The purpose of this paper is to use a case study of Liverpool, UK, to perform a public choice analysis of the governance of Chinatown. This case study is a theoretical application of clubs and interest group theory to ethnic economies.
The paper is based on fieldwork conducted in the Chinatown of Liverpool, England. It utilises interviews, surveys and observation to capture the emergence of the organisation of the community.
The paper demonstrates how the availability of regeneration funds can create incentives for voluntary community associations to switch into predatory rent‐seeking collectives. The characteristics of a Chinese community are predisposed towards being an effective interest group.
The paper presents new primary data and is a rare attempt to chart the evolution and development of “ethnic enterprise governance”. It extends the existing literature on the economic organisation of Chinatown into a theory of the political representation of ethnic communities, utilising the tradition of rational choice political science.
