Jun 16, 2014

Reforming China's Monopolies

From a paper by Peijun Duan & Anthony Saich
A survey conducted in Guangdong province reveals that SOEs [State Owned Enterprises] can enter more than 80 industries, whereas foreign companies can enter only 60 and the private sector only 40.4 p. 1
There are two main views on SOEs in China: one claims that they have been instrumental for growth and that they challenge the "western" growth model. A second one claims that they are the product of path dependence, but that if they were privatised efficiency would increase and growth would reach even further. 

The authors support the second view.  

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