Embedded State-Building: Economic Openness, Tax Structure and Fiscal Capacity in China

• In Event: Lightning Talk: Foreign Investment and Economic Policy

Brief Overview

With original data sets on bureaucracy, we argue that an "Impossible Fiscal Trinity" exists that urges China to respond to economic openness by pursuing "embedded state-building," i.e., centralizing taxing rights and expanding fiscal capacity.

Author

• Yajie Wang, Yale University