This paper considers the non-monotonic effect of the partial privatization campaign on the capital allocation … distortion of large SOEs in China by using the Chinese firm-level panel data. We construct a theoretical model to show that the … rise in the degree of partial privatization has the non-monotonic effect of removing the capital allocation distortion …

characterizes China's state sector. The model demonstrates the nature of the bargain between the principals (i.e., officials from … China's State Asset Council) and the agents (large-SOE managers). We derive an indifference payoff point, which maximizes … party in the game. This condition helps to explain the inability of China's political economy system to privatize …

In the hierarchy of China's state sector, both before and during the current reform period, government bureaucrats …

The transition from plan to market in China has been almost completed without any master-plan. The paper proposes to … relations with existing paradigms in China studies, such as the "quasi-federalism" approach. I apply this conceptual framework …

determining the success or failure of policies of liberalisation and privatization, illustrates the need for a concise theoretical …