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Using survey data of over 3,900 private firms in China, we examine whether-and how-political connections promote or undermine the use of formal legal institutions. We find that politically connected firms are more inclined than nonconnected firms to use courts over informal avenues of dispute resolution. Furthermore, by comparing the effects of political connections on dispute-resolution patterns across regional institutional environments, we find that ''know-who'' (political influence over adjudication) dominates ''know-how'' (knowledge of navigating courts) in linking political connections to the use of courts. Contrary to canonical theories that predict the declining significance of connections following the expansion of courts, our study suggests that informal networks and formal laws are more likely to share a relationship of perverse complementarity in transitional and authoritarian contexts. Political connections are positively linked to the use of legal procedures, and the primary mechanism behind the link is ''know-who'' over ''know-how.''

Is China's public bureaucracy overstaffed? To answer this basic question objectively, one needs to define public employment in the contemporary Chinese context; survey data sources available to measure public employment; and finally, compare China's public employment size with that of other countries. Using a variety of new sources, this article performs all three tasks. It also goes further to clarify the variance between bianzhi (formally established posts) and actual staffing size, as well as other permutations of the bianzhi system, especially chaobian (exceeding the bianzhi). A key finding is that China's net public employment per capita is not as large as often perceived; quite the contrary, it is one-third below the international mean. However, it is clear that the actual number of employees in the party-state bureaucracy has grown – and is still growing – steadily since reforms, despite repeated downsizing campaigns. Such expansion has been heavily concentrated at the sub-provincial levels and among shiye danwei (extra-bureaucracies).