Ann Harrison, Marshall W. Meyer, Will Wang, Linda Zhao, Minyuan Zhao, 07 April 2019

The conventional wisdom that privatisation of state-owned enterprises reduces their dependence on the state and yields positive economic benefits has not always been borne out by empirical work. Using a comprehensive dataset from China, this column shows that privatised SOEs continue to benefit from government support in the form of low-interest loans and subsidies relative to private enterprises that have never been state-owned. Although there are clear improvements in performance post-privatisation, privatised SOEs continue to significantly under-perform compared to private firms.

Max Büge, Matias Egeland, Przemyslaw Kowalski, Monika Sztajerowska, 02 May 2013

State-owned enterprises have become global players and the subject of much policymaking concern. There is a widespread perception that they may be acting differently when competing with private firms in the global market place. This column introduces a new database on state-owned firms that shows that more than one in ten of the world’s largest firms are state-owned. These new data should help governments formulate informed and balanced policy responses.

Shang-Jin Wei, 16 June 2007

Data on 12,400 firms in 120 Chinese cities show that state-owned firms have lower marginal returns to capital than private or foreign firms. This inefficiency costs China 5% of its GDP and suggests there would be big gains to further financial and corporate-governance reforms.

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