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1976 in China…

1976 in China…. Funeral service for Mao. Became interested in comparative political economy. My research. International political economy The transition of communist societies Governance environment across countries Corruption and trust International business FDI Firm performance

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1976 in China…

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  1. 1976 in China…

  2. Funeral service for Mao

  3. Became interested in comparative political economy

  4. My research • International political economy • The transition of communist societies • Governance environment across countries • Corruption and trust • International business • FDI • Firm performance • IT and IB

  5. How can communism evolve into democracy and free market? Mature democracy IV III Russia Infant democracy I II China Non-democracy N. Korea Planned economy Free market

  6. China’s Transition + =? Rampant violation of property right Rapid economic growth A counterfeit of “Starbucks”

  7. Rule-based vs. relation-based governance environment • How are business activities governed in different societies? • Information • Third-party verifiable vs. private information • Enforcement • Public enforcement vs. private enforcement. • A dichotomy between two modes of economic governance: Relation-based Rule-based

  8. When the market expands… Relation-based governance will eventually destroy itself by facilitating market development Relation-based Average transaction costs Rule-based Turning point Extent of market

  9. Received “Outstanding Faculty Award” In 2008, Virginia Governor Tim Kaine awarded me the “Outstanding Faculty Award” for “superior accomplishments in teaching, research, and public service.” http://www.schev.edu/AdminFaculty/OFA/li.asp

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