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How Does Privatization Work in China?

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Author Info
Bai, Chong-En
Lu, Jiangyong
Tao, Zhigang

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Abstract

Using a comprehensive panel data set of China’s state-owned enterprises, we investigate the impacts of privatization, of different time sequences and extent of non-state ownership, on social welfare and firm performance. Attention has been focused on the sources of gain in firm performance and the long-run impacts of privatization. It is found that the privatization of China’s state-owned enterprises was achieved with limited compromise on social welfare responsibilities, and significant gain in firm performance was obtained by motivating the management and reducing agency cost at the management level.

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File URL: http://mpra.ub.uni-muenchen.de/6599/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6599.

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Date of creation: Aug 2007
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Handle: RePEc:pra:mprapa:6599

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L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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This page was last updated on 2008-11-17.


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