Topic_6_Econ162bw

Topic_6_Econ162bw - Economics 162 The Economy of China...

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Unformatted text preview: Economics 162 The Economy of China Topic 6 Chinas Industry Professor David Roland-Holst Department of Agricultural and Resource Economics Tuesday and Thursday, 12:30-2PM, 10 Evans Hall Roland-Holst 2 Economics 162 Ownership Composition of Industrial Output (1978) Roland-Holst 3 Economics 162 Ownership Composition of Industrial Output (2000) Roland-Holst 4 Economics 162 Economics 162 Economics 162 What Is in the Non-State Sector? Firms that are not Traditional State-Owned Enterprises (SOEs) Stock companies in which the state has controlling shares (called state controlled enterprises) Types of ownership forms in the non-state sector Private ownership firms Non-private ownership firms (collectives and cooperatives) Roland-Holst 5 Economics 162 Economics 162 Economics 162 Varieties of Non-State Ownership Forms Private ownership Individual family business Private companies hiring more than 8 employees Foreign invested Share holding companies (private parties have controlling shares) Listed on the exchange Not listed Non-private (but also non-state) ownership Rural Township-Village Enterprises (TVEs): rural collectives Urban collectives Joint ventures with TVEs or collectives controlling Share holding companies (neither the state nor private parties have controlling shares) Roland-Holst 6 Economics 162 Economics 162 Economics 162 Two Stages of Development First Stage: from 1978 to mid-1990s Slow start of private ownership firms Very rapid growth of collective firms, especially rural TVEs No privatization of collectives Second Stage: from mid-1990s to present Rapid growth of private ownership firms Fast privatization of collective firms Fast emergence of share holding ownership forms Publicly traded stock companies Closely held stock companies Roland-Holst 7 Economics 162 Economics 162 Economics 162 From 1978 to mid-1990s The major growth engine: rural industry Most new non-state enterprises in other planned economies under som were in service sector, not in industry Most new industrial enterprises in developing countries are not in rural areas Rural enterprises = TVEs + rural private enterprises There are separate (may be related) reasons for rapid growth of rural industry and rapid growth of TVEs Roland-Holst 8 Ownership Classification Rural Enterprises Urban Enterprises State Ownership N/A State-Owned Enterprises (SOE) Collective Ownership Township-Village Enterprises (TVEs) Urban Collective Enterprises Private Ownership varieties of private enterprises varieties of private enterprises Roland-Holst 9 Share of Industrial Output by Ownership 1978 1993 Changes SOEs 78% 43%-35% Non-State 22% 57% +35% Urban 13% 10%-3% Rural 9% 36% +27% TVEs 9% 27% +18% Private 0% 9% +9% Others 0% 10% +10% Roland-Holst 10 Economics 162 Rural Enterprise Employment (million) 20 40 60 80 100 120 140 1 9 7 8 1 9 8 1 9 8 2 1 9 8 4 1 9 8 6 1 9 8 8 1 9 9 1 9 9 2 1 9 9 4 Rural employment TVE employment Roland-Holst...
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Topic_6_Econ162bw - Economics 162 The Economy of China...

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