Three Essays on China's State Owned Enterprises : Towards An Alternative to Privatization

Minqi Li

ISBN 10: 3639090829 / ISBN 13: 9783639090826

Published by VDM Verlag Dr. Müller, VDM Verlag Dr. Müller E.K., 2008

Neuware - A common theme in the analysis of the contemporaryChinese economy is that the Chinese state ownedenterprises fail to operate efficiently because ofambiguous property rights, soft budget constraints,and government intervention. These authors advocatean economic reform program based on large-scaleprivatization. This monograph advances analternative perspective on the state ownedenterprises. It argues that the state ownedenterprises have made an important contribution toChina's macroeconomic stability. In the Chinesecontext, the state owned enterprise sector must besufficiently large so that public sector investmentaccounts for about 50 percent of the total capitalformation. The performance of the state ownedenterprises can be enhanced by promoting workers'participation in management. Much of the disguisedunemployment in the state sector may be due toinsufficient aggregate demand rather than technicalinefficiency. An increase in aggregate demandshould lead to substantially higher productivity inthe state owned enterprises. Seller Inventory # 9783639090826

Synopsis:

A common theme in the analysis of the contemporary Chinese economy is that the Chinese state owned enterprises fail to operate efficiently because of ambiguous property rights, soft budget constraints, and government intervention. These authors advocate an economic reform program based on large-scale privatization. This monograph advances an alternative perspective on the state owned enterprises. It argues that the state owned enterprises have made an important contribution to China's macroeconomic stability. In the Chinese context, the state owned enterprise sector must be sufficiently large so that public sector investment accounts for about 50 percent of the total capital formation. The performance of the state owned enterprises can be enhanced by promoting workers' participation in management. Much of the disguised unemployment in the state sector may be due to insufficient aggregate demand rather than technical inefficiency. An increase in aggregate demand should lead to substantially higher productivity in the state owned enterprises.

Bibliographic Details

Title: Three Essays on China's State Owned ...
Publisher: VDM Verlag Dr. Müller, VDM Verlag Dr. Müller E.K.
Publication Date: 2008
Binding: Taschenbuch
Condition: Neu