ple of this is China's innovative system of Household Responsibility System which in the absence of private property rights is still capable of assuring investors to enjoy the outcomes of their activities, hence the entrepreneurial activity there has burst. Another evidence that one model is not necessarily better than the other can be found on the success of several market economies of industrialized countries. Europe, the US and Japan have all diverged in labor markets, corporate governance, regulation, social protection, and banking and finance. There are several reasons for this, but one obvious one is that societies differ in values and norms that inevitably shape their institutions. The final major reason for institutional diversity is derived from the developing countries' n
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