State Capitalism and the Rent-Seeking Conjecture

Constitutional Political Economy, Online First, September 2012

Posted: 20 Sep 2012

See all articles by Paul Dragos Aligica

Paul Dragos Aligica

George Mason University - Mercatus Center

Vlad Tarko

Dickinson College - Department of Economics

Date Written: September 19, 2012

Abstract

The notion that state capitalism (an economic system “in which the state functions as the leading economic actor and uses markets primarily for political gain”) is a new form of capitalism emerging in the global arena has been recently advanced by several authors. This paper explores the problem of the nature of this system in the light of these claims to novelty. What are its main features as described by these authors? Is state capitalism distinctive from other forms of capitalism or other types of economic systems? Are we really witnessing the emergence of a new type of economic system? To address such questions the paper starts by trying to place the model of state capitalism within the traditional comparative economic systems framework. The inconclusive result leads to a different approach in which the concept of rent-seeking society is used to underlie the structural similarities between mercantilism, real life socialism and state capitalism. The article argues that the conjecture that what has been labeled “state capitalism” is yet another form of rent-seeking system is both robust and worth further investigating.

Keywords: State capitalism, Mercantilism, Rent-seeking, Comparative economic systems, Political economy

Suggested Citation

Aligica, Paul Dragos and Tarko, Vlad, State Capitalism and the Rent-Seeking Conjecture (September 19, 2012). Constitutional Political Economy, Online First, September 2012. Available at SSRN: https://ssrn.com/abstract=2149227

Paul Dragos Aligica (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Vlad Tarko

Dickinson College - Department of Economics ( email )

Room 120, Althouse Hall
Carlisle, PA 17013
United States

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