Most scholars agree that corruption and informal or curb markets are bad for growth and development (Rodrik 2003). However, China has experienced remarkable growth in the last few decades in spite of a vibrant informal banking sector. Why? How does the informal banking sector in China support or hinder growth? Do you think China is an outlier (i.e. unique) in its experience or representative of other developing countries? How should policy makers contend with China’s success?
Please use Tsai’s book on Back Alley Banking and outside sources (of your choosing) to support your perspective.
The books needed for this are Kellee S. Tsai's Back-Alley Banking and Dani Rodrik's In Search of Prosperity.
In Tsai's book, only chapters 1, 2, and 6 needs to be referenced
In Rodrik's, only chapter 11 is needed.
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