@inproceedings{Veit2005Exchange,
abstract = {Over the past 15 years the mutual importance of institutional economics and development
economics have grown strongly. This paper attempts to apply institutional analysis to issues
of economic development by analysing China?s reform process after her accession to the
WTO on the background of the hypothesis of vertically dependent institutions. It will be
shown that institutions on a lower level (e.g. a fixed exchange rate regime) are dominated by
higher level institutions like (e.g. laws governing firms, financial and labour markets). The
latter are dominated by institutions on a higher level, for example by regulations governing
the economic and political system. Consequently, economic policy options like a change in
the exchange rate regime will depend on adjustments in areas ranging from constitutional to
company law.
In the second chapter, the concept of hierarchical institutions is introduced. In the third
chapter, the general results of China?s recent trade liberalisation under WTO rules and the
issue of a fixed exchange rate to the US Dollar are recounted. In the fourth chapter, reforms
necessitated by China?s accession to the WTO, and reflected by the present exchange rate
regime, are identified. This is followed by the analysis of institutions that are conducive to
successful implementation of those reforms in China.},
author = {Wolfgang Veit},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {330},
language = {eng},
number = {33},
series = {Proceedings of the German Development Economics Conference, Kiel 2005 / Verein f\"{u}r Socialpolitik, Research Committee Development Economics},
title = {Exchange rate risk and economic reform: the case of endogenous institutional change in China},
url = {http://hdl.handle.net/10419/19824},
year = {2005}
}
