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nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2013‒02‒08
two papers chosen by
Alexander Harin
Modern University for the Humanities

  1. China's Goal of Combining Economic Self-Reliance With Its Development: Changing Perspectives and Challenges By Tisdell, Clement A.
  2. Perceptions of unreported economic activities in Baltic Firms. Individualistic and non-individualistic motives By Jaanika Meriküll; Tairi Rõõm; Karsten Staehr

  1. By: Tisdell, Clement A.
    Abstract: The attainment of self-reliance (zi li geng sheng) is an important goal for China. However, approaches to achieving it have altered greatly since the People’s Republic was established in 1949. Following the split between China and the Soviet Union in 1960, Mao Zedong claimed that China could achieve this goal by promoting economic self-sufficiency at the national level as well as at subnational levels. This approach resulted in a considerable economic burden for China. While national economic self-sufficiency probably was forced on China by the hostility of foreign nations towards it, subnational self-sufficiency was not. Following the death of Mao Zedong in 1976 and the eventual rise to power of Deng Xiaoping, China’s market reforms began in 1978. With the introduction of the household responsibility system in agriculture, China gave up relying on communes and collectives for its agricultural production. The market reforms began in rural areas but were only slowly extended to urban areas because of some opposition to some politbureau numbers to the market reforms. The process of the market reforms since 1978 is outlined with some attention being given to the political hurdles involved in achieving these reforms. As a result of these reforms, the goal of subnational economic self-sufficiency has well and truly been abandoned and national self-sufficiency is no longer practised. These changes have brought new economic risks for China and the Chinese people. The benefit, however, has been greater economic growth and the enhanced global status of China. While economic self-sufficiency is no longer an over-riding goal for China, one part of zi li geng sheng is still very important for it nationally, namely, to control one’s destiny, that is, to be in charge of one’s own affairs, goals and decision-making.
    Keywords: China, Deng Xiaoping, economic self-reliance, economic self-sufficiency, Mao Zedong, market reforms, political economy, Richard Nixon, United States., International Development, Political Economy, O2, P21, P31, P52,
    Date: 2013–01
    URL: http://d.repec.org/n?u=RePEc:ags:uqsese:142567&r=cis
  2. By: Jaanika Meriküll; Tairi Rõõm; Karsten Staehr
    Abstract: This paper analyses managerial dishonesty in the form of economic activity not reported to the authorities. We employ data from a survey of Baltic firm managers, who were asked to assess the prevalence of unreported profits, employment and wages in their industry and to give their views on a range of questions related to various reasons for dishonest behaviour. Unreported economic activities are perceived to be widespread, although their extent and composition vary across the three countries. We employ a principal component analysis of the survey answers and identify three clusters capturing both individualistic and nonindividualistic motives for dishonest behaviour: 1) reciprocity towards government; 2) rational choice related motives; and 3) norms towards society as proxied by the tolerance of illegal activities. The econometric analysis indicates that all three motives are related to perceptions of unreported activities in the Baltic countries
    Keywords: unreported economic activity, tax evasion, tax morale, norms, governance, social coherence, Baltic countries
    JEL: E61 F36 F41
    Date: 2013–02–04
    URL: http://d.repec.org/n?u=RePEc:eea:boewps:wp2012-8&r=cis

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