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Stake-holder firms and the reform of local public finance in China

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  • Anderson, Ronald W.

Abstract

Since 1978 China has developed strongly using a particular form of capitalism which has relied upon close relations between private enterprise and the state and the continuing presence of state-owned enterprise, both centrally and at local levels. This model has been criticised as being responsible for the rapid rise of debt since 2010 and the slow-down of growth more recently. Using examples taken from Guangdong Province in south China I illustrate the workings of this system and highlight the challenges to adapting it to support China's growth ambitions for the coming decades.

Suggested Citation

  • Anderson, Ronald W., 2021. "Stake-holder firms and the reform of local public finance in China," LSE Research Online Documents on Economics 118892, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:118892
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    File URL: http://eprints.lse.ac.uk/118892/
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    References listed on IDEAS

    as
    1. Chen, Zhuo & He, Zhiguo & Liu, Chun, 2020. "The financing of local government in China: Stimulus loan wanes and shadow banking waxes," Journal of Financial Economics, Elsevier, vol. 137(1), pages 42-71.
    2. Alexander Ljungqvist & Donghua Chen & Dequan Jiang & Haitian Lu & Mingming Zhou, 2015. "State Capitalism vs. Private Enterprise," NBER Working Papers 20930, National Bureau of Economic Research, Inc.
    3. Nicholas R. Lardy, 2014. "Markets over Mao: The Rise of Private Business in China," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6932, October.
    4. Nicholas R. Lardy, 2019. "The State Strikes Back: The End of Economic Reform in China?," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 7373, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    state capitalism; debt overhang; infrastructure; local public finance; enterprise reform;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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