporatism刊﹒ As Oi observes (1995 ,
page 1132) ,
The state responsible fo 1' much of this growth is locα1 governments that t 1'eat
enterprises within their administrative purview as one component of a large cor
porate whole . Local officials act as the equivalent of a board of directors and
sometimes more directly as the chief executive officers
In anothe 1' p1'ovocative study entitled "Local Governments as Indust1'ial Firms ," Andrew
Walder (1995) argues that local officials in China 's dual-track economy and corpo叫e hier
archies in a market economy play similar roles in coo1'dinating production and exchange
Oi claims further that , in response to the new incentives associated with Chinese economic
reform , local 。而cials not only imp1'oved thei 1' e伍ciency in coordinating production and
exchange , but they also began actively to play some new roles. 3 According to Oi (1995 ,
pages 1139-1140) ,
Within a local corporatist context local officials turn the administrative bureau
cracy - of which they are part 一 into a free channel for information and re
sources to facilitate market production ... Using information and contacts that
they develop beyond the locality through their routine conduct of administra
tive work , local officials can provide an array of essential services to their local
3For other relevant studies of enterprise management in China, see Andrew Walder (1 998) , Jane Duckett
(1996) , and David Li (1996)
4
enterprises. This might include raw materials , but increasingly, it has become im
portant for information about new products , technology and markets for fìnished
goods .. .Iρcal CadleS use their expansive connections and bureaucratic position
to secure information that wiU serve local economic growth
What is Corruption?
It is important to be clear about how we are defìning corruption. On our defìnition cor
ruption is , in the words of Melanie Manion (1997) ,“the use of public office to pursue private
gain in ways that violate laws and other formal rules. 刊 We use this legalistic defìnition for
three reasons: First , this defìnition accords with everyday language. Second, this defìnition
is used in in the compilation of data and is implicit in quantitative observations about the
amount of corruption . Third , and most importantly, this defìnition does not prejudge the
economic consequences of corruption
Instead of our legalistic defìnition many authors implicitly adopt an economic defìnition
that equates corruption with purely unproductive rent-seeking activity.4 By abstracting from
the positive incentive effects that we emphasize , these authors presuppose that corruption
has only a negative effect on economic performance. In contrast , without denying that some
of the corruption that we observe iri China involves unproductive rent seeking, we want to
allow for the possibility that corruption also includes practices that enhance productivity
Our legalistic defìnition of corruption , which accords with everyday speech and with measures
of corruption , does not preclude the conclusion that tolerance of corruption can promote
economic reform and improved economic performance
Manion (1997) associates corruption in China with two general practices: One practice
involves local officials who exploit their positions to extract bribes or to arrange nepotisti c
favors . This practice is often referred to as tαnwu shouhui in Chinese. The other practice
4S間 , for example, Dan Usher (1 992) , Andrei Shleifer and Robert Vish叮 (1993) , and Isaac Ehrlich and
Francis Lui (1999)
5
involves local officials who misappropriate public property or public funds for personal ben
efit. Examples include the use of public property or public funds to obtain lavish housing
and fancy cars or to travel abroad. This practice is often referred to as nuoyong goηgkuαn
in Chinese
Corruption as a Method of Compensation
What has motivated local 0伍cials to become efficient economic entrepreneurs? More
completely, what have been the incentives for local 。而cials to promote economic reform ,
and what has been the system of rewards and punishments through which these incentives
have been implemented?
Some recent literature argues out that a positive relation between the economic perfor
mance of a region and local tax revenue provides local Chinese officials with incentives to
promote economic reform and growth. For example , Susan Shirk (1993) claims that "fiscal
decentralization is the ‘cornerstone ' of China 's economic reform . 刊 In an interesting compar-
ative study, Roger Gordon and David Li (1997) claim that local officials have much more
strongly supported new non-state firms in China than in Russia , because local governments
can obtain revenue from taxes on new entrants in China , but not in Russia
The existing literature, however, does not adequately address the critical question of ho \V
localo伍cials themselves benefit from the increased revenue in their administrative region
Although Oi , Walder , and other observers emphasize the role of local officials in coordinating
production and exchange and in providing information about new products , technology, and
markets , their writings do not explain how the Chinese local 0伍cials are compensated for
these essential services
As Jane D
formal employees of firms. Then how do the firms compensate these officials? Two practices
suggest themselves: the extraction of bribes or nepotistic favors (tαm山 sho的ui) and the
appropriation of public property or public funds for personal benefit (nuoyong gongkuαηj
6
Both of these practices are forms of corruption. In fact , fiscal decentralization facilit ates
both of these form s of cOLTuption , and the Chinese authorities have vigorously promoted
fiscal decentralizati on. Both of these observations are consistent with our view that much of
the corruption that we observe in China is instrumental
The Economic Function of Corruption
Does selective toleration of corruption provide an effective inducement to local 0伍cials to
promote economic reform? To motivate local 0伍cials , who are its agents , the Chinese central
government , as principal , would like to reward behavior that contributes to good economic
results and to punish behavior that contributes to bad economic results. But , the central
government cannot perfectly monitor the efforts of local 0伍cials. Given their better access
to informa tion , loca l 。而cials often are able to conceal from the central government that a
good outcome resulted from good luck rather than from extra effort or that a bad outcome
resulted from poor e叮or t rather than from bad luck. Local officials naturally will exaggerate
both the importance of their e旺。rts in producing a good outcome and the importance of bad
luck in producing a bad outcome
As Daron Acemoglu and Fabrizio Zilibotti (1996 , 1999) argue , the problems of incom
plete information and asymmetric information between principal and agent , which compli
cate many principal -agent relations , are probably even more severe in poor and developing
economies like China than in Western economies. The extensive literature on the principal
agent problem generally concludes that , although incomplete and asymmetric information
compli cates the design of incentive schemes , Western economies have invented and imple
mented methods of compensati on that work reasonably well to motivate agents. As this
li terature expla ins , incomplete and asymmetric information lead the principa l both to de
centralize the de termination of compensation and to share the profits and losses of the
enterpri se with the agent. 5
5 Edward Lazear (1 995) provides a comprehensive su附y of this li terature
7
The important observation is that in China the use of corruption as a me t. hod of com
pensation embodies a decentralized compensation scheme and a sharing of pro fì. ts and losses
in much the same way as methods of compensation implemented in \Vestern economies
Corruption , whether in the form of 的nW1L shou/wi or n1wyong gongk1L an, mitigates the prob
lem of measuring and monitoring economic performance because those local 0伍cials who
make the largest economic contribution are likely to be able to extract the largest bribes or
nepotistic favors or to have the most valuable public property to appropriate. Also , the com
pensation that local officials obtain through corruptio九 particularly in the form of bribery,
is paid directly by local firms , which have the best information on the performance of local
o伍cials
Importantly, the Chinese authorities have eschewed the explicit implementation of meth司
ods of compensation commonly used in Western economies to solve the problems of incom
plete and asymmetric information. Nominally the incomes of local 。而cials are fixed and
unrelated to their performance. The fact that the Chinese authorities have not instituted
any alternative mechanism for providing appropriate incentives to local 0伍cials is consistent
with ourγiew that much of the corruption that we observe in China is instrumental
Political Advantages of Corruption as a Method of Compensation
That selective toleration of corruption is a workable solution to the problems of incom
plete and asymmetric information by itself does not explain why the Chinese authorities are
willing to live with this policy. It is also important that political considerations mitigate
against the implementation in China of incentive schemes and associated methods of com
pensation used in Western economies. G These political considerations are both a legacy of
the strategies adopted by the Chinese Communist Party in establishing its rule and a prod-
6In cOlltrast Daron Acemoglu and Th凹ry Ve山er (1998) suggest a purely economic rationale for the
existence of corruption in the presence of asymmetric information. In their model corruption is incidental ,
in the sense of being too costly for the authorities to prevent , rather than instrumental
8
lIct of the Party 's goal of maintaining its cohesiveness and absolllte political power , which
continlles to yield large benefits to Party members
Most importantly, lIsing selective toleration of corruption as a method of compensation
creates a sitllation in which the Party hierarchy always “has something刊 on most Party
members and local officials. As Susan Shirk observes (1993 , page 144) ,
Because an individual knows that higher-ups could charge him with corruption
at any time , lack of exposure is in effect special treatment for which the official
gratefully exchanges his political support
Using selective toleration of corruption as a method of compensation enhances the control
of the P arty hierarchy over Party members and local 。而cials and helps the Party hierarchy
to maintai n its political power while it is decentralizing economic decision making
Other political considerations also may be relevant. For example , Party propaganda has
always claimed that every member of the Chinese Communist Party is a sel fl.ess “public
servant of the people" . Even today the Party 's General Secretary, Jiang Zemin , admonishes
his compatriots “to learn from the sel fl.ess example of Lei Feng刊 An expli cit system of
material incentives and rewards for local officials , most of whom are Party members , would
be inconsistent with this propaganda and with the myth of the benevolent nature of the
Party
In addition , although many government officials and Party members play important eco
nomic roles in China 's dllal-track economy, many others , including many of those connected
with the army, are responsible only for political , military, and other non-economic activities
An explicit system of material incentives and rewards for economic performance would un
dermine the political and social standing of those government officials and Party members
who are not involved in economic activities. The Communist Party, like any political organi
zation , is a potentially fragi le coalition , and jealousy and dis content , especially in the army,
would threaten its cohesiveness. The use of selective toleration of corruption as a method of
9
compensation , by avoiding exp1icit compensation of 10ca1 offi cia1s for good l'runomir perfur
mance , helps to preserve the p01itica1 and socia1 standing of those government 。而cia1s and
Party members who are not contributing direct1y to the success of economir refolln
Punishment of Corruption
Manion (1997) provides a detai1ed description of the apparent e叮Orts uf th佇 Chinese
centra1 government to contr01 corruption. A1though Manion con fì. rms repor t.s of severe P\ In
ishment , and even execution , of corrupt 。而cia1s , she a1so con fì. rms the ob的 vation t. hat en-
for cement of anticorruption measures has been high1y se1ec t. ive . As Shirk pυmtsυ Ilt. (199 :1 ,
pages 143-144) , “Despite all the ta1k about corruption , Party and governmcnt 1eaders haw
punished few corrupt officia1s 刊
The threat of punishment for corruption together wi t. h th e se1ective enf()tTem f'l\ t of thi s
threat apparent1y serves two purposes . First , with 自sca1 decentra1ization and with ruttllp t. iotl
as a method of compensation 10ca1 officia1s proximate1y determine their 0\\'11 rompcnsa t. iυn
To make this system work e叮ective1y the Party authorities must deter 10ca1 (J fficia1s from be-
ing excessive1y corrupt 一- that is , from appropriating for themse1ves more t. han the amount
to which they are entitled. Second, in order for the use of corruption as a method of compen
sation to enhance the Party 's hierarchica1 contr01 structure , the Party authorities must show
that they are willing to punish any corrupt 0伍cia1 whose p01itica1 allegiance has become
suspect
If se1ective t01eration of corruption is to provide appropriate incentives , t. hen it mus t. be
the case that the more effort that a 10ca1 officia1 makes to promote good economic resu1ts the
1ess 1ike1y he is to be punished for corruption. There are reasons to expect the administration
of punishment for corruption to work in this way. Most importantly, the more inrome t. hat
an efficient but corrupt 10ca1 officia1 generates for his region , the more va1uab1e he is to the
citizens of his region and to the central government , both of whom share il1 thisνrospert t.y ,
and the greater is the chance that any potentia1 rep1acement for this corrupt 1υca1 officia1 wiU
10
n υ t perfυ叫rm a臼s well. Th孔叫us丸, even if a local 0 侃c1 a叫l '冶s corrupt behav叫10r IS re叭1
l昀s t. he economi c 1νJe剖rfOl口mη1an ce 0叫f h圳11S r閃'egIOn九1川, the more likely t仙ha叫t the cent仇i九ral government will
aostain from pun ishing h im , beyond perhaps a slap on the hand. In contrast , cOrrllpt local
officials who seem easily replaceable , or , more generally, whose corrupt behavior is ou t of
proportion to their perceived value , are likely to be the hapless victims of crackdowns on
corruptIOn
In addition , the more income that an efficient but corrupt local official generates for hi s
region , the more he can appropriate for himself while sti ll leaving enough fruits of progress
for ordinnry people to assuage their natural jealousy of his privileged position. Accordingly>
t. he oetter the economi c performance of his region , the less likely are ordinary people to
sqlleal on a corrupt loca l offi cia l or to complain about him. In contrast , a corrupt local
υ而 rial \\'h ose region 's economic performance is poor is likely to encounter popular pressure
to Pllnish him . 1n SI I帆 although , as Shirk notes (1993 , page 144) ,“Laxi ty toward official
COITllp tJ υ11 can be viewed as a side payment to officials to give them a personal stake in
refurm刊, selective punishment of corruption is essential to both the credibili ty and e伍c1 ency
of the use of corruption as a method of compensation
Future Prospects
Our analysis of selective toleration of corruption as a method of compensat ion in China
has focused on the strategic interactions between Party authorities , acting t hrough t he cen
t ral govemment , and the local 0伍cials who , given the legacy of Chinese central planninιare
efft'r t. ivel!' responsib le fυr promoting economic reform. We have viewed the central govern
ment as t he principal who determines the compensation scheme for local officia ls. The main
implicatiun of our analys is has been that corruption , together with the threat of punishment
for corrllpti on and t he select ive enforcement of th is t hreat , serves as a method of compe~
sat ion tha t both sa t. isnes t he ν ol i t i ca l objectives of the Communist P arty and provides an
efft'rtive il1 ducemen t. to lucal officials to promote economic reform
11
As evidence for our claim that much of the corruption that we observe in China is ins t. rll
mental rather than incidental, we have pointed to three other aspects of Chinese ('conomic
policy that complement and support the use of corruption as a method of ∞mpensatlOn
First , the Chinese authorities have actively promoted the fìscal decentralization t.hat cre
ates the opportunity for corruption by local offìcials. Second , the Chinese allthorities have
not instituted any alternative mechanism for providing incentives to local offìcials. Third ,
the enforcement of anticorruption measures , including punishments for corrllption , has been
highly selective
What does our analysis imply for the future course of China's economic refonn? The
credibility and effectiveness of a compensation scheme that involves the t. hreat IIf pll l\ i 只 hmcnl
for corruption and the selective enforcement of this thrent Je jJC' nd cri tic[\ 1 hυn 1' \11 h the
central government 's reputation for reliability and its s llr v i\'只 1 probauility. If t.!w 叭叭'int!
prospects of the current central government were to becom C' \lI1 cC' rtain , ancl If loc l\ l oflìci[\1s
were to anticipate that regardless of their economic per fÚllllnnc C' they ha\ ' ,、[\ S川 1St nnt I 只 l
probability of being replaced as a result of political changes , then the thrent IJf pll l\ ishmcnt
would be unlikely to deter them from engaging in excessive co rrllpti on. This ouservation
suggests that the success of the Chinese model of economi c reform , a model that is itself a
product of the Communist Party 's goal of maintaining its rohesiveness and nlJsυ1111 1' Pυlitiral
power , has depended on the Party 's ab ility to ach ieve this gonl. lf t. he futulρlni ngs th rea ts
either to the stability of the Party 's hierarchy 0 1' to its monopoly of politiral po\\'凹, then
China will have to 且nd another way to support economi c incen t. ives and to maintain t'cυnOlnlC
growth during the transi tion to a market economy
In any event , there is widespread agreement that China 's current dual-trnrk economy is a
transitional state that will evolve in the future into a predominantly market ecυnom~'. B叭 , as
we have observed , selective toleration of corruption as a method of compensat. iυn is associated
with the critical role played by local 0伍cials in the dual-track economy. J> 1l'sU Inl\lJ IYI the
evolution towards a market economy will imply a decrease in the impo r t.nnceυf (,'rumxi ,
12
an associated decrease in the economic importance of local officials , and a transition to
methods of compensation similar to those implemented in Western economies . China 's
prospective entry into the \月vorld Trade Organization is likely to accelerate these tendencies
How economi cally and JJoliti cally disruptive these changes will be remains to be seen
13
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15
Research Fellows
Centre for Asian Pacific Studies Ccntre for Public Policy Studics
Professor Kueh, Yak-yeow, Director Professor Ho , Lok-sang , Dircctor
Professor 8ridges, 8rian, Professor Dr. Chc,以'ai-kin 、 AEP
Dr. Chan, Che-po, A TP Dr. Fan‘C. S imon 、 ATP
Dr. Cheung, Kui-yin, AEP Dr. Law , Wing-k 川、 Kenneth. 八T I'
Dr. Fan, C. Simon, A TP Dr. Lcc ‘ Kcng-mun , Willialll. 八 EI'
Dr. Hiroyuki , 1m缸 , AEP Dr. Lelln心 Kit-fll l1 , 8eatricL'.八日,
Mr. K wok , Hong-kin, A TP Dr. Li , Pang-kwong , A TP
Dr. Lee , Keng-mun, William , AEP Dr. Lin ‘ PinιATP
Dr. Lei , Kai-cheong , ATP Dr. Siu , Oi -ling, A TP
Dr. Leung , Kit-fun, 8eatrice, AEP Dr. Yoon, Thomas , AEP
Dr. Li , Pang-kwong, A TP Dr.以le i 、 X iangdo ng, AEP
Dr. Ren , Yue, ATP
Dr. Yoo n, Thomas , AEP
Dr. W凹 , Xiangdong, AEP
Dr. Wong , Yiu-chun皂, ATP
All the Research Fellows listed above are staff of Department of Economics , and Department of Politics and Sociology. Interested staff from othcr academic departmcnts of thc University and other institutions are welcome to join thc Ccntrcs as Research Fc \lows or Research Associates. Please contact Dr. Raymond Ng (Tc l. 2616 7427) for furthcr informatÎon
AEP = Associate Professor A TP = Assistant Professor
Working Papcr Scrics
No. Topic Author
45 (1/97) CA J>S China and the Prospects for Economic Integration Professor Y. Y. Kuch within APEC
46 (2/97) CAPS Export Competition Among China and ASEAN in the Dr. Thomas J. Voon and US Market: Application of Market Share Models Dr. Xiangdong Wei
的 (3月7) CAPS Hong Kong's Outward Processing Investment in China: Dr. Kui-yin Cheung Its Implications on Hong Kong Economy
48 (4/97) CAPS China - Taiwan's Trade and Investment Relations and Dr. K. C. Lei their Impact on Taiwan 's Income Distribution
49 (5月7) CAPS Overseas Chinese and Foreign Investment in China: Dr. C. Simon Fan An Application ofthe Transaction Cost Approach
50 (6/97) CAPS Japancse FDI , Exports and Technology Transfer to Dr. Elspeth Thomson China
51 (7月7) CPPS Incomc Protcction and the 日出rly ﹒ Dr. Willialll Keng-mun Le巴An Examination of Social Security Policy in Singapore
52 (8月7) CAPS Old Ally Vers l1s New Friend: China's Economic Dr. 8rian 8ridges Relations with the Two Koreas
53 (9/97) CAPS Hong Kong as a Financial Centre ofGreater China Professor Y. C. Jao
54 (10月7) CAPS The Econo ll1 ic Link- l1 p ofHong Kong and Gl1angdong: Professor Sh l1-ki Tsang and Structural and Developmental Problems Dr. Yuk-shing Cheng
55 (11/97) CPPS Electoral Cleavages and the Post-1997 Hong Kong's Dr. Pang-kwong Li Political Dynamics
56 (12月7) CPPS A Study ofOccupational Stress, Job Satisfaction, and Ms. Oi-ling Si l1
Ql1 itting Intention in Hong Kong Firms: The Role of Locus of Control and Organizational Commitment
57 (13N7) CP I'S A Modcl of Human Nature and Personal Development Professor Lok-sang Ho
58 (14N7) CI'PS Wagc CO ll1 pcnsation for Job Risks: The Case ofHong Dr. W. S. Siebert and Kong Dr. Xiangdong Wei
59 (1 SN7) CI'I'S Positive Effects of Modernization on Later Life Dr. Kenneth W. K. Law
60 (16月7) CP I'S Filial Picty and Caregiving 8urden in Shanghai, Professor William T. Liu , J>eoplc's Rcpublic ofChina Professor Elena S. H. Yu ,
Professor Shang-Gong Sun and Professor Yin Kean
No. Topic Author
6 1 ( 1 7月 7) CPPS How to Help the Reh abilitated Drllg Abll se rs No l 10 l)r. Wai-kill (ï比Relapse to Drugs Again? A Success ful Case . Hong Kong
62 ( 18/97) CPPS The Yallle ofTime and the Interaction of the Q lIanlily & Dr. Chengze Simon Fan the Quality of Children
63 (19/97) CPPS Generational Dependency and Elderly Care: Dr. Ying-yi Ilong and A Psychological Interpretation ofCultural Norl1l s and Professor William T. Liu Exchange
64 (2 0/97) CPPS Living Arrangements and Elderly Care: The Casc of Profc ssor Rance P 1.. Lcc 、
Hong Kong Dr. Jik-J ocn Lce , Professor Llcna S. 11. YlI‘
Professor 只hang-Gong Sun alld Professor William l . Lill
65 (2 1/97) CPPS The Social Ori gin of Al zheimer's Di sease: A Palh Professor William T. Liu and Anal ys is Professor Shang-Gong SlI n
66 (22/97) CAPS Country of Origin Rules: Its Origin , Nature and Professor l.廿 \..- san g. 11 廿
Directions for Reform
67 (23月7) CAPS A Long Term Monetary Strategy for Hong Kong and Professor Lok-sang 11 0 China
68 (24/97) CPPS Are Union Jobs Worse? Are Governmenl Jobs Better') Pro fessor J 廿hn S. Ilcy叭'ood.
69 (25 /97) CP PS Restructurin g the Party/state Relations China's Political Structural Reform in the 1980s
70 (26月7) CPPS Estim ating British Workers' Demand for Safety
71 (2 7月7) CPPS Managerial Stress in Hong Kong and Taiwan : A Comparative Study
Professor \'丸 , 只 . Sic h<、鬥 and
Dr. Xiangdong Wt'i
Dr. Yill-chllng W0n g.
Dr. Xi angdong Wei
Ms. Oi-ling Siu , Dr. Luo Lu and Professor Cary L. Cooper
72 (2 8月 7) CPPS Teaching Social Science in the East Asian Context Professor William T. Liu
73 ( 1/98) CPPS Interpreting the Basic Law with Chinese Characteri stics Professor James C. Hsiung
74 (2月8 ) CPPS Worker Participation and Firm Performance: Evidence Professor Jolm T. ^ddison. from Germany and Britain Professor W. Stanlcy Siebcrt 、
Professor Joachim Wagncr and Dr. Xiangdong Wci
75 (3月 8) CPPS The Nature of Optimal Public Policy Professor Lok-sang Ho
t'I~~ Topic
76 (4月8) CPPS Symbolic ßOllndaries and Middle Class Formation in Hong Kong
77 (5月8) CPPS Urbanization in Sha Tin and Tuen Mun - Problems and Coping Stratcgies
78 (6月8) CAPS Coping with Contagion: Europe and the Asian Economic Crisis
79 (7月8) CAPS New World Order and a New U.S. Policy Toward China
80 (8月8) CPPS Poverty Policy in Hong Kong: Western Models and CulturalDivergence
81 (9月8) CAPS The Paradox of Hong Kong as a Non-Sovereign International Actor
82 (1 0月8) CAPS Political Impacts ofCatholic Education in Decolonization : Hong Kong and Macau
83 (11/98) CAPS The Rise and Fall ofthe HK Economy
84 (12月8) CAPS 中國貿易保護代價的測算 方法、結論和意義
85 (13月8)CA叭 中國居民收入差距的擴大及其原因
86 (14198) C八I'S The Labor Incomc Tax Equivalent ofPrice Scissors in Pre-Rcform China
87 (15NK) CPPS Complcmcntarity、 1 nvestment 1 ncentives , and Evolution of Joint Ventllres
88 (16/98) CP J>S A Thcory of Ilealth and Health Policy
89 (1/99) Cpp只 Towards a Ncw Intcrnational Monetary Order: The World C lI rrcncy Unit and the Globallndexed Bond
90 (2月的 CPPS Age Differences in Work Adjustment: A Study ofMale and Female Managerial Stress, Coping Strategies and Locus of Control in Hong Kong
91 (3N~) CAI刑八 Comparative Study of Managerial Stress in Greater China: Thc Direct and Indirect Effects of Coping Strategies and Work Locus of Control
Author
Ms. Annie H. N. Chan
'。
1 ,“ KI ou wk kc nLA ---9U
L--叮
gg nHr-O
刊
H
到
revMM
Dr. Brian Bridges
Professor James C. Hsiung
Dr. William Lee and Professor John Edwards
Professor James C. Hsiung
Dr. Beatrice Leung
Profi巴ssor Lok-sang Ho
張曙光教授
趙人偉教授 、 李寶教授
Dr. Hiroyuki Imai
Dr. Ping Lin and Dr. Kamal Saggi
Professor Lok-sang Ho
Professor Lok-sang Ho
Dr. Oi-ling Siu, Professor Paul E. Spector, Professor Cary L. Cooper, Dr. Kate Sparks and Dr. lan Donald
Dr. Oi-ling Siu , Professor Paul E. Spector, Professor Cary L. Cooper, Dr. Luo Lu and Dr. Shanfa Yu
No.τ~p~ AU!..' lO r
92 (4月的 CPPS Implementing Effïcient Allocations in a Modc l of Professor I:dward J. Cì rccn alld Financiallntermediation Dr. Ping Lin
93 (5/99) CPPS R & D Incenti ves in Vertically Related Indllstri cs Dr. Samiran 13ancrjcc and Dr. Ping Lin
94 (6月9) CAPS Testing for a Nonlinear Relationship among Dr. YlIe Ma and FlI ndamentals and Exchange Rates in the ERM Dr. Angelos Kanas
95 (7/99) CPPS Health Care Delivery and Financing: in Search of an Professor Lok-sang 1-1 0
Idea l Model - Reflections on the Harvard Report
96 (8月的 CPPS A Strllctllral Eqllation Model ofEnvironmental Attitllde Dr. Oi-ling Sill and and 8ehaviollr: The Hong Kong Experience Dr. KlI i-yin Cheung
97 (9/99) CAPS Hong Kong's Inflation lI nder the U.S. Dollar Peg: Thc Dr. Hiroyllki Im ai 8alassa-Samllelson Effect or the DlI tch Disease')
98 ( 1/00) CAPS Strllctural Transformation and Economic Growth in Dr. Hiroyllki Imai Hong Kong: Another Look at YOllng's “ A Tale ofTwo Cit i 巴s"
99 (2月0) CAPS Corporati sm and Civil Society in thc People ' s Rcp lI hlic Or . Wong 、 1 1I -chllll 位 and
of China: Ell1 pirical Evidence and Theoretical Dr. Chan ( hc-po 1m pl ications
100 (3 /00) CAPS Globalization and Sino-A ll1 erican Econo ll1 ic Rclatil) IlS Profcssor C I-'rcd Ikr).!st l' n
101 (4/00) CPPS Government Expenditures and Eqllilibrillm Rea1 汁。 fcssor f{ ρnald) Bah er且 all , 1
Exchange Rates Dr . Jcffrey 11 . Bcr恨、trand
102 (5 /00) c rp s A Case Study of Economic Ecology: The Hong KOll g Profe ssor Lok- sang 1-/ 0
Economy' s Plunge into a Deep Recess ion in 1998
103 (6/00) CPPS Incentives and Corrllption in Chinese Economi c Dr. Chcng/c Simon Fan and Reform Professor IIcrschcl 1. GroSS l1l<l1l
A fll llli st ofwork ing papers titles is al so available at the Centre homepag肘: http ://www.ln .eduhkJcaps/ and h ttp ://\叭νw . ln .edll . hk/cpps/