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What Do Commissars Do?

Bhagwati, Jagdish N.

The note considers the possible interaction between the narrowing of wage differentials in China and the degree of hierarchy-cum-supervision at the plant level in the Chinese economy. It is argued that the Chinese regime may end up with greater hierarchy in its techniques of production, paradoxically, as a result of the narrowing of wage differentials. In developing this thesis, the note raises an issue of novelty in the theory of comparative economic systems.



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World Development

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February 6, 2013
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