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International Trade and Investment by State Enterprises

Author

Listed:
  • Przemyslaw Kowalski

    (OECD)

  • Kateryna Perepechay

    (OECD)

Abstract

The recent surge in competition between state and private firms in global markets calls for a reflection on how to minimise any potentially distortionary effects on international trade and investment created by state enterprises while at the same time restraining any undue protectionist policy responses directed at them. This paper provides an assessment of the extent and nature of existing and potential problems as well as a stocktaking of regulatory approaches that can be used to alleviate them. The new empirical evidence on the extent and nature of existing problems presented in this paper comes from the OECD Business Survey on State Influence on Competition in International Markets conducted on 157 firms in 2014. The characterisation of the regulatory landscape draws on the information contained in the OECD Database on National Practices and Regulations with Respect to State Enterprises which comprises 41 indicators covering relevant practices and regulations across 43 countries. In conclusion, cross-border effects of state enterprises remain an important policy issue but views on how to obtain a more level international playing field differ across countries. Further consideration of the definition of entities which should be the focus of guidance of potential international disciplines would be an important area for future exploration and, crucially, would require greater transparency both from the governments and the entities under their influence. These discussions should not be limited only to state-owned entities, but should be extended to a broader spectrum of state firms. In the meantime, it is important that governments neither use state enterprises to influence competition in international markets, nor unduly discriminate against foreign state enterprises that trade and invest according to market principles.

Suggested Citation

  • Przemyslaw Kowalski & Kateryna Perepechay, 2015. "International Trade and Investment by State Enterprises," OECD Trade Policy Papers 184, OECD Publishing.
  • Handle: RePEc:oec:traaab:184-en
    as

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    File URL: https://doi.org/10.1787/5jrtcr9x6c48-en
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    Citations

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    Cited by:

    1. Luc Bernier & Massimo Florio & Johan Willner, 2016. "Rationales, performance and governance of public entreprises. Editorial introduction," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2016(3), pages 5-10.
    2. repec:kap:regeco:v:55:y:2019:i:3:d:10.1007_s11149-019-09388-7 is not listed on IDEAS
    3. Del Bo, Chiara D. & Ferraris, Matteo & Florio, Massimo, 2017. "Governments in the market for corporate control: Evidence from M&A deals involving state-owned enterprises," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 89-109.
    4. repec:eee:worbus:v:53:y:2018:i:5:p:668-681 is not listed on IDEAS

    More about this item

    Keywords

    business surveys; international investment; international trade; WTO;

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F6 - International Economics - - Economic Impacts of Globalization
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H1 - Public Economics - - Structure and Scope of Government
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H4 - Public Economics - - Publicly Provided Goods
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • H8 - Public Economics - - Miscellaneous Issues
    • K2 - Law and Economics - - Regulation and Business Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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