Demand for Regulation and Social Capital --The Chinese Understanding of Economic Transformation and the Government' Role
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| Title | Demand for Regulation and Social Capital --The Chinese Understanding of Economic Transformation and the Government' Role
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| Author | Qu Wenyi, Cui Yan, Liu Hong and Liu Hongzhong |
| Organization | Center for Comparative Economic System Research, School of International Studies, LNU;Institute of Japan Studies, LNU; School of International Studies, LNU |
| Email | wenyiqu@126.com;cuiyan10@yahoo.com.cn;liuhongln@tom.com;hongzhongliu@126.com |
| Key Words | Need for Regulation; Social Capital; Economic Transition; Government's Role; Trust |
| Abstract | Our sample survey showed that the vast majority of Chinese hold positive attitude toward the results of economic transformation, but some of the variables as individual characteristics, such as the level of consumption, employment and educational status, are clearly not the main factors which affect their subjective evaluation of the transformation, on the contrary, the situation of perceptions of social capital play a more significant impact. The survey also showed that a high proportion of the population support the government intervention in economic life - from price control to the government's direct involvement. This high level of demand for regulation is associated with lower social trust and perceptions of corruption. Using the framework of Aghion et al (2009), our research finds that, to some extent, it is the lack of social capital which gives birth to the needs of government control (intervention) of economic activity. In China's current environment with low social capital, private enterprises exert greater negative social externalities, so people are forced to turn to the government as an alternative to reduce these negative externalities, and to that end are willing to pay the cost of corruption. |
| Serial Number | WP204 |
| Time | 2012-02-15 |
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