Contract Responsibility Systems and Productive Efficiency: A Case Study on State-Owned Enterprises in China

Pak-Hung Mo and Sung-ko Li

Bulletin of Economic Research, 1998, vol. 50, issue 4, 323-41

Abstract: In late 1994, it became known that around two-thirds of the state-owned enterprises in China were running at a loss or yielding no profit. For more than a decade, China has been searching for a management system for state-owned enterprises to improve their efficiency. Various 'contract responsibility systems' have been tried. This paper studies the productive efficiency of enterprises and the impact of various types of management system on productive efficiency. A better understanding of past experiences should enable management reform to move ahead on solid ground. This study is particularly meaningful in view of the present bleak future of state-owned enterprises. Copyright 1998 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research

Date: 1998
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