In the journey of post-socialist transition, many enterprises have accumulated large amount of debts and in deep financial distress. There axe many existing options that can be used to China's state owned enterprises (SOE's) axe facing a debt crisis. Over 80% of state enterprises have debt/asset...

Countries making the transition to a market economy often experience an increase in corruption along with an increase in growth. This observation is puzzling in the context of current models, which emphasize the destructive nature of corruption. We present a model of corruption and reform which...

Can ambiguous property rights sometimes be efficient? Ambiguous property rights arises when owners' rights axe not guaranteed before hand. Instead, owners have to fight for actual control, ex pos. We show that China's highly successful non-state sector is a major example of ambiguous property...

During transition, maintaining employment and providing a social safety net to the unemployed are important to social stability, which in turn is crucial for the productivity of the whole economy. Because independent institutions for social safety are lacking and firms with strong profit...

Countries making the transition to a market economy often experience an increase in corruption along with an increase in growth. This observation is puzzling in the context of current models, which emphasize the destructive nature of corruption. We present a model of corruption and reform which...

It has been increasingly recognized that the Chinese goverm-nent's newly acquired enthusiasm for economic development is a major factor explaining the relative success of China's transition from socialism. This paper argues that the changed behavior of the Chinese government is an outcome of a...

May 31, 1999 <p> China's economic performance of the past two decades presents a puzzle for the economics of transition and development: Enormous private business incentives were unleashed that have fueled rapid economic growth despite the fact that China has had very weak "conventional...</p>

China has experimented with two strategies of reform of its state-owned enterprises (SOE). One is diversification of SOEs’ ownership through introducing non-state sources of investment. Another is to improve the management of SOEs by granting SOEs’ managers autonomy and their employees...