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Trade liberalization and decentralization of state‐owned enterprises: Evidence from China.
- Source :
-
Economic Inquiry . Jan2022, Vol. 60 Issue 1, p224-246. 23p. 8 Charts, 4 Graphs. - Publication Year :
- 2022
-
Abstract
- This paper examines the relationship between trade liberalization and the probability of state‐owned enterprises (SOEs) being decentralized. We find that tariff cuts for inputs significantly lower the probability of a SOE being decentralized, whereas tariff cuts for outputs raise this probability. We also find that as the distance from a SOE to its overseeing government increases, the effects of input and output tariff cuts on the probability of SOEs decentralization become stronger. Our empirical results are consistent with a simple model in which local governments try to balance the costs of supervising SOEs against the profits extracted from SOEs. [ABSTRACT FROM AUTHOR]
- Subjects :
- *FREE trade
*GOVERNMENT business enterprises
*TARIFF
*LOCAL government
Subjects
Details
- Language :
- English
- ISSN :
- 00952583
- Volume :
- 60
- Issue :
- 1
- Database :
- Academic Search Index
- Journal :
- Economic Inquiry
- Publication Type :
- Academic Journal
- Accession number :
- 154222451
- Full Text :
- https://doi.org/10.1111/ecin.13014