The impact of current institutional arrangements on SOE's privatization

摘要

An enduring debate between state and private ownership has long been topical in academic arenas. Every international scholar has his/her own view about SOE's privatization from different perspectives, such as the state system, property rights, contracting rights etc. The author generalizes the privatization in the first part, and then introduces the forms of privatization and functions; elaborates ownership theories. The paper mainly focuses on how the current institutional arrangements influence SOE's privatization. The current institutional arrangements involve property rights, contracting rights, political interference, etc. It also analyses how privatization influence on investment and growth, the relationship between privatization and financial development. We can draw a conclusion from existing literature that the stronger the economic and the governing institutions, the easier it is for privatized firms to thrive and contribute to growth.