Interests of the Entrepreneur and Behavior of the Enterprise
Zou Gang and
Wang Zhigang
Chinese Economy, 1988, vol. 22, issue 2, 82-94
Abstract:
The material interests of socialism comprise the interests of the state, the enterprises, and employees. The three are basically identical, but there are also partial conflicts and differences. Stressing the interests of the state to the neglect of those of the enterprises and employees takes away the latter's incentive for economic activity, thus sapping the vitality of the micro economy. Since economic restructuring, people have gradually come to know the mechanics of material interests as a driving force for micro-economic activities. Adjusting the distribution of interests among the three and investing the enterprises with more autonomy have become the principal channels for reforming economic institutions.
Date: 1988
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