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Some International Policy Issues for China

K. C. Fung

University of California, Santa Cruz, CA, USA

E-mail Address: kcfung@ucsc.edu

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Nathalie Aminian

University of Rouen, 1 Rue Thomas Becket, 76821 Mont-Saint-Aignan, France

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Alicia Garcia-Herrero

Bruegel, Rue de la Charité 33-1210 Brussels, Belgium

Natixis, Global Market Research Corporate & Investment Banking, Asia Pacific Level 72, International Commerce Centre 1 Austin Road West, Kowloon, Hong Kong

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https://doi.org/10.1142/S1793969015500016Cited by:0 (Source: Crossref)

Abstract

In this paper we provide a simple model of an emerging market like China. We attempt to capture two characteristics of an emerging market: The simultaneous presence of market failures and government failures. In this model, we study the national welfare properties of four types of “governance” or “institutions”: A Benevolent Dictator, Extreme Economic Liberalism, Extreme Economic Nationalism and Factional Fighting with groups pressuring the government. We also discuss a case of the Realistic Dictator, who may switch from adopting liberal policies to nationalistic policies as the domestic market gets larger.

Keywords:

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