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On Privatisation and Property Rights: Should China Go Down the Road of Outright Privatisation?

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  • Richard Sanders
  • Yang Chen
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    Abstract

    Fierce debate is ongoing in China concerning the appropriate role for the private sector in the current stage of reform and enterprise restructuring. There are many economists, both within China and without, who argue that China should now increase both the scale and pace of privatisation and reduce the barriers to private sector involvement in the remaining large-sized State-Owned Enterprises as a matter of urgency. This paper argues, however, that on both theoretical and empirical grounds, wholesale privatisation in China should not be adopted, that 'fuzzy' property rights have served China well in the last twenty years of reform and that the appropriate boundary between the public and private sectors should be drawn pragmatically and on a case-by-case basis.

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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 3 (2005)
    Issue (Month): 3 ()
    Pages: 231-245

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    Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:231-245

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    Related research

    Keywords: JEL Classifications: A11; B13; D23; H42; L32; L33; P20;

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    1. Stephan Kuhnert, 2001. "An Evolutionary Theory of Collective Action: Schumpeterian Entrepreneurship for the Common Good," Constitutional Political Economy, Springer, vol. 12(1), pages 13-29, March.
    2. Stanley Fischer & Alan Gelb, 1991. "The Process of Socialist Economic Transformation," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 91-105, Fall.
    3. Tian, Guoqiang, 2000. "Property Rights and the Nature of Chinese Collective Enterprises," Journal of Comparative Economics, Elsevier, vol. 28(2), pages 247-268, June.
    4. Kornai, Janos, 1993. "The Evolution of Financial Discipline under the Postsocialist System," Kyklos, Wiley Blackwell, vol. 46(3), pages 315-36.
    5. Kornai, Janos, 1988. "Individual freedom and reform of the socialist economy," European Economic Review, Elsevier, vol. 32(2-3), pages 233-267, March.
    6. John Vickers & George Yarrow, 1991. "Economic Perspectives on Privatization," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 111-132, Spring.
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