Privatization. Issues at Stake in the Case of China

Qi Quan and N. Huyghebaert

Review of Business and Economic Literature, 2004, vol. XLIX, issue 4, 647-687

Abstract: This paper reviews the theory and recent empirical studies on privatization, with a special focus on the efforts made in the case of China. Over the last decade, the Chinese government has initiated major privatizations in an attempt to promote more efficiency and improve the financial and operating performance of state-owned enterprises. Despite the great variation in perspectives and adopted methodology, studies on privatization mainly address the following two questions: why to privatize and how to privatize? Also, there is a huge literature on the post-privatization performance of these firms. While privatization has improved the performance of most SOEs worldwide, our data suggest that it does not work very well in the case of China.

Date: 2004
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