IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/24324.html
   My bibliography  Save this paper

The institution of a stockmarket in a socialist economy: Notes on the Chinese economic reform program

Author

Listed:
  • Singh, A.

Abstract

This paper is concerned with three questions: (a) how would a stockmarket help economic and industrial development in a country like China; (b) will a stockmarket be system-compatible; and (c) if a full-fledged stockmarket is indeed introduced in a socialist economy, can its “negative influences” (speculation, booms and crashes) be minimized? These issues are examined analytically with the help of empirical evidence of stockmarket behavior in advanced and newly industrializing economies. Although the paper considers the specific case of China, the argument is more general and has application to other developing as well as centrally planned economies.

Suggested Citation

  • Singh, A., 1990. "The institution of a stockmarket in a socialist economy: Notes on the Chinese economic reform program," MPRA Paper 24324, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24324
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/24324/1/MPRA_paper_24324.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mayer, Colin, 1988. "New issues in corporate finance," European Economic Review, Elsevier, vol. 32(5), pages 1167-1183, June.
    2. Tibor Scitovsky, 1954. "Two Concepts of External Economies," Journal of Political Economy, University of Chicago Press, vol. 62(2), pages 143-143.
    3. Summers, Lawrence H, 1986. "Does the Stock Market Rationally Reflect Fundamental Values?," Journal of Finance, American Finance Association, vol. 41(3), pages 591-601, July.
    4. Alan Hughes & Ajit Singh, 1987. "Takeovers And The Stock Market," Contributions to Political Economy, Cambridge Political Economy Society, vol. 6(1), pages 73-85.
    5. Nuti, D. M., 1988. "Competitive valuation and efficiency of capital investment in the socialist economy," European Economic Review, Elsevier, vol. 32(2-3), pages 459-464, March.
    6. Whittington, G, 1972. "The Profitability of Retained Earnings," The Review of Economics and Statistics, MIT Press, vol. 54(2), pages 152-160, May.
    7. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73(2), pages 110-110.
    8. Cable, John R, 1985. "Capital Market Information and Industrial Performance: The Role of West German Banks," Economic Journal, Royal Economic Society, vol. 95(377), pages 118-132, March.
    9. Stiglitz, Joseph E, 1985. "Credit Markets and the Control of Capital," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(2), pages 133-152, May.
    10. Henry G. Manne, 1965. "Mergers and the Market for Corporate Control," Journal of Political Economy, University of Chicago Press, vol. 73(4), pages 351-351.
    11. Cosh, A. D. & Hughes, A. & Lee, K. & Singh, A., 1989. "Institutional investment, mergers and the market for corporate control," International Journal of Industrial Organization, Elsevier, vol. 7(1), pages 73-100, March.
    12. A. D. Cosh & Alan Hughes & Ajit Singh, 1989. "Openness, Innovation and Share Ownership: The Changing Structure of Financial Markets," WIDER Working Paper Series wp-1989-074, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Singh, Ajit, 1991. "The stock market and economic development: Should developing countries encourage stock markets?," MPRA Paper 53881, University Library of Munich, Germany, revised 16 Dec 1991.
    2. Ajit Singh, 1996. "Emerging Markets, Industrialisation and Economic Development," Palgrave Macmillan Books, in: Sunanda Sen (ed.), Financial Fragility, Debt and Economic Reforms, chapter 8, pages 153-173, Palgrave Macmillan.
    3. Ajit Singh, 1999. "Should Africa promote stock market capitalism?," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 343-365.
    4. Singh, Ajit, 1994. "Openness and the market friendly approach to development: Learning the right lessons from development experience," World Development, Elsevier, vol. 22(12), pages 1811-1823, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Allen, Franklin & Gale, Douglas, 1995. "A welfare comparison of intermediaries and financial markets in Germany and the US," European Economic Review, Elsevier, vol. 39(2), pages 179-209, February.
    2. Andreani, Ettore & Neuberger, Doris, 2004. "Relationship finance by banks and non-bank institutional investors: A review within the theory of the firm," Thuenen-Series of Applied Economic Theory 46, University of Rostock, Institute of Economics.
    3. Moerland, Pieter W., 1995. "Alternative disciplinary mechanisms in different corporate systems," Journal of Economic Behavior & Organization, Elsevier, vol. 26(1), pages 17-34, January.
    4. Singh, Ajit, 1994. "Openness and the market friendly approach to development: Learning the right lessons from development experience," World Development, Elsevier, vol. 22(12), pages 1811-1823, December.
    5. Koetter, Michael & Nestmann, Thorsten & Stolz, Stéphanie & Wedow, Michael, 2004. "Structures and Trends in German Banking," Kiel Working Papers 1225, Kiel Institute for the World Economy (IfW Kiel).
    6. Ajit Singh, 1996. "Emerging Markets, Industrialisation and Economic Development," Palgrave Macmillan Books, in: Sunanda Sen (ed.), Financial Fragility, Debt and Economic Reforms, chapter 8, pages 153-173, Palgrave Macmillan.
    7. Singh, Ajit, 1991. "The stock market and economic development: should developing countries encourage stock markets?," MPRA Paper 54927, University Library of Munich, Germany.
    8. Luc Renneboog & Peter G. Szilagyi, 2008. "Corporate Restructuring and Bondholder Wealth," European Financial Management, European Financial Management Association, vol. 14(4), pages 792-819, September.
    9. William R. Emmons & Frank A. Schmid, 1998. "Universal banking, allocation of control rights, and corporate finance in Germany," Working Papers 1998-001, Federal Reserve Bank of St. Louis.
    10. Ajit Singh, 2003. "Competition, corporate governance and selection in emerging markets," Economic Journal, Royal Economic Society, vol. 113(491), pages 443-464, November.
    11. Drobetz, W. & Momtaz, Paul P., 2020. "Antitakeover Provisions and Firm Value: New Evidence from the M&A Market," Journal of Corporate Finance, Elsevier, vol. 62(C).
    12. Gugler, Klaus & Mueller, Dennis C. & Yurtoglu, B. Burcin, 2008. "Insider ownership, ownership concentration and investment performance: An international comparison," Journal of Corporate Finance, Elsevier, vol. 14(5), pages 688-705, December.
    13. Gietzmann, M. B. & Quick, R., 1998. "Capping auditor liability: The German experience," Accounting, Organizations and Society, Elsevier, vol. 23(1), pages 81-103, January.
    14. Oesterle, Michael-Jörg & Richta, Hannah Noriko & Fisch, Jan Hendrik, 2013. "The influence of ownership structure on internationalization," International Business Review, Elsevier, vol. 22(1), pages 187-201.
    15. Höpner, Martin, 2001. "Corporate governance in transition: Ten empirical findings on shareholder value and industrial relations in Germany," MPIfG Discussion Paper 01/5, Max Planck Institute for the Study of Societies.
    16. Till van Treeck, 2008. "The political economy debate on ‘financialisation’ – a macroeconomic perspective," IMK Working Paper 01-2008, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    17. Andy Cosh & Paul Guest & Alan Hughes, 2007. "UK Corporate Governance and Takeover Performance," Working Papers wp357, Centre for Business Research, University of Cambridge.
    18. Andy Cosh & Alan Hughes, 2008. "Takeovers after "Takeovers"," Working Papers wp363, Centre for Business Research, University of Cambridge.
    19. João A. C. Santos & Kristin E. Wilson, 2017. "Does Banks’ Corporate Control Lower Funding Costs? Evidence from US Banks’ Control Over Firms’ Voting Rights," Journal of Financial Services Research, Springer;Western Finance Association, vol. 51(3), pages 283-311, June.
    20. A. D. Cosh & Alan Hughes & Ajit Singh, 1989. "Openness, Innovation and Share Ownership: The Changing Structure of Financial Markets," WIDER Working Paper Series wp-1989-074, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    stockmarket; China; developing; socialist; economy; industrial;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • A10 - General Economics and Teaching - - General Economics - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24324. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.