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The Effect of State Capacity under Different Economic Systems


  • 研討會日期 : 2016-07-26
  • 時間 : 14:30
  • 主講人 : Professor Tuan-Hwee Sng
  • 主持人 : Professor Chu-An Liu
  • 地點 : Conference Room B110
  • 演講者簡介 : Professor Sng received his Ph.D. in Economics from Northwestern University at 2011. He is currently an Assistant Professor at National University of Singapore. His research fields are Economic History, and Political Economy.
  • 演講摘要 : We examine empirically the effect of state capacity on economic development under two distinct economic systems. In 1978, China began its transition from a planned economy to a market economy. Focusing on the rural Sichuan province, we investigate if local communist party strength mattered to developmental outcomes in 1957-78 (Maoist period) and in 1978-85 (reform period). To tease out causal effects, we use the Long March, a military retreat undertaken by the Red Army in 1934-35, as an instrument. We find that counties with more communist members recorded faster output growth and lower mortality rates after 1978, but not before that. In fact, party membership numbers were positively associated with mortality rate during the Maoist period. Our findings suggest that state capacity could indeed accelerate development, but the effect is substantial and unambiguous only when the state seeks to complement the market instead of substituting it.