| Abstract: | Market distortions are generally caused by the state or social institutions. This paper discusses the social distortions of
the Chinese market through examining a “Chinese style” labor market-the community-based labor markets. Along with the now
standard argument emphasizing the role of the state, this paper concludes that the “right kind” of societal distortions or
control of the market have been crucial to the phenomenal success of the Chinese marketization and the seemingly puzzling
political and social stability in that country. Besides contending for the general “necessity” of market distortions, this
paper calls for further studies on the significant role of social institutions in contemporary China. |
