Restructuring of Enterprises in Economic Transition: Property Rights Reform and Deregulation--Contemporary Economics Series

Author: Chen Zhao
Publisher:
Publish Date: 2004-04-01
Features: This book studies the determination of China's optimal economic restructuring path and its impact on the restructuring of state-owned enterprises and the adjustment of ownership structure. Current research in transition economics focuses on the restructuring of enterprises in countries undergoing economic transition. The theoretical contribution of this book lies in breaking the outdated framework that treats property rights reform, i.e., privatization, as the micro-mechanism of enterprise restructuring in transition economies. It examines the unique micro-mechanism of enterprise restructuring during China's transition from a planned economy to a market economy from a distinctive and novel perspective: the government relaxes employment controls on state-owned enterprises, allowing them to gradually release hidden unemployed workers. This demonstrates that property rights reform, i.e., privatization, is not a sufficient or necessary condition for the restructuring of state-owned enterprises, and China's gradual reforms are economically rational. The book is well-structured and formally presented, making significant contributions to the study of transition economics.