This book addresses the long-standing puzzle of how China's private sector manages to grow without secure property rights, and proposes a new theory of selective property rights to explain this phenomenon. Drawing on rich empirical evidence including in-depth interviews, a unique national survey of private entrepreneurs, two original national audit experiments and secondary sources, Professor Yue Hou shows that private entrepreneurs in China actively seek opportunities within formal institutions to advance their business interests. By securing seats in the local legislatures, entrepreneurs...

This book addresses the long-standing puzzle of how China's private sector manages to grow without secure property rights. Drawing on rich empirical evidence, this book challenges existing theories of property rights and growth, and shows that a selective property rights regime can generate and sustain economic growth and political stability.