Privatization and restructuring in China: Evidence from shareholding ownership, 1995–2001

Jefferson, Gary H.; Su, Jian

doi:10.1016/j.jce.2005.11.008

Cited by 159 publications

(105 citation statements)

References 17 publications

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“…As shown in Figure 3 The rise in corporate profitability is an outcome of a series of socioeconomic and institutional changes implemented in China throughout the reform period. For instance, the privatization of state-owned enterprises (SOEs) and the growth of private enterprises are found to have induced more innovative efforts and raised the labor and total factor productivity of the corporate sector (Jefferson and Su, 2006;Bai et al, 2009). Labor market reforms involving the use of labor-incentive schemes, the relaxation of worker mobility restrictions, and especially the massive rural-urban migration have all contributed to the efficient functioning of firms.…”

Section: Rising Profitability Of Enterprisesmentioning

confidence: 99%

Why Are Saving Rates so High in China?

Yang¹,

Zhang²,

Zhou³

2011

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In this paper, we define "The Chinese Saving Puzzle" as the persistently high national saving rate at 34-53 percent of gross domestic product (GDP) in the past three decades and a surge in the saving rate by 11 percentage points from [2000][2001][2002][2003][2004][2005][2006][2007][2008]. Using data from the Flow of Funds Accounts (FFA) and Urban Household Surveys (UHS) supplemented by the findings from existing studies, we analyze the sources and causes of China's high and rising saving rates in the government, corporate, and household sectors. Although the causes of China's high saving are complex, we suggest that the evolving economic, demographic, and policy trends in the internal and external environments of the Chinese economy will likely lead to a decline in national saving in the foreseeable future.

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Section: Rising Profitability Of Enterprisesmentioning

confidence: 99%

Why Are Saving Rates so High in China?

Yang¹,

Zhang²,

Zhou³

2011

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“…Most recently, two World Bank economists (Yusuf, Nabeshima) and Perkins (2006) continue the argument for privatization, if not accelerated privatization, of China's SOEs: "The desirable next steps for China's long-running SOE reform …would be the full privatization of industrial enterprises" (p. 42). Others confirm that privatization of SOEs tends to lead to better performance in the privatized SOEs (for example, Jefferson and Su, 2006). 3 But judging SOEs by their financial performance ignores the potentially significant positive externalities of SOEs, one of which is the linkage effect.…”

Section: Introductionmentioning

confidence: 99%

The Unbalanced Growth Hypothesis and the Role of the State: The Case of China’s State-Owned Enterprises

Holz

2010

SSRN Journal

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's unbalanced growth hypothesis suggests that a developing economy invest in industries with high backward and forward linkages. A high degree of linkage means that the initial investment yields large profit opportunities in other industries. These profit opportunities are taken up by entrepreneurs, i.e., lead to investment in the backward and forward linked industries. The higher the degree of linkage of the industry in which the initial investment occurred, the faster the economy grows.China is different from the typical developing economy. Due to a history of planned (balanced) development under state ownership, China at the beginning of the reform period had in place a broad industrial base. The issue of unbalanced growth in China then is one of strategic withdrawal of the state from low-linkage sectors and the continued presence of the state in high-linkage sectors. The evidence suggests that while the degree of linkage plays an important role in generating economic growth in China, current province-specific withdrawal strategies for the state sector may have no effect on economic growth.

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“…In contrast, the central government-sponsored major ownership reforms, such as share issuing privatization, failed to improve the performance of SOEs. 66 65 Without differentiating between MBO and non-MBO privatization, by examining formerly state-owned large and medium-size enterprises for the period from 1994 to 1999 nationwide, Jefferson and Jian Su (2006) found that privatization increased productivity and investments in research and development. Similarly, based on firm level data collected from one city, Xiao-yuan Dong, Louis Putterman, and Bulent Unel (2006) found that privatization has significantly improved productivity and profitability for urban firms.…”

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confidence: 99%

The Fundamental Institutions of China's Reforms and Development

2011

Journal of Economic Literature

1,887

855

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China's economic reforms have resulted in spectacular growth and poverty reduction. However, China's institutions look ill-suited to achieve such a result, and they indeed suffer from serious shortcomings. To solve the "China puzzle," this paper analyzes China's institution—a regionally decentralized authoritarian system. The central government has control over personnel, whereas subnational governments run the bulk of the economy; and they initiate, negotiate, implement, divert, and resist reforms, policies, rules, and laws. China's reform trajectories have been shaped by regional decentralization. Spectacular performance on the one hand and grave problems on the other hand are all determined by this governance structure. (JEL O17, O18, O43, P21, P25, P26)

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Privatization and restructuring in China: Evidence from shareholding ownership, 1995–2001

Cited by 159 publications

References 17 publications

Why Are Saving Rates so High in China?

Why Are Saving Rates so High in China?

The Unbalanced Growth Hypothesis and the Role of the State: The Case of China’s State-Owned Enterprises

The Fundamental Institutions of China's Reforms and Development

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