A Model of China's State Capitalism
A Model of China's State Capitalism
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DOI：
10.2139/ssrn.2061521
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发表时间：
2015-08
期刊：
影响因子：
--
通讯作者：
Xi Li;Xuewen Liu;Yong Wang
中科院分区：
文献类型：
--
作者：
Xi Li;Xuewen Liu;Yong Wang
This paper documents a hallmark feature of China’s state capitalism as the state controlling the economy in a vertical structure: State-owned enterprises (SOEs) monopolize key industries in the upstream, whereas the downstream industries are largely open to private competition. We develop a general-equilibrium model to show that this unique vertical structure, when combined with openness and labor abundance, is critical in explaining the puzzling fact that China’s SOEs outperformed non-SOEs in the past decade while the opposite was true in the 1990s. We show how the upstream SOEs extract rents from the liberalized downstream industries in the process of industrialization and globalization. The unprecendented prosperity of SOEs is shown to be an e¢ ciency-undermining symptom of the incompleteness of market-oriented reforms rather � � .
