1st Edition

The Revival of Private Enterprise in China

By Shunfeng Song, Shuanglin Lin Copyright 2007

    The re-emergence of private enterprises is one of the most important factors in China's recent economic development. They will play a key role in maintaining China's high growth rate and honouring its commitments to the WTO. Despite this they face obstacles to growth, including borrowing restrictions, high taxes, ineffective legal protection and lack of technical and information support. The authors in this book discuss these obstacles and propose measures for improving private enterprise development. They consider how private enterprises can help China mitigate its macroeconomic problems, such as unemployment, income inequality, financial disintermediation and cyclical boom and bust. Finally they examine the lessons to be learnt from other countries in promoting privatization.

    1: Introduction; 1: Private Enterprises and Economic Development; 2: Higher Efficiencies or Resource Reallocation?; 3: Size of the State-Owned Sector and Regional Growth in China; 4: Resource Allocation and Economic Growth in China; 2: Government and Private Enterprises; 5: Government and Private Enterprises: Wenzhou Experiences; 6: Property Rights Developments and Productivity Gains in China: A Law and Economics Perspective; 7: Evolution of Economic Development: Entrepreneurs, Market, and the State; 8: Private Enterprise Development and Governmental Functions; 3: Financial Reforms, Openness, and Private Enterprise Development; 9: Causes of the Non-Performing Loan Piling-Up in the Late 1990s: A Research Note 1; 10: Public Venture Capital: Understanding the US and Chinese Experiences; 11: The Challenges China's Private Enterprises Face in the WTO; 4: Ownership Reforms and Privatization; 12: The Privatization of Russian State Industry: Some Lessons for China; 13: Politician Control, Agency Problems, and Ownership Reform: Evidence from China 1; 14: Hospital Ownership: What Can China Learn From the US Experience?; 5: Corporate Governance and Efficiency; 15: Corporate Governance and the Development of Private Enterprise in China; 16: The Productivity Efficiency of State-Owned Enterprises in China; 17: The Prospect of Private Economy in China


    Shuanglin Lin is Ward Lindley and Gorge Lindley Professor in the Department of Economics at the University of Nebraska, USA, Peking University, China and Shunfeng Song is Professor in the Department of Economics, University of Nevada, USA.

    'I would not hesitate to recommend this volume to students of business management and political economy.' China Review International