How does China's legal system benefit and hinder their economic growth?

Expert Solution

China's legal system has been quite weak and it has not hindered but only benefitted the Chinese economy. Legal framework that manages the laws and regulations has not caused any serious distortions in factor markets. Because of a weak systematic legal and institutional reform there has been a constant effort to liberate the market.

This includes factor market, financial market and goods market which implies that the prices of factors, goods and services and capital have been allowed to set accordiing to the relative scarcities and social preferences. This tendency has led to the creation of an unbalanced economy which has somehow helped in triggering the economic growth. With respect to the environmental degradation such as the so called pollution levels of Beijing, the economic growth has somehow slowed down with thousands of plants have been shut down to curb the pollutuion levels. Still the legal system is not strict and this has allowed the economy to prosper.

Rahul Sunny answered 1 year ago

How does Indonesia financial system promote economic growth?

Is China's political and legal system considered stable or unstable with supportive facts?

1. How can an effective legal system facilitate economic growth? 2. In July 2013, Brazil's Ministry...

1. How can an effective legal system facilitate economic growth? 2. In July 2013, Brazil's Ministry of Finance announced that the GDP forecast for the year had been lowered to 3% from 3.5%. Why would Brazil's Ministry of Finance announce a 0.5% difference in GDP growth? Explain why a 0.5% change in the growth rate is significant, aside from the lower current GDP.

What role does the financial system play in economic growth?

What role does the financial system play in economic growth? What is the empirical measure of the long run aggregate supply curve?

What is China's five-year plan and what role does it play in China's economic development? What...

What is China's five-year plan and what role does it play in China's economic development? What is the dispute?

China's economic growth has been heavily dependent on coal. Discuss its implications.

. Financial Markets and Institutions: Does the existence of a financial system promote economic growth or...

. Financial Markets and Institutions: Does the existence of a financial system promote economic growth or subdue it? Both? Neither? Consider the articles by Levine; Beck; Mayer, et al.; and Baraja et al in Finance & Development, March 2017. Be sure to include an explanation of Fisher Separation Theorem in your answer. (15 points)

How does longer business cycle affect economic growth?

List and define the four factors of economic growth. How does each of these influence economic...

List and define the four factors of economic growth. How does each of these influence economic growth? Give as many details as possible.

What is Human Capital? How does this stimulate Economic Growth? Explain. How does increasing the level...

What is Human Capital? How does this stimulate Economic Growth? Explain. How does increasing the level of education nationally help to improve Economic Growth, both in terms of the CFD and social progress? Why is it important to consider Human Capital in terms other than formal education? What are other forms of non-academic based Human Capital?

Question