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Bai, Chong-En; Lu, Jiangyong; Tao, Zhigang
The American economic review, 05/2006, Volume: 96, Issue: 2Journal Article
The reform of China's state-owned enterprises (SOEs) has been characterized by a gradual and selective approach. In fact there was not privatization at all until the mid-1990s, some 15 years after Chian started its economic reform. Despite years of economic reform, state ownership remains significant in the economy. In this paper a theory of China's SOE reform in China is offered, and predictions regarding the types of SOEs to be chosen for privatization and the results of privatization are made. Then empirical evidence is presented supporting the basic premise of the theory and its theoretical predictions.
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