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Two decades of reform : the changing organization dynamics of Chinese industrial firms (English)

Since the early 1980s, China has begun gradually integrating with the global system. In doing so the country has moved toward its own unique brand of market socialism, which recognizes private ownership, and is adopting market institutions and pursuing industrial change within the framework of an urban economic environment. The process of transition has now permeated every corner of Chinese life and no organization has been left untouched. Yet industrial organization in China-especially in the state sector-has been slow to shed many of the distinctive structural characteristics of the old line Maoist era state enterprises. The main prong of the industrial strategy in support of urban change is ownership reform that transforms state-owned enterprises into corporate entities with majority state ownership or places them wholly in private hands, in the process also bolstering the incentives for and the dynamism of the private sector. While the central government spearheads the ownership reform initiative, in the majority of cases the actual implementation is in the hands of municipal, county, and prefectural governments that must coordinate their efforts with other factors influencing urban changes. This paper situates industrial change in China within the context of urban development and examines the interplay of broad reform strategy with local implementation, and its actual practice by the reformed firms.

Details

  • Author

    Nabeshima,Kaoru, Yusuf,Shahid

  • Document Date

    2006/01/01

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS3806

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    China,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2010/07/01

  • Disclosure Status

    Disclosed

  • Doc Name

    Two decades of reform : the changing organization dynamics of Chinese industrial firms

  • Keywords

    advantage of scale economies;township and village enterprise;improving access to finance;Active Labor Market Policies;active labor market policy;soft budget constraint;state sector;state enterprises;profitability of enterprise;Science and Technology;state industrial sector;majority of share;state owned bank;small scale enterprise;supply of skill;investment in research;spread of poverty;privatization of state;Poverty & Inequality;free market economy;centrally planned economy;small size cities;flexible labor market;social security arrangements;state enterprise sector;competitive global economy;large urban centers;foreign direct investment;pace of privatization;availability of information;role of state;source of financing;revenue sharing arrangement;regulation of facility;structure of governance;share of revenue;inflow of migrants;long term financing;social security system;medium sized cities;commercial real estate;barriers to trade;export oriented industry;amount of credit;access to bank;socialist market economy;special economic zone;clusters of activity;urban labor force;state-owned banks;skill and technology;high growth rate;coastal city;urban economy;organizational change;municipal authority;municipal government;business sector;banking sector;state ownership;foreign investor;industrial enterprise;industrial economy;physical infrastructure;Urban Infrastructure;demonstration effect;urban development;heavy industry;knowledge spillover;enterprise group;transaction cost;urban change;corporate entity;production target;financial resource;industrial system;organizational form;capitalist economy;industrial productivity;foreign subsidiary;Socialist economies;national pension;red tape;urban context;industrial strategy;business environment;agriculture sector;global system;market institution;market opportunity;private ownership;market socialism;research institute;ownership right;business community;reform strategy;command economy;private hand;Business Climate;local industrial;urban sector;metropolitan region;institutional condition;fiscal policy;regulatory impediment;market development;registration requirement;landfill site;political power;market reform;organizational dynamic;agglomeration economy;multiplier effect;local regulation;township government;metropolitan government;urban market;private investment;conducting business;fiscal responsibility;bargaining power;infrastructure service;investment climate;competitive environment;fiscal decentralization;Public Utilities;urban transport;fiscal support;design patent;agricultural land;future prospect;social responsibility;basic research;research function;foreign company;business practice;technological frontier;fiscal system;increasing exports;primary vehicles;contract worker;knowledge worker;Medical care;Bank Credit;debt structure;enterprise objectives;pension benefit;intellectual property;extension service;controlled price;transfer technology;administrative capacity;arable land;urban sprawl;research capacity;raw material;electronic processing;technology activity;research assistance;industrial structure;international economy;market mechanism;communist society;regulatory control;permanent migration;administrative practice;Transition economies;informal relationship;provincial economy;consumer goods;urban hierarchy;transition economy;asset stripping;output growth;Fixed Assets;urban workforce;social obligation;technological capability;foreign multinational;local partner;industrial asset;distribution infrastructure;profit margin;supervisory organ;urban growth;absolute poor;tax revenue;urban landscape;ferrous metal;tax base;manufacturing enterprise;management capacity;industrial labor;missing market;registration system;trade channels;local initiative;state trading;foreign exchange;Rural Industry;sized enterprise;industrial producer;transport prices;stateowned enterprises;industrial good;Industrial Goods;role models;medium-sized enterprise;sewerage facilities;regulatory practice

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Citation

Nabeshima,Kaoru Yusuf,Shahid

Two decades of reform : the changing organization dynamics of Chinese industrial firms (English). Policy, Research working paper ; no. WPS 3806 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/260841468019146874/Two-decades-of-reform-the-changing-organization-dynamics-of-Chinese-industrial-firms