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By Yumin Sheng

Why and the way has the chinese language imperative executive to this point controlled to fend off the centrifugal forces below emerging globalization which are expected to undermine national-level political authority in all places? whilst institutionally empowered by way of centralized governing political events as in China, nationwide politicians confronting the risk of monetary openness will lodge to exercise tighter political keep watch over over the subnational governments of the "winner" areas within the worldwide markets. even if its target is to facilitate profit extraction, redress family monetary disparity, and extend the rule of thumb of nationwide leaders, domestically exact critical political keep an eye on may perhaps engender combined financial effects on the subnational point. Yumin Sheng examines the political reaction of the chinese language significant govt, through the ruling chinese language Communist get together, to the territorial demanding situations of the country's embody of the realm markets, and the influence of the locally selective workout of political keep watch over on significant financial extraction and provincial financial development in the course of the 1978-2005 interval.

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9 Fourth, I also test the effect of a more conventional measure of globalization – Export/GDP (the percentage share of total exports in national GDP). 10 Convergence during estimation, however, is no longer achievable when country-specific fixed effects are included. 11 Annual year dummy variables are included to control for the year-specific effects, and to correct the 8 9 10 11 The DPI data on political decentralization start in 1975 for many countries, but following Hiscox, I use data from 1980 onward.

1994, Chapter 8). Unlike large-N cross-country comparative studies drawing on diverse data sources from many countries that often maintain different statistical standards, analysis based on subnational units within one country utilizes relatively homogenous data, implicitly controls for many unobservable but important factors, and thus can improve the overall validity of comparative research. Given these strengths, it is no wonder that the approach has been gaining rapid popularity in political science (Snyder 2001).

1995; Oi 1999). Due to the political predominance of the Chinese political center in a most centralized political system, however, the overall credibility of fiscal contracts and the related central commitment to protecting local property rights should be questionable. Reneging on fiscal contracts and “forced borrowings” from below by the central government in contravention of formal contractual terms were common. This has been extensively documented in existing research on the post1978 Chinese political economy, as I will review in Chapter 3.

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