Title
Corruption and China's Economic Reform in the Early 21st Century
Author(s)
Gregory C. Chow Gregory Chow (Princeton University)
Abstract
Past economic reform of the state sector in China consisted mainly of privatization, of agriculture and of small and medium-size state enterprises, leaving large state enterprises in the control of the state. Current reform consists of making state-owned enterprises and banks more efficient and functioning like private enterprises, and gradual privatization of some large state enterprises. Bureaucrats managing state assets and the selling of assets take advantage of such power to benefit themselves, including embezzlement of public funds and taking bribes from citizens needing their help, as can be found in state enterprises, state-owned commercial banks and in government projects. Reducing the size of the government sector is a basic solution to the corruption problem in China while attention should be paid in the privatization process which can involve corruption.
Creation Date
2005-10
Section URL ID
CEPS
Paper Number
116
URL
https://gceps.princeton.edu/wp-content/uploads/2017/01/116chow.pdf
File Function
Jel
D73, K42, L32, L33, P21, P31, P37
Keyword(s)
China, SOE, state owned enterprise
Suppress
false
Series
3