Property Rights In China

21 Pages 5343 Words

n of this paper that reform policies designed after the Western neo-liberal model are not a prudent option for the property rights and incentives structure in China, and that the neo-liberal model is often inferior to the models that have spontaneously arisen and evolved on the Mainland in the last two decades of reform.


Property Rights in Economic Theory

The study of property rights and property relations is fundamental to understanding the way any economic system functions: they “govern the use of goods and services, the nature of exchange, and the behavior of producers and consumers. Property rights also affect relations between individuals and find expression implicitly as customs, traditions, and mores and explicitly as rules and laws… It has been said that property rights are the instrument of society and derive their significance from the fact that they help a man to form those expectations which he can reasonably hold in his dealings with others.”(Carson, 1997) Finally, property rights determine the institutions by mea...