Educational Content, Educational Institutions and Economic Development: Lessons from History

Individuals’ choices of educational content are often shaped by the political economy of government policies that determine the incentives to acquire various skills. We first present a model to show how differences in educational content emerge as an equilibrium outcome of private decisions and government policy choices. We then illustrate these dynamics in two historical circumstances. In medieval Europe, states and the Church found individuals trained in Roman law valuable, and eventually supported investments in this new form of human capital. This had positive effects on Europe’s commercial and institutional development. In late 19th-century China, elites were afraid of the introduction of Western science and engineering and continued to select civil servants - who enjoyed substantial rents—based on their knowledge of Confucian classics. As a result, China lacked skills useful in modern industry. Finally, we present a variety of other contemporary and historical applications of this theory

Network Triads: Transitivity, Referral and Venture Capital Decisions in China and Russia

This article examines effects of dyadic ties and interpersonal trust on referrals and investment decisions of venture capitalists in the Chinese and Russian contexts. The study uses the postulate of transitivity of social network theory as a conceptual framework. The findings reveal that referee-venture capitalist tie, referee-entrepreneur tie, and interpersonal trust between referee and venture capitalist have positive effects on referrals and investment decisions of venture capitalists. The institutional, social and cultural differences between China and Russia have minimal effects on referrals. Interpersonal trust has positive effects on investment decisions in Russia.http://deepblue.lib.umich.edu/bitstream/2027.42/40138/3/wp752.pd

A critical survey of recent research in Chinese economic history.

China is a resilient dinosaur. In contrast with so many other great empires in Eurasia – the Egyptian, Roman, Byzantine, Arabian, Ottoman and Tsarist-Soviet – China has the longest history. The Empire kept expanding until the mid-nineteenth century when it practically reached the physical limits for a predominantly agrarian economy. The size and wealth of the Chinese economy, the variety of its produce and the degree of commercialisation and urbanisation made China one of the most popular international trading destinations from Roman times. With the rise of the opium trade in the early nineteenth century, however, the Chinese economy has been severely impoverished at least in relative terms. In response, since the 1870s, the Chinese sought to rescue their civilisation by adopting a wide range of foreign examples in social engineering for social experiments and reforms. Nevertheless, China's per capita GDP is still very low despite its political influence in the world since the 1970s. It is justifiable to view China as a case of growth failure in the recent centuries. The study of Chinese economic history has the same age as China's modern history itself. The field has been led and dominated by the West. Scholarly attempts have been made since the turn of this century to explain China's premodern success and its downfall after the Opium War. Two approaches can be identified: the 'Sinological approach' which refers to China only and the 'comparative method' which compares China with the West. The former tries to find out what achievements China managed to make and when and how it made them and the latter seeks to understand why premodern China was not industrialised.

How fast have China's agricultural production and productivity really been growing?: new measurement and evidence

Output in Chinese agriculture has grown rapidly for the last several decades, as reported by the Statistical System in China. However, reported total output is aggregated using constant prices, which has been proven to be inappropriate by many economists. As a result, growth rates of output reported by the government may be biased. This bias can be large, particularly at a time when relative prices of agricultural products were changed substantially as part of the policy reforms during the 1980s and 1990s. A similar problem exists in the aggregation of total input. Consequently, estimates of total factor productivity, an index of output minus input, can also be biased. This study uses a more appropriate approach to measure growth in output, input and total factor productivity for Chinese agriculture. Using newly estimated production and productivity growth indexes, the impact of rural reforms are reassessed. The conventional approach overestimates the impact of the rural reforms on both production and productivity growth. Nevertheless, both production and productivity still grew at respectable rates during the reform period.China., Agricultural productivity China., Agricultural growth.,

Network Triads: Transitivity, Referral and Venture Capital Decisions in China and Russia

This article examines effects of dyadic ties and interpersonal trust on referrals and investment decisions of venture capitalists in the Chinese and Russian contexts. The study uses the postulate of transitivity of social network theory as a conceptual framework. The findings reveal that referee-venture capitalist tie, referee-entrepreneur tie, and interpersonal trust between referee and venture capitalist have positive effects on referrals and investment decisions of venture capitalists. The institutional, social and cultural differences between China and Russia have minimal effects on referrals. Interpersonal trust has positive effects on investment decisions in Russia.Transitivity, triads, referral, venture capital, China, Russi