A multitask theory of state enterprise reform

Citation
Ce. Bai et al., A multitask theory of state enterprise reform, J COMP ECON, 28(4), 2000, pp. 716-738
Citations number
26
Categorie Soggetti
Economics
Journal title
JOURNAL OF COMPARATIVE ECONOMICS
ISSN journal
01475967 → ACNP
Volume
28
Issue
4
Year of publication
2000
Pages
716 - 738
Database
ISI
SICI code
0147-5967(200012)28:4<716:AMTOSE>2.0.ZU;2-V
Abstract
During transition, maintaining employment and providing a social safety net to the unemployed are important to social stability, which in turn is cruc ial for the productivity of the whole economy. Because independent institut ions for social safety are lacking and firms with strong profit incentives have little incentive to promote social stability due to its public good na ture, state-owned enterprises (SOEs) are needed to continue their role in p roviding social welfare. Charged with the multitasks of efficient productio n as well as social welfare provision, SOEs continue to be given low profit incentives, and consequently their financial performance continues to be p oor. (C) 2000 Academic Press.