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Author: James Si Zeng
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
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Book Description
Despite China's effort to privatize many state-owned enterprises (SOEs) after 1978, SOEs remain a prevalent type of enterprise in contemporary China. There is a widespread belief that they are inefficient and they still exist because they have captured the government. This belief, however, does not fully explain why SOEs have been privatized in some sectors but not in others. This Article provides an efficiency explanation of SOEs in China. Applying the law and economic theory on the ownership of enterprise to state ownership, this Article innovatively conceptualizes the efficiency of SOEs as a tradeoff between two social costs: ownership costs and regulatory costs. SOEs generally have high ownership costs and thus are not common in many developed countries. However, in developing countries with weak regulatory capacity and legal institutions, they may help reduce regulatory costs, including the social costs associated with the enactment, alteration, and enforcement of regulatory rules, and those resulting from the failure to regulate enterprises adequately. The magnitude of regulatory costs in a specific country and industry, in turn, is significantly influenced by the regulatory institutions within which the enterprises operate. An important implication is that refining regulatory regimes may reduce regulatory costs and - in part by facilitating privatization of SOEs - enhance social efficiency.
Author: James Si Zeng
Publisher:
ISBN:
Category :
Languages : en
Pages : 62
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Book Description
Despite China's effort to privatize many state-owned enterprises (SOEs) after 1978, SOEs remain a prevalent type of enterprise in contemporary China. There is a widespread belief that they are inefficient and they still exist because they have captured the government. This belief, however, does not fully explain why SOEs have been privatized in some sectors but not in others. This Article provides an efficiency explanation of SOEs in China. Applying the law and economic theory on the ownership of enterprise to state ownership, this Article innovatively conceptualizes the efficiency of SOEs as a tradeoff between two social costs: ownership costs and regulatory costs. SOEs generally have high ownership costs and thus are not common in many developed countries. However, in developing countries with weak regulatory capacity and legal institutions, they may help reduce regulatory costs, including the social costs associated with the enactment, alteration, and enforcement of regulatory rules, and those resulting from the failure to regulate enterprises adequately. The magnitude of regulatory costs in a specific country and industry, in turn, is significantly influenced by the regulatory institutions within which the enterprises operate. An important implication is that refining regulatory regimes may reduce regulatory costs and - in part by facilitating privatization of SOEs - enhance social efficiency.
Author: Mr. Ernesto Ramirez Rigo
Publisher: International Monetary Fund
ISBN: 1513594087
Category : Business & Economics
Languages : en
Pages : 153
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Book Description
Prior to the COVID-19 shock, the key challenge facing policymakers in the Middle East, North Africa, and Central Asia region was how to generate strong, sustainable, job-rich, inclusive growth. Post-COVID-19, this challenge has only grown given the additional reduction in fiscal space due to the crisis and the increased need to support the recovery. The sizable state-owned enterprise (SOE) footprint in the region, together with its cost to the government, call for revisiting the SOE sector to help open fiscal space and look for growth opportunities.
Author: Richard Meade
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
Electricity reform typically involves little regard to the possibility that customer ownership might substitute for the "protections" of state ownership, or for investor ownership under regulatory safeguards, where market power is a concern. Recognising that regulation is itself costly, and that market contracting, ownership and regulation are partly substitutable forms of governance, this paper argues that state ownership of natural monopolies in electricity distribution (and transmission) is inefficient. Unregulated customer ownership of these activities is superior, better aligning monopolist and customer incentives at lower cost. Even unregulated investor ownership of distribution is predicted to better balance the costs of market contracting, ownership and regulation than does state ownership. Regulation of customer-owned distribution (and transmission) is also shown to be inefficient, imposing regulatory costs without compensatory gains. Examples of widespread customer ownership of distribution in New Zealand, and of distribution and sometimes transmission in the US, illustrates how such ownership has evolved as an effective substitute for regulation. Policy implications are drawn.
Author: Roselyn Hsueh Romano
Publisher: Cornell University Press
ISBN: 080146286X
Category : Political Science
Languages : en
Pages : 321
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Book Description
Today's China is governed by a new economic model that marks a radical break from the Mao and Deng eras; it departs fundamentally from both the East Asian developmental state and its own Communist past. It has not, however, adopted a liberal economic model. China has retained elements of statist control even though it has liberalized foreign direct investment more than any other developing country in recent years. This mode of global economic integration reveals much about China’s state capacity and development strategy, which is based on retaining government control over critical sectors while meeting commitments made to the World Trade Organization. In China's Regulatory State, Roselyn Hsueh demonstrates that China only appears to be a more liberal state; even as it introduces competition and devolves economic decisionmaking, the state has selectively imposed new regulations at the sectoral level, asserting and even tightening control over industry and market development, to achieve state goals. By investigating in depth how China implemented its economic policies between 1978 and 2010, Hsueh gives the most complete picture yet of China's regulatory state, particularly as it has shaped the telecommunications and textiles industries. Hsueh contends that a logic of strategic value explains how the state, with its different levels of authority and maze of bureaucracies, interacts with new economic stakeholders to enhance its control in certain economic sectors while relinquishing control in others. Sectoral characteristics determine policy specifics although the organization of institutions and boom-bust cycles influence how the state reformulates old rules and creates new ones to maximize benefits and minimize costs after an initial phase of liberalization. This pathbreaking analysis of state goals, government-business relations, and methods of governance across industries in China also considers Japan’s, South Korea’s, and Taiwan’s manifestly different approaches to globalization.
Author: Ioannis Nicolaos Kessides
Publisher: World Bank Publications
ISBN:
Category : Business & Economics
Languages : en
Pages : 328
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Book Description
Electricity, natural gas, telecommunications, railways, and water supply, are often vertically and horizontally integrated state monopolies. This results in weak services, especially in developing and transition economies, and for poor people. Common problems include low productivity, high costs, bad quality, insufficient revenue, and investment shortfalls. Many countries over the past two decades have restructured, privatized and regulated their infrastructure. This report identifies the challenges involved in this massive policy redirection. It also assesses the outcomes of these changes, as well as their distributional consequences for poor households and other disadvantaged groups. It recommends directions for future reforms and research to improve infrastructure performance, identifying pricing policies that strike a balance between economic efficiency and social equity, suggesting rules governing access to bottleneck infrastructure facilities, and proposing ways to increase poor people's access to these crucial services.
Author: Jerome J. Hanus
Publisher:
ISBN:
Category : Federal government
Languages : en
Pages : 22
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Book Description
Author: Jerry Brito
Publisher: Mercatus Center at George Mason University
ISBN: 0983607737
Category : Law
Languages : en
Pages : 128
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Book Description
Federal regulations affect nearly every area of our lives and interest in them is increasing. However, many people have no idea how regulations are developed or how they have an impact on our lives. Regulation: A Primer by Susan Dudley and Jerry Brito provides an accessible overview of regulatory theory, analysis, and practice. The Primer examines the constitutional underpinnings of federal regulation and discusses who writes and enforces regulation and how they do it. Published by the Mercatus Center at George Mason University, it also provides insights into the different varieties of regulation and how to analyze whether a regulatory proposal makes citizens better or worse off. Each chapter discusses key aspects of regulation and provides further readings for those interested in exploring these topics in more detail.
Author: Markus Aßner
Publisher: GRIN Verlag
ISBN: 3638782123
Category : Business & Economics
Languages : en
Pages : 33
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Book Description
Seminar paper from the year 2004 in the subject Economy - Theory of Competition, Competition Policy, grade: 1, University of Ulster (School of Business Organisation and Management), course: Business Economics, 12 entries in the bibliography, language: English, abstract: Index Introduction 1. The market forces argument 4 2. Breakdown of the market forces argument in natural monopolies 6 3. Economic key issues which regulators of privatised industries should consider 8 4. References 12 Introduction This essay covers some issues of privatisation and regulation. It is divided into three parts. Part one gives a brief outline of the author s understanding of the market forces argument for privatisation. In the second part it is explained what is meant by a natural monopoly and why the market forces argument does not hold if an industry is a natural monopoly. The third part then discusses which economic key issues should be considered by the regulatory body of a privatised industry. Privatisation is the transfer of public ownership away from the state to private ownership. Regulation is a limitation on the behaviour of firms or organizations, imposed by the government. From the view of competition it is the aim to remove market distortions which are caused by public enterprises and regulations (Case K. et al. 1999: 356.)
Author: OECD
Publisher: OECD Publishing
ISBN: 9264116575
Category :
Languages : en
Pages : 155
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Book Description
This report encourages governments to “think big” about the relevance of regulatory policy and assesses the recent efforts of OECD countries to develop and deepen regulatory policy and governance.
Author: Nancy L. Rose
Publisher: University of Chicago Press
ISBN: 022613816X
Category : Business & Economics
Languages : en
Pages : 619
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Book Description
The past thirty years have witnessed a transformation of government economic intervention in broad segments of industry throughout the world. Many industries historically subject to economic price and entry controls have been largely deregulated, including natural gas, trucking, airlines, and commercial banking. However, recent concerns about market power in restructured electricity markets, airline industry instability amid chronic financial stress, and the challenges created by the repeal of the Glass-Steagall Act, which allowed commercial banks to participate in investment banking, have led to calls for renewed market intervention. Economic Regulation and Its Reform collects research by a group of distinguished scholars who explore these and other issues surrounding government economic intervention. Determining the consequences of such intervention requires a careful assessment of the costs and benefits of imperfect regulation. Moreover, government interventions may take a variety of forms, from relatively nonintrusive performance-based regulations to more aggressive antitrust and competition policies and barriers to entry. This volume introduces the key issues surrounding economic regulation, provides an assessment of the economic effects of regulatory reforms over the past three decades, and examines how these insights bear on some of today’s most significant concerns in regulatory policy.
