Under New Ownership : Privatizing China's State-Owned Enterprises

by Yusuf, Shahid; Nabeshima, Kaoru; Perkins, Dwight H.

• ISBN13: 9780821356241
• ISBN10: 0821356240
• Format: Paperback
• Copyright: 2005-09-30
• Publisher: World Bank

Summary

This publication examines China's reform agenda for the privatisation of state-owned enterprises and surveys the results of privatisation measures in other industrialising economies. It draws upon recent survey data to assess changes in the ownership structure of state enterprises on management, governance, innovation and performance relative to other types of firms in China.

Table of Contents

Preface	vii
Abbreviations and Acronyms	xi
1 China's Industrial System: Where It Is Now, Where It Should Be Headed, and Why	1	(44)
The Changing Economic Landscape since 1979	3	(2)
The Impact of Reforms on Productivity and Growth	5	(15)
How Firms Can Succeed under the New Competition	20	(17)
Privatization: Wisdom from Experience	37	(3)
A Brief Overview of the Study	40	(5)
2 Reform in China, 1978-97	45	(32)
The Pre-Reform Industrial System	46	(5)
The First Step to Industrial Transformation	51	(4)
The Industrial Reform Initiatives, 1984-9	55	(14)
Renewal of the Reform Drive, 1992-7	69	(6)
What the First Round of Reforms Achieved	75	(2)
3 The Accelerated Change in Enterprise Ownership, 1997-2003	77	(38)
The Decision to Join the World Trade Organization	82	(4)
Corporatizing Chinese State Enterprises	86	(4)
The Formation of Business Groups	90	(6)
The Emergence and Significance of Nonstate Firms	96	(6)
Missing Market Institutions: The Weak Legal System	102	(3)
The Consequences of Reforms during 1997-2003	105	(10)
4 Chinese Ownership Reform in the East European Mirror	115	(36)
Industrial Reforms in Eastern Europe	116	(4)
Lessons from Eastern Europe	120	(11)
What China Can Learn from Other Transition Economies	131	(3)
Annex (Literature Review)	134	(17)
5 Assessing the Effects of Ownership Reform in China	151	(62)
Reform in the Chinese Urban Context	152	(2)
Data Description	154	(12)
Empirical Methodology	166	(3)
Policy Measures	169	(7)
Selection Bias	176	(6)
Empirical Tests and Findings	182	(8)
Role of Institutions and Management	190	(17)
Summary and Conclusions	207	(6)
6 Making Privatization Work	213	(28)
Taking Stock of China's Privatization	215	(3)
Assessing Gradualism	218	(1)
Conglomerate Group Formation as an Interim Strategy	219	(3)
Medium-Term Policy Objectives	222	(1)
Market Environment and the Role of the State	223	(4)
Industrial Consolidation	227	(2)
Competition Policy	229	(5)
Corporate Governance	234	(2)
Innovation Policy	236	(1)
Conclusion	237	(4)
References	241	(24)
Index	265	(18)
About the Authors	283