A Multitask Theory of State Enterprise Reform

Bai, Chong–En; Li, David D.; Tao, Zhigang; Wang, Yijiang

doi:10.1006/jcec.2000.1681

Cited by 284 publications

(145 citation statements)

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“…Since 1978, China has undergone a gradual transition from a centrally planned economy dominated by public ownership to a market economy through selective privatization of state-owned enterprises (Cao, Qian, and Weingast, 1999;Bai, Li, Tao and Wang, 2000;Bai, Lu, and Tao, 2006a).…”

Section: Executive Summary Of "Determinants Of Entrepreneurial Activimentioning

confidence: 99%

“…Unlike the formerly planned economies in the Eastern Europe and the former Soviet Union, however, China has taken a gradual approach in reforming its inefficient state-owned enterprises. One possible rationale for the gradual reform approach is that the Chinese government wants to maintain social stability during its reform process (Cao, Qian, and Weingast, 1999;Bai, Li, Tao and Wang, 2000;Bai, Lu and Tao, 2006a). In the first ten years of China's economic reform from 1978 to 1988, the Chinese government started to open its economy to foreign trade and investment including entry of foreign invested firms; but there were still ideological biases against China's indigenous private enterprises, the emergence and development of which was restricted to the rural areas (Qian, 2000).…”

Section: A Theoretical Framework and Hypothesesmentioning

confidence: 99%

“…Before 1978, China was a centrally planned economy dominated by public ownership; and since then it has undergone a transition to a market economy through privatization of stateowned enterprises and establishment of private enterprises . Unlike the formerly centrally planned economies in the Eastern Europe and the former Soviet Union where private ownership has arisen quickly through massive privatization of state-owned enterprises and mushrooming establishment of private enterprises, China has taken a gradual approach to privatizing its state-owned enterprises (Cao, Qian, and Weingast, 1999;Bai, Li, Tao and Wang, 2000;Bai, Lu, and Tao, 2006a). More importantly, with the dominant yet inefficient state-owned enterprises, there have been ideological biases against private sector development throughout China's economic reform.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of entrepreneurial activities in China

Liu

Tao

2010

Journal of Business Venturing

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135

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Abstract:The institutional environment -including protection of private properties and contract enforcement -has been rather unfavorable for the emergence and development of China's private enterprises. This is in sharp contrast to the case of the developed economies where the institutional environment is conductive to the entrepreneurial activities and only the personal attributes of would-be entrepreneurs determine their entrepreneurship decision. We thus propose a theoretical framework for the entrepreneurship decision in China with a focus on the role of the institutional environment. Using a life-histories survey data of 2,854 respondents from twenty cities in China, we find strong support for the impacts of the institutional environment and its interactions with other determinants of entrepreneurship decision. Keywords Executive summary of "Determinants of Entrepreneurial Activities in China"This paper studies the determinants of entrepreneurial activities in China, which is one of the worlds' four biggest emerging economies. Since 1978, China has undergone a gradual transition from a centrally planned economy dominated by public ownership to a market economy through selective privatization of state-owned enterprises (Cao, Qian, and Weingast, 1999;Bai, Li, Tao and Wang, 2000; Bai, Lu, and Tao, 2006a).With the dominant and yet inefficient state-owned enterprises, there have been ideological biases against private sector development throughout China's economic reform. Indeed private enterprises were not even formally permitted to exist until 1988 -ten years after China initiated its economic reform. As a result, private enterprises have been subject to expropriation of their private properties and discrimination in business dealings including contract enforcement. The institutional environment, which includes property rights protection and contract enforcement (North, 1990), has been rather unfavorable for the emergence and development of China's private enterprises. This is in sharp contrast to the case of the developed economies where the institutional environment is conductive to the entrepreneurial activities and only the personal attributes of would-be entrepreneurs determine their entrepreneurship decision.With the dominance of public ownership, both before and after the economic reform initiated in 1978, China's would-be entrepreneurs generally have had working experience in enterprises of varying degrees of state ownership or public organizations or government agencies. The decision to become an entrepreneur often means quitting a position in an entity of public ownership and starting a privateownership business with ambiguous legal status; hence in China entrepreneurship is often referred to as "jumping into the sea". In particular, there are a set of personal attributes of would-be entrepreneurs (such as the political participation of would-be entrepreneurs as well as the public-ownership status of their current employers) that determine their payoffs from remaining in the public-ownership entitie...

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Section: Executive Summary Of "Determinants Of Entrepreneurial Activimentioning

confidence: 99%

Section: A Theoretical Framework and Hypothesesmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Determinants of entrepreneurial activities in China

Liu

Tao

2010

Journal of Business Venturing

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135

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“…Time-specific fixed effect TFP in region i via the spatial autoregressive term. These feedback loops arise because region i is considered as a neighbor to its neighbors, so that impacts passing through neighboring regions will create a feedback impact on 10 The impact of SOEs on private section is discussed in Huang (1998), Bai et al (2000), Bai et al (2004), and Huang et al (2008). SOEs might generate crowding out effect, as well as creating distortions in both input and output markets (especially in the financial market), which all have significant impact on private firms.…”

Section: The Empirical Modelmentioning

confidence: 99%

FDI technology spillovers, geography, and spatial diffusion

Lin

Kwan

2016

International Review of Economics & Finance

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This paper investigates the geographic extent of FDI technology spillovers and associated spatial diffusion. By adopting a spatiotemporal autoregressive panel model as the platform of our study, the complex impact resulting from FDI penetration is separated into spatial direct and indirect effect while accounting for feedback loops among regions. A set of spatially partitioned summary measures is produced to identify and to quantify FDI spillovers from different channels with distinct geographic scopes. Empirical results based on data from China document that the direct impacts of FDI presence to a specific location itself are likely to be negative. Domestic firms mainly benefit from FDI presence in their neighboring regions through knowledge spillovers that have wider geographic scope. Negative market stealing effect nevertheless has no spatial boundary. Policy implications of these findings are discussed.

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“…Bai, Li and Wang (1997) proved that since the function of minimum input value is strictly convex, it is more costly to produce the next unit of output. Bai et al (2000) and Bai, Lu and Tao (2006) (2016) is a suitable TFP index number for estimating the productivity of Vietnamese manufacturing SOEs.…”

Section: Vietnamese Manufacturing Soesmentioning

confidence: 99%

Vietnam State-owned Enterprise (SOE) Reform: A productivity and efficiency perspective

Nguyen¹

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State-owned enterprise (SOE) reform has been one of the important pillars of the overall economic renovation of Vietnam since 1986. Vietnamese SOEs have been moving from a cumbersome commanddriven economic system to a market-driven system. This thesis measures changes in the productivity of Vietnamese manufacturing SOEs over a ten year period. The focus is on possible productivity The empirical results indicate that the average annual rate of TFP growth across the 24 sectors over the full sample was 5.1%. Beverage SOEs had the highest productivity growth rate at 13.98% per year. There was also a large variation in productivity and efficiency measures across different sectors.The refined petroleum products sector was found to be the most technically efficient (94.08 % on average). The lowest technical efficiency levels were found in the beverage (90.79%), leather and related products (90.41%), wearing apparel (90.49%) and transport equipment (91.26%). Average technical efficiency across firms in the sample reached a maximum in 2008 and then declined at an average rate of 0.56% per year from 2009 to 2011. Results for SOEs were similar to results for private firms. The empirical results show that changes in output-oriented scale-mix efficiency, and changes in environmental conditions, are the main drivers of productivity change in Vietnamese manufacturing SOEs whose ownership type was changed into private firms.Results of second-stage regression indicate that the higher productivity levels of the privatized SOEs are relative to longer post-privatization periods. This suggests that one of the best policy options to improve productivity of manufacturing SOEs is to privatize them within a short span of time. Additionally, sectoral productivity analysis in major manufacturing sectors indicates a link between productivity improvements and export-oriented sectors. These outcomes suggest the government should implement policies that promote privatization of these sectors.ii Declaration by authorThis thesis is composed of my original work, and contains no material previously published or written by another person except where due reference has been made in the text. I have clearly stated the contribution by others to jointly-authored works that I have included in my thesis.

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A Multitask Theory of State Enterprise Reform

Cited by 284 publications

References 16 publications

Determinants of entrepreneurial activities in China

Determinants of entrepreneurial activities in China

FDI technology spillovers, geography, and spatial diffusion

Vietnam State-owned Enterprise (SOE) Reform: A productivity and efficiency perspective

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