The Revival of Private Enterprise in China

This book examines the impact on China's private enterprises by obstacles to growth (such as borrowing restrictions, high taxes, ineffective legal protection and lack of technical and information support) and contrastingly examines how private enterprises can help China mitigate its macroeconomic problems, such as unemployment, income inequality, financial disintermediation and cyclical boom and bust. The re-emergence of private enterprises is one of the most important factors in China's recent economic development. They will play a key role in maintaining China's high growth rate and honouring its commitments to the WTO. Despite this they face obstacles to growth, including borrowing restrictions, high taxes, ineffective legal protection and lack of technical and information support. The authors in this book discuss these obstacles and propose measures for improving private enterprise development. They consider how private enterprises can help China mitigate its macroeconomic problems, such as unemployment, income inequality, financial disintermediation and cyclical boom and bust. Finally they examine the lessons to be learnt from other countries in promoting privatization.Contents: Introduction, Shuanglin Lin and Shunfeng Song; Part I Private Enterprises and Economic Development: Higher efficiencies or resource reallocation?, Li Gan, Shunfeng Song and Chiu Tan; Size of the state-owned sector and regional growth in China, Kerk L. Phillips and Shen Kunrong; Resource Allocation and economic growth in China, Shuanglin Lin. Part II Government and Private Enterprises: Government and private enterprises: Wenzhou experiences, Wenbo Wu; Property rights developments and productivity gains in China: a law and economics perspective, Xiaowen Tian and Vai Io Lo; Evolution of economic development: entrepreneurs and the state, Jack W. Hou; Private enterprises development and governmental functions, Jian He. Part III Financial Reforms, Openness, and Private Enterprise Development: What caused non-performing loan piling-up in the late 1990s, Ding Lu, Sandre M. Thangavelu and Qing Hu; Public venture capital: understanding the US and Chinese experiences, Changwen Zhao, Shuming Bao and Chunfa Chen; The challenges China's private enterprises face in the WTO, Shaomin Huang, Dongxia Wu and Grant D. Forsyth. Part IV Ownership Reforms and Privatization: The privatization of Russian state industry: some lessons for China, Marshall I. Goldman; Politician control, agency problems and ownership reform: evidence from China, Lixin Colin Xu, Tian Zhu and Yi-min Lin; Hospital ownership: what can China learn from the US experience?, Wei Yu. Part V Corporate Governance and Efficiency: Corporate governance and the development of private enterprises in China, Aimin Chen and Ping Li; The productivity efficiency of the state-owned enterprises in China, Chun-Chien Kuo; Prospect of private economy in China, Xiaowen Tian; Index. About the Author: Shuanglin Lin is Ward Lindley and Gorge Lindley Professor in the Department of Economics at the University of Nebraska, USA. Shunfeng Song is Professor in the Department of Economics, University of Nevada, USA.