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The Theory of Disinterested Governments

A Political Economy Explanation for China's Economic Ascent

Expected online publication date:  09 November 2026

Yang Yao
Affiliation:
Shanghai University of Finance and Economics

Summary

This element proposes the theory of disinterested governments to explain China's economic ascent. A disinterested government is a government that neither represents, nor is captured by the interests of any social groups. It is more likely than a biased government to avoid allocative inefficiency and increase output. A theoretical model of coalition formation finds that a more politically equal society is more likely to produce a disinterested government. Empirical evidence shows that the Chinese government has behaved in a disinterested fashion in the reform era. Social equality established by a series of social transformations has been identified as the cause for Chinese government's acting in a disinterested fashion in the reform era. Cross-country case studies and regression analysis have established a chain of causality running from political equality to the inclusive (disinterested) state, and then to faster economic growth. This title is also available as Open Access on Cambridge Core.

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The Theory of Disinterested Governments
  • Yang Yao, Shanghai University of Finance and Economics
  • Online ISBN: 9781009697385
Available formats No formats are currently available for this content.
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The Theory of Disinterested Governments
  • Yang Yao, Shanghai University of Finance and Economics
  • Online ISBN: 9781009697385
Available formats No formats are currently available for this content.
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To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

The Theory of Disinterested Governments
  • Yang Yao, Shanghai University of Finance and Economics
  • Online ISBN: 9781009697385
Available formats No formats are currently available for this content.
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