Trade liberalization and decentralization of state‐owned enterprises: Evidence from China.

This paper examines the relationship between trade liberalization and the probability of state‐owned enterprises (SOEs) being decentralized. We find that tariff cuts for inputs significantly lower the probability of a SOE being decentralized, whereas tariff cuts for outputs raise this probability. W...

Full description

Bibliographic Details
Published in:Economic Inquiry Vol. 60; no. 1; pp. 224 - 247
Main Authors: Fan, Haichao, Hu, Cui, Lin, Faqin, Wang, Huanhuan
Format: Article
Published: Wiley-Blackwell Jan2022
Subjects:
Online Access:View this record in EBSCOhost
fields @attributes:
  recordID: 1
pdfLink:
plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=154222451&site=ehost-live
header:
  @attributes:
    shortDbName: ssf
    uiTerm: 154222451
    longDbName: Social Sciences Full Text (H.W. Wilson)
    uiTag: AN
  controlInfo:
    bkinfo:
    jinfo:
      jid:
        00952583
        EIQ
      jtl: Economic Inquiry
      issn: 00952583
      maglogo: Y
    pubinfo:
      dt: Jan2022
      vid: 60
      iid: 1
      pid: 480
      pub: Wiley-Blackwell
    artinfo:
      ui:
        154222451
        10.1111/ecin.13014
      ppf: 224
      ppct: 23
      formats:
        fmt:
          – @attributes:
              type: T
          – @attributes:
              type: C
          – @attributes:
              type: P
              size: 1.1MB
      tig:
        atl: Trade liberalization and decentralization of state‐owned enterprises: Evidence from China.
      aug:
        au:
          Fan, Haichao
          Hu, Cui
          Lin, Faqin
          Wang, Huanhuan
        affil:
          Institute of World Economy, School of Economics, Fudan University, Shanghai, China
          School of International Trade and Economics, Central University of Finance and Economics, Beijing, China
          College of Economics and Management, China Agricultural University, Beijing, China
          School of Law, East China Normal University, Shanghai, China
          Center for China Economic Research, School of Economics, East China Normal University, Shanghai, China
      su:
        China
        Government business enterprises
        Tariff
        Local government
        Free trade
      sug:
        subj:
          Government business enterprises
          Tariff
          Local government
          China
          Other federal government public administration
          Free trade
      keyword:
        decentralization
        input tariff
        output tariff
        state‐owned enterprise
        decentralization
        input tariff
        output tariff
        state‐owned enterprise
      ab: This paper examines the relationship between trade liberalization and the probability of state‐owned enterprises (SOEs) being decentralized. We find that tariff cuts for inputs significantly lower the probability of a SOE being decentralized, whereas tariff cuts for outputs raise this probability. We also find that as the distance from a SOE to its overseeing government increases, the effects of input and output tariff cuts on the probability of SOEs decentralization become stronger. Our empirical results are consistent with a simple model in which local governments try to balance the costs of supervising SOEs against the profits extracted from SOEs.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
    refInfo:
    copyright:
      @attributes:
        flag: N
    holdings:
      @attributes:
        islocal: N