Abstract Based on grounded theory, this paper analyzes the formation mechanism of state capture from the micro-level according to the institutional theory, exchange theory and the behavioral theory of the firm by intensive interviews with business executives of captor firms. A new analytical framework of “institution-initiative-behavior-relationship” is built. The importance of “guanxi” in the formation of state capture is discussed with a summery of the reason characteristics of the state capture. This paper provides theoretical framework of state capture for both redesigning of regulatory reform and governing state capture.
2012, Vol. 1 
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