Partial privatization, producer services, and unemployment in developing countries

Abstract

Privatization of mixed-ownership firms (partially state-owned) is an important issue in developing countries. Literature has discussed the conflicts between the dual objectives of the mixed-ownership firms under the game theory approach, that is, pursuing profits and maintaining employments (

General Equilibrium Implications of Privatization on Environment and Unemployment in Vertically Related Markets

“…Equation (5) shows that in the labor market equilibrium, the wage rate in the agricultural sector equals the expected wage income in the two urban sectors, which is equal to the downward rigid wage rate multiplied by the probability of finding a job in these two sectors.…”

“…Meanwhile, many developing countries are plagued by significant environmental pollution and high levels of unemployment, particularly in urban areas. Privatization may significantly affect overall employment, sectoral output and environment under the vertical structure [5]. However, few papers investigate how privatization affects environment and unemployment and this paper tries to answer this question from a new perspective.…”

“…Wang and Li [12] analyze the privatization issue in vertically related markets and find the efficiency-enhancing effect is crucial for determining the impacts of privatization. Li and Jia [5] incorporate producer service sector into a three sector general equilibrium model, and investigate the impacts of partial privatization of the mixed-ownership firm in the manufacturing sector on output, unemployment, and social welfare in developing countries. Li and Jia [5] obtain that partial privatization lowers unemployment and raises output conditionally if the profit of producer service firms is zero in the long run.…”

“…Li and Jia [5] incorporate producer service sector into a three sector general equilibrium model, and investigate the impacts of partial privatization of the mixed-ownership firm in the manufacturing sector on output, unemployment, and social welfare in developing countries. Li and Jia [5] obtain that partial privatization lowers unemployment and raises output conditionally if the profit of producer service firms is zero in the long run. The paper arrives that partial privatization lowers the social welfare in the short run and enlarges social welfare in the long-run due to the mobility of capital.…”

Agricultural producer service subsidies and agricultural pollution: An approach based on endogenous agricultural pollution

“…Xi et al (2015) empirically studied the mode selection of China's urban producer services under the guidance of industrial efficiency improvement. Li and Jia (2021) studied the impact of the privatization of mixed enterprises on the economy in an economy including producer services. involved agricultural producer services, and analyzed the effects of migrant workers' remittances on the economy and environment under the background of agricultural producer service, constructing a preliminary discussion regarding the path of agricultural pollution, but they did not consider the relationship between agricultural producer service and agricultural pollution in the research framework.…”