Three Essays on China's State Owned Enterprises

ISBN-13: 9783639090826 / Angielski / Miękka / 2008 / 176 str.

Minqi Li

Opis

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 Chinas 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.

O autorze

Li Minqi Minqi Li received Ph.D in economics at University of Massachusetts Amherst in 2002. He taught political science at York University from 2003 to 2006. He currently teaches economics at University of Utah. He is the author of The Rise of China and the Demise of the Capitalist World-Economy (Pluto Press, 2008).