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State-owned enterprise reform in China: The new structural economics perspective

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  • Lin, Justin Yifu

Abstract

Based on the perspective of new structural economics, this paper reviews each stage of China's state-owned enterprise reform, summarizes their main features, and argues that the root of state-owned enterprise's low efficiency and soft budget constraints is their strategic and social policy burdens. According to the state-owned enterprise's existing situation, the paper provides suggestions for deepening its reform.

Suggested Citation

  • Lin, Justin Yifu, 2021. "State-owned enterprise reform in China: The new structural economics perspective," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 106-111.
    • Handle: RePEc:eee:streco:v:58:y:2021:i:c:p:106-111
    DOI: 10.1016/j.strueco.2021.05.001
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    References listed on IDEAS

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    1. Hart, Oliver, 1995. "Corporate Governance: Some Theory and Implications," Economic Journal, Royal Economic Society, vol. 105(430), pages 678-689, May.
    2. Ju, Jiandong & Lin, Justin Yifu & Wang, Yong, 2015. "Endowment structures, industrial dynamics, and economic growth," Journal of Monetary Economics, Elsevier, vol. 76(C), pages 244-263.
    3. János Kornai, 2014. "The soft budget constraint," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
    4. Li, Wei, 1997. "The Impact of Economic Reform on the Performance of Chinese State Enterprises, 1980-1989," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 1080-1106, October.
    5. Justin Yifu Lin, 2011. "New Structural Economics: A Framework for Rethinking Development," The World Bank Research Observer, World Bank, vol. 26(2), pages 193-221, August.
    6. Guofu Tan & Justin Yifu Lin, 1999. "Policy Burdens, Accountability, and the Soft Budget Constraint," American Economic Review, American Economic Association, vol. 89(2), pages 426-431, May.
    7. Lin, Justin Yifu & Cai, Fang & Li, Zhou, 1998. "Competition, Policy Burdens, and State-Owned Enterprise Reform," American Economic Review, American Economic Association, vol. 88(2), pages 422-427, May.
    8. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
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    Cited by:

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    2. Pan, Xia & Cheng, Wenyin & Gao, Yuning, 2022. "The impact of privatization of state-owned enterprises on innovation in China: A tale of privatization degree," Technovation, Elsevier, vol. 118(C).
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    4. Liu, Xiaojie & Shen, Jim Huangnan & Deng, Kent, 2022. "Endowment Structure, property rights and reforms of large state-owned enterprises (SOEs) in China: Past, present and future," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 675-692.
    5. Zhou, Fengxiu & Wen, Huwei, 2022. "Trade policy uncertainty, development strategy, and export behavior: Evidence from listed industrial companies in China," Journal of Asian Economics, Elsevier, vol. 82(C).
    6. Fandi Yang & Peng Yuan & Gongxiong Jiang, 2022. "Knowledge Spillovers, Institutional Environment, and Entrepreneurship: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-27, November.
    7. Huang, Junbing & Lian, Shijia & Qu, Ran & Luan, Bingjiang & Wang, Yajun, 2023. "Investigating the role of enterprises' property rights in China's provincial industrial energy intensity," Energy, Elsevier, vol. 282(C).
    8. Zhao, Nan & Liu, Xiaojie & Zhang, Zizhe, 2022. "Does competition from the informal sector affect firms’ energy intensity? Evidence from China," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 130-142.
    9. Mingyue Fang & Rui Ruan, 2023. "State‐owned Enterprises in China as Macroeconomic Stabilizers: Their Special Function in Times of Economic Policy Uncertainty," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(5), pages 87-115, September.
    10. Qiao, Sen & Zhao, Dong Hao & Guo, Zi Xin & Tao, Zhang, 2022. "Factor price distortions, environmental regulation and innovation efficiency: An empirical study on China's power enterprises," Energy Policy, Elsevier, vol. 164(C).
    11. Li, Quan & Sun, Haodan & Tao, Yunqing & Ye, Yongwei & Zhan, Kaiyan, 2023. "The fault-tolerant and error-correction mechanism and capital allocation efficiency of state-owned Enterprises in China," Pacific-Basin Finance Journal, Elsevier, vol. 80(C).
    12. Wang, Jinbo & Ran, Maosheng & Huang, Qing & Li, Wanli, 2022. "Nationalization of private enterprises and default risk: Evidence from mixed-ownership reform in China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 534-553.
    13. Hua Feng & Fengyan Wang & Guomin Song & Lanlan Liu, 2022. "Digital Transformation on Enterprise Green Innovation: Effect and Transmission Mechanism," IJERPH, MDPI, vol. 19(17), pages 1-31, August.

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