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By Dyla Sutherland

Considers the 'late industrialisation' of China, displaying how executive guidelines have inspired the improvement of a hundred and twenty 'national champions' (akin to jap keiretsu and South Korean chaebol ), how those 'national champions' compete with multinational organizations, and the way China's fast and profitable 'late industrialisation' doesn't healthy orthodox fiscal theories. The ebook offers an in depth representation of those wider matters with a case learn of the automobile undefined.

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Extra info for China's Large Enterprises and the Challenge of Late Industrialisation (Routledgecurzonstudies on the Chinese Economy)

Example text

And] entry or expansion of smaller firms’. In Japan the three-firm concentration ratios increased in only three out of twenty industry sectors in the 1950–62 period (Amsden and Singh 1994: 947). In the initial very fast growth periods, because of the entrance of new firms, concentration ratios may not tell us a great deal about the growth of the largest corporations. An alternative way of estimating the importance of large enterprises is by taking a broader measure of large-scale industry. 2, shows the breakdown of LME industrial output by industrial sector.

Although the debate on the transition from planned to market economy has recently lost some of its ferocity and relevance, the implications of the re-interpreted Chinese experience incorporating the large-scale sector have again stirred up this debate. Transition orthodoxy paid little attention to the possibility of constructing large multi-plant firms capable of reaping economies of scale. Instead, it concentrated on the destruction of the incumbent bureaucracy and policies of individual plant level privatization.

As in earlier debates in the transition literature, ownership reform and liberalization is considered by the World Bank as the final solution to China’s reform challenge: the government’s decision to focus on developing 1,000 of the largest state enterprises while loosening controls on the remaining 314,000 is a step in the right direction. But much more needs to be done. All enterprises should be fully exposed to domestic and international competition. Just as important, their ownership should be diversified toward households and nonstate institutions.

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