Please wait a minute...
Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front. Econ. China    2006, Vol. 1 Issue (1) : 39-47    https://doi.org/10.1007/s11459-005-0007-9
|
SOE Reform under Oligopolistic Market Structure: The Optimal Choice of State Shares
SUN Qunyan1, LI Jie1, ZHANG Anming2
1.Lingnan College, Sun Yat-Sen University, PRC; 2.Commerce and Business Administration, University of British Columbia, Canada
 Download: PDF(124 KB)  
 Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
Abstract This paper examines the effect of the change of state shares in a state-owned enterprise (SOE) on the efficiency of the whole society and the payoff of the government. This issue is addressed by setting up a mixed oligopolistic competition model and dividing the analysis into two cases: closed economy and open economy. The basic results are as follows: If the relative production efficiency of an SOE is too low, complete state ownership is not optimal, and privatization will be a necessary step; however, if the relative production efficiency of an SOE is not too low, complete privatization is not optimal both for the government and from the perspective of social welfare. The results can, to a certain extent, provide theoretical support to the government s idea on the SOE reform.
Issue Date: 05 March 2006
 Cite this article:   
LI Jie,SUN Qunyan,ZHANG Anming. SOE Reform under Oligopolistic Market Structure: The Optimal Choice of State Shares[J]. Front. Econ. China, 2006, 1(1): 39-47.
 URL:  
http://academic.hep.com.cn/fec/EN/10.1007/s11459-005-0007-9
http://academic.hep.com.cn/fec/EN/Y2006/V1/I1/39
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed