How State-owned Enterprises Drag on Economic Growth: Theory and Evidence from China

Description

Using a series of studies, this book shows that ownership structure plays a major role in the national economy as a whole. Inefficient State Owned Enterprises (SOE's) damage the development of private enterprises and overall economic growth in various ways. The policy implications are very clear: in order to achieve healthy and fast economic development, there must be a radical reform of SOEs. Moreover, the aim of the SOE reform is not just to highlight the enterprises’ efficiency, but also create favorable conditions for financial deregulation, elimination of market segmentation, weakened market monopoly, and balanced regional economic development. The book argues that SOE reform is pivotal to stimulating general economic reform and development in order for China to achieve a smooth transition to a mature market economy. Front Matter ....Pages i-xvii China’s SOEs’ Efficiency Losses: A Survey (Ruiming Liu)....Pages 1-34 Survival Predicament, Soft Budget Constraints and Economic Growth Cumbrance: Mechanism I (Ruiming Liu)....Pages 35-52 Financial Repression, Ownership Discrimination and Economic Growth Cumbrance: Mechanism II (Ruiming Liu)....Pages 53-71 SOEs, Invisible Subsidy and Market Segmentation: Mechanism III (Ruiming Liu)....Pages 73-95 Upstream Monopoly, Asymmetric Competition and Social Welfare: Mechanisms IV (Ruiming Liu)....Pages 97-113 Ownership Structure, Growth Differences and Regional Disparities: Mechanism V (Ruiming Liu)....Pages 115-138 Conclusions (Ruiming Liu)....Pages 139-142