I present a study of ownership of firms under government rent seeking. Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such a government rent seeking activity leads to a typical hold-up problem. Government ownership is shown...

This paper proposes the new hypothesis that the loss of innovative efficiency is greater than the loss of productive efficiency in Chinese state-owned enterprises (SOEs). SOE reform in China has been able to achieve substantial improvements in SOE productive efficiency by using supervision and...

Through comparison with the computer industry this paper examines whether government intervention has facilitated development in the Chinese automobile industry. Chinese computer firms operate in a largely laissez-faire market environment, with relatively free entry and exit, whilst the...

Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such government rent-seeking activity leads to a typical hold-up problem. Government ownership serves as a second-best commitment mechanism, through which the government agency...

Using its control of regulated inputs, a government agency extracts rents from a manager who undertakes an investment. Such government rent-seeking activity leads to a typical hold-up problem. Government ownership serves as a second-best commitment mechanism, through which the government agency...

This article reviews China's land tenure system, which is featured with differential treatment of rural and urban citizens with respect to three types of land tenure: urban land tenure, arable land tenure and rural residential land tenure. With the urban residents fully participated in the...

This working paper was written by Ana Fernandes (University of Sussex) and Heiwai Tang (Tufts University and Centro Studi Luca d'Agliano).This paper uses detailed product-level export data for China and proposes an extension of the Antràs and Helpman (2004) framework that includes investments...

Using detailed product-level export data for China and a variant of the Antràs and Helpman (2004) model that includes investments in component search, we examine the sectoral determinants of foreign direct investment (FDI) versus foreign outsourcing in export processing trade. We exploit the...

Headquarters and their specialized component suppliers have a vital interest in establishing long-term collaborations. When formal contracts are not enforceable, such efficiency-enhancing cooperations can be established via informal agreements, but relational contracts have been largely ignored...

In this paper, we consider a dynamic search-and-matching problem of a firm with its intermediate input supplier. In our model, a headquarter currently matched with a supplier, has an interest to find and collaborate with a more efficient partner. However, supplier switching through search and...