Journal Article

Political Capital in a Market Economy

Nee, Victor, Opper, Sonja

2010

Overview

This research applies a transaction-focused institutional analysis to compare the value of political capital in different institutional domains of China's market economy. Our results show that the value of political capital is associated with institutional domains of the economy in which agents can use political connections to secure advantages. Political capital is most fungible in institutional domains where government restricts economic activity. In this sense, the value of political connections in China does not differ fundamentally from patterns observable in established market economies. We interpret this as evidence suggesting China may have experienced a tipping point in its transition to a market economy around the turn of the new century.

• Publisher: The University of North Carolina Press,University of North Carolina Press,Oxford University Press
• Subject: Advantages / Business structures / Capital / Capital markets / Capitalism / Chief executive officers / China / Committees / Competition / Construction industry / Economic activity / Economic Policy / Economic regulation / Economic research / Economic sociology / Economic value / Educational Research / Entrepreneurs / Foreign Countries / Free Enterprise System / General studies. Economic systems / General studies. Ideologies / Government (Administrative Body) / Government bureaucracy / Government contracts / Human Capital / Industrial regulation / Institutional Environment / Institutional Evaluation / Institutions / Instructional Leadership / Market economies / Market Economy / Peoples Republic of China / Political activity / Political aspects / Political capital / Political influences / Political Power / Political sociology / Politics / Social Capital / Sociology / Sociology of economy and development / Standard deviation / STRATIFICATION PROCESSES / Studies / Transition economies / Value / Values