SOEs Reform’s Impact on Economic Growth
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| Title | SOEs Reform’s Impact on Economic Growth
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| Author | Xu Zhaoyuan and Zhang Wenkui |
| Organization | Development Research Centre of the State Council |
| Email | zhaoyuan@drc.gov.cn;wkzhang@drc.gov.cn |
| Key Words | Development Research Centre of the State Council |
| Abstract | This paper investigates how the Stated Owned Enterprises(SOEs) reform influences economic growth, and constructs a Computable General Equilibrium model which reflecting Chinese economic characteristics, separating the production from SOEs or not SOEs, to estimate SOEs reform’s impact on economic growth. We find that SOEs reform can enhance economic growth through raising marginal output of capital, improving allocation efficiency of capital, increasing TFP growth rate and exerting the spillover effect on other firms. Results of numerical simulation show that economic growth rate benefits significantly from SOEs reform: If every 5% of the SOEs are reformed year by year in the next 10 years, the economic growth rate can averagely raise 0.33 percentage point every year; and the yearly average raise of the economic growth goes separately to 0.47 or 0.50 percent point if 10% and 20% of the SOEs are reformed. With the background of searching and exploring endogenous driving force for economic growth, promoting SOEs' reform steadily and actively is very important for China to enhancing the economic efficiency and promoting economy growth. |
| Serial Number | WP819 |
| Time | 2015-02-06 |
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