IDEAS home Printed from https://ideas.repec.org/a/kap/netspa/v22y2022i3d10.1007_s11067-021-09540-x.html
   My bibliography  Save this article

State-Owned Enterprises’ Reforms and their Implications for the Resilience and Vulnerability of the Chinese Economy: Evidence from the Banking, Energy and Telecom Sectors

Author

Listed:
  • Roberto Cardinale

    (The American University in Cairo)

Abstract

This paper explores how policies of market liberalization and partial privatization of State-Owned Enterprises (SOEs) involved in the production and provision of key inputs – banking, energy and telecom – affect the vulnerability and resilience of an economy. SOEs’ response to such policy changes and their ability to operate under the new market conditions are crucial for maintaining quality and continuity in the supply of intermediate goods and services that underlie the functioning of the economy and society. The paper analyses this issue in the context of Chinese SOEs’ reforms. It finds that privatization and liberalization in China have been designed (i) to strengthen the economy’s resilience, as access to private capital and foreign markets has contributed to companies’ growth and to increase the stock and quality of critical infrastructure for the country; but also (ii) to minimize the vulnerabilities that arise from such policies, by envisaging measures against volatility in capital markets and the destabilizing effect of market competition through ad hoc regulation. The paper may prove relevant for the next steps of Chinese SOEs’ reforms and its findings might find applicability in other geographical contexts as well.

Suggested Citation

  • Roberto Cardinale, 2022. "State-Owned Enterprises’ Reforms and their Implications for the Resilience and Vulnerability of the Chinese Economy: Evidence from the Banking, Energy and Telecom Sectors," Networks and Spatial Economics, Springer, vol. 22(3), pages 489-514, September.
    • Handle: RePEc:kap:netspa:v:22:y:2022:i:3:d:10.1007_s11067-021-09540-x
    DOI: 10.1007/s11067-021-09540-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11067-021-09540-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11067-021-09540-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pollitt, M. & Yang, C-H. & Chen, H., 2017. "Reforming the Chinese Electricity Supply Sector: Lessons from International Experience," Cambridge Working Papers in Economics 1713, Faculty of Economics, University of Cambridge.
    2. Berdica, Katja, 2002. "An introduction to road vulnerability: what has been done, is done and should be done," Transport Policy, Elsevier, vol. 9(2), pages 117-127, April.
    3. Karen O'Brien & Siri Eriksen & Lynn P. Nygaard & Ane Schjolden, 2007. "Why different interpretations of vulnerability matter in climate change discourses," Climate Policy, Taylor & Francis Journals, vol. 7(1), pages 73-88, January.
    4. Reggiani, Aura & Nijkamp, Peter & Lanzi, Diego, 2015. "Transport resilience and vulnerability: The role of connectivity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 81(C), pages 4-15.
    5. A Erin Bass & Subrata Chakrabarty, 2014. "Resource security: Competition for global resources, strategic intent, and governments as owners," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(8), pages 961-979, October.
    6. Sanjeev Goyal, 2007. "Introduction to Connections: An Introduction to the Economics of Networks," Introductory Chapters, in: Connections: An Introduction to the Economics of Networks, Princeton University Press.
    7. Johannes M. Bauer, 2005. "Regulation and state ownership: conflicts and complementarities in eu telecommunications," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(2), pages 151-177, June.
    8. Roberto CARDINALE, 2017. "The Political-Economy Implications of the Transition from State-Owned to Mixed-Owned Enterprises: Evidence from the European Gas Sector," Departmental Working Papers 2017-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Robert Millward, 2011. "Public Enterprise In The Modern Western World: An Historical Analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 82(4), pages 375-398, December.
    10. Clò, Stefano & Fiorio, Carlo V. & Florio, Massimo, 2017. "The targets of state capitalism: evidence from M&A deals," European Journal of Political Economy, Elsevier, vol. 47(C), pages 61-74.
    11. Antonio Andreoni & Roberto Scazzieri, 2014. "Triggers of change: structural trajectories and production dynamics," Cambridge Journal of Economics, Oxford University Press, vol. 38(6), pages 1391-1408.
    12. Jingya Li & Ming-Hua Liu, 2019. "Interest rate liberalization and pass-through of monetary policy rate to bank lending rates in China," Frontiers of Business Research in China, Springer, vol. 13(1), pages 1-19, December.
    13. Tomoyuki Fukumoto & Masato Higashi & Yasunari Inamura & Takeshi Kimura, 2010. "Effectiveness of Window Guidance and Financial Environment -- In Light of Japan's Experience of Financial Liberalization and a Bubble Economy --," Bank of Japan Review Series 10-E-4, Bank of Japan.
    14. Tatsuaki Kuroda, 2015. "A Model of Stratified Production Process and Spatial Risk," Networks and Spatial Economics, Springer, vol. 15(2), pages 271-292, June.
    15. Philippe BANCE & Gabriel OBERMANN, 2015. "Serving The General Interest With Public Enterprises - New Forms Of Governance And Trends In Ownership," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 86(4), pages 529-534, December.
    16. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    17. Dong, Xiucheng & Pi, Guanglin & Ma, Zhengwei & Dong, Cong, 2017. "The reform of the natural gas industry in the PR of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 582-593.
    18. Florio, Massimo, 2013. "Network Industries and Social Welfare: The Experiment that Reshuffled European Utilities," OUP Catalogue, Oxford University Press, number 9780199674855, Decembrie.
    19. Zheng, Shilin & Ward, Michael R., 2011. "The effects of market liberalization and privatization on Chinese telecommunications," China Economic Review, Elsevier, vol. 22(2), pages 210-220, June.
    20. Roberto Cardinale, 2017. "The European gas sector: political-economy implications of the transition from state-owned to mixed-owned enterprises," Chapters, in: Massimo Florio (ed.), The Reform of Network Industries, chapter 11, pages 220-234, Edward Elgar Publishing.
    21. Baranzini,Mauro L. & Rotondi,Claudia & Scazzieri,Roberto (ed.), 2015. "Resources, Production and Structural Dynamics," Cambridge Books, Cambridge University Press, number 9781107079090.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhu, Minglei & Huang, Haiyan & Ma, Weiwen, 2023. "Transformation of natural resource use: Moving towards sustainability through ICT-based improvements in green total factor energy efficiency," Resources Policy, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cardinale, Roberto & Belotti, Emanuele, 2022. "The rise of the shareholding state in Italy: A policy-oriented strategist or simply a shareholder? Evidence from the energy and banking sectors’ privatizations," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 52-60.
    2. Aura Reggiani, 2022. "The Architecture of Connectivity: A Key to Network Vulnerability, Complexity and Resilience," Networks and Spatial Economics, Springer, vol. 22(3), pages 415-437, September.
    3. Carole RENTSCH & Matthias FINGER, 2014. "Yes, no, maybe: the ambiguous relationships between State-owned enterprises and States," Departmental Working Papers 2014-05, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    4. Xu, Xiangdong & Qu, Kai & Chen, Anthony & Yang, Chao, 2021. "A new day-to-day dynamic network vulnerability analysis approach with Weibit-based route adjustment process," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 153(C).
    5. Milan Janić, 2018. "Modelling the resilience of rail passenger transport networks affected by large-scale disruptive events: the case of HSR (high speed rail)," Transportation, Springer, vol. 45(4), pages 1101-1137, July.
    6. Águeda Gil-López & Unai Arzubiaga & Elena San Román & Alfredo Massis, 2022. "The Visible Hand of corporate entrepreneurship in state-owned enterprises: a longitudinal study of the Spanish National Postal Operator," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1033-1071, September.
    7. Edwina E. Pereira & Albert E. Steenge, 2022. "Vulnerability and Resilience in the Caribbean Island States; the Role of Connectivity," Networks and Spatial Economics, Springer, vol. 22(3), pages 515-540, September.
    8. Asmund Rygh & Gabriel R. G. Benito, 2022. "Governmental goals and the international strategies of state-owned multinational enterprises: a conceptual discussion," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1155-1181, December.
    9. Mohamad Darayi & Kash Barker & Joost R. Santos, 2017. "Component Importance Measures for Multi-Industry Vulnerability of a Freight Transportation Network," Networks and Spatial Economics, Springer, vol. 17(4), pages 1111-1136, December.
    10. Cheung, Zeerim & Aalto, Eero & Nevalainen, Pasi, 2020. "Institutional Logics and the Internationalization of a State-Owned Enterprise: Evaluation of International Venture Opportunities by Telecom Finland 1987–1998," Journal of World Business, Elsevier, vol. 55(6).
    11. Sun, Daniel (Jian) & Guan, Shituo, 2016. "Measuring vulnerability of urban metro network from line operation perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 348-359.
    12. Zhu, Jingjing & Xu, Xiangdong & Wang, Zijian, 2023. "Economic evaluation of redundancy design for transportation networks under disruptions: Framework and case study," Transport Policy, Elsevier, vol. 142(C), pages 70-83.
    13. Clò, Stefano & Marvasi, Enrico & Ricchiuti, Giorgio, 2023. "State-owned Enterprises in the global market: Varieties of government control and internationalization strategies," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 25-40.
    14. Cardinale, Roberto, 2019. "The profitability of transnational energy infrastructure: A comparative analysis of the Greenstream and Galsi gas pipelines," Energy Policy, Elsevier, vol. 131(C), pages 347-357.
    15. Bagloee, Saeed Asadi & Sarvi, Majid & Wolshon, Brian & Dixit, Vinayak, 2017. "Identifying critical disruption scenarios and a global robustness index tailored to real life road networks," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 60-81.
    16. Jing Liu & Huapu Lu & He Ma & Wenzhi Liu, 2017. "Network Vulnerability Analysis of Rail Transit Plans in Beijng-Tianjin-Hebei Region Considering Connectivity Reliability," Sustainability, MDPI, vol. 9(8), pages 1-17, August.
    17. Biola K. Badmos & Ademola A. Adenle & Sampson K. Agodzo & Grace B. Villamor & Daniel K. Asare-Kyei & Laouali M. Amadou & Samuel N. Odai, 2018. "Micro-level social vulnerability assessment towards climate change adaptation in semi-arid Ghana, West Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(5), pages 2261-2279, October.
    18. Li, Tao & Rong, Lili & Yan, Kesheng, 2019. "Vulnerability analysis and critical area identification of public transport system: A case of high-speed rail and air transport coupling system in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 127(C), pages 55-70.
    19. Francesco Macheda, 2022. "Industrial Policies and State-Owned Enterprises: The Foundations of China’s Path Towards Decarbonization," L'industria, Società editrice il Mulino, issue 4, pages 581-619.
    20. Nogal, Maria & Morales Nápoles, Oswaldo & O’Connor, Alan, 2019. "Structured expert judgement to understand the intrinsic vulnerability of traffic networks," Transportation Research Part A: Policy and Practice, Elsevier, vol. 127(C), pages 136-152.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:netspa:v:22:y:2022:i:3:d:10.1007_s11067-021-09540-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.