Between Politics and Markets examines how the decline of central
planning was related to the rise of two markets: an economic market
for the exchange of products and factors, and a political market
for the diversion to private interests of state assets and
authorities. Lin reveals their concurrent development through an
account of how industrial firms competed their way out of the plan
through exchange relations with one another and with state agents.
He argues that the two markets were mutually accommodating, that
the political market grew also from a decay of the state's
self-monitoring capacity, and that economic actors' competition for
special favors from state agents constituted a major driving force
of economic institutional change. The findings presented in the
book illustrate that concrete markets for products and factors need
not mimic 'the invisible hand', nor is there a linear correlation
between their expansion and the rise of a legal-rational state.
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