Date Published:May 1, 1998
The first part of this paper critically examines existing explanations for institutional innovation on the one hand and economic reform measures on the other, and offers an alternative, synthetic explanation for understanding the relationship between them. The second section derives hypotheses for disaggregating the political economic dynamics of institutional creation and durability, and illustrates the empirical manifestation of these dynamics through various "observations" 7 of financial institutional innovation in Wenzhou. The final section frames Wenzhou’s apparent exceptionalism in comparative perspective both within and beyond China.
Tsai, Kellee S. "Curbed Markets? Financial Innovation and Policy Innovation in China's Coastal South." Working Paper 98–06, Weatherhead Center for International Affairs, Harvard University, May 1998.