Chinese Economic History Garden - Modern Chinese Money Industry Customary Law - A Perspective on Shanghai Money Industry

Author: Du Xincheng
Publisher:
Publish Date: 2006-12-01
Features: The topic of this book is rich and broad, encompassing both research on historical perspectives and methodologies, as well as on the transformation of economic thought paradigms. It includes studies of fiscal and tax systems, as well as the evolution of corporate systems and governance models. It covers industrial layouts, the relationship between economic development and environmental changes, and various industries such as certified public accountants and money brokers. It also examines a wide range of issues like prices, wages, and living standards, among others, greatly expanding the field and scope of Chinese economic historiography. This book focuses on the professional organizations of the modern Shanghai money broker industry, with the Shanghai Money Brokers' Association, established in 1917, as its primary object of study. The research on the relationship between the Shanghai Money Brokers' Association and the money broker industry's credit system essentially involves studying customary law at the operational level of the legal system. In this regard, some theories and methods of new institutional economics will permeate our analysis. Research that has long been marginalized in conventional economics literature, such as case studies, the analysis of written contracts and legal rules, and simple cross-national comparisons, becomes increasingly important for institutionalists. Scholars often labeled with the "new institutional economics" label typically focus on two key issues: (1) how institutions affect economic growth and (2) how institutions arise. The primary interest of this book lies in the second aspect. The author seeks to clarify: in a country lacking constitutional-level institutional safeguards, how does customary law construct a favorable institutional environment in a localized area to reduce transaction costs? This can provide a case study for the modern commercial institutions of developing countries. Such security research is scarce and therefore highly needed. Additionally, the money broker industry is a part of the financial sector, and the analysis of the industry necessarily employs financial theories as analytical tools.