Paradox of Efficiency in Chinese State-Owned Enterprises (Empirical Analysis and Theoretical Explanation)

Author: Li Liying
Publisher:
Publish Date: 2006-09-01
Features: Since the reform, the productivity of China's state-owned enterprises has improved, but at the same time, their profitability has generally declined. This is precisely the efficiency paradox issue that this book specifically addresses. Using empirical analysis as its research method, the book systematically examines the impact of major reform measures implemented in different stages after the reform on the efficiency and profitability of state-owned enterprises. It finds that early measures such as decentralizing power and profits to state-owned enterprises, as well as establishing modern enterprise systems in the mid-1990s, effectively promoted the increase in productivity but did not achieve consistent results in improving profitability. This book aims to explain this outcome by incorporating the impact of major reform measures on productivity and profitability into a unified theoretical framework. It argues that the fundamental reason for the efficiency paradox lies in the changes in the internal interest distribution structure of state-owned enterprises, which occurred under the intensification of market competition and the reform process.