An alternative to privatization of transition economy state-owned enterprises : the case of China

摘要: Recent literature has focused on privatization in addressing the issue of making stateowned enterprises (SOEs) more competitive global marketplace. As a result, number SOEs have been privatized many transition economies. Unfortunately, there not major performance improvements aftermath within these contexts. Therefore, we are interested exploring whether is an incomplete or maybe even erroneous solution to economy competitive. Using China as illustration, this paper analyzes possibility employing contractual incentives alternative strategy conquering SOE inefficiency, and proposes that well-designed incentive system will work effective countermeasure opposed straightforward solving problems