The Control Power Of The State-owned Economy In China Under The Conditions Of Opening Market Economy

In the past sixty year's of development of New China, our economic system and state-owned economy changes in different historical phases. At present, the socialist market economy has taken shape initially in China, and the basic economic system has been established, in which public ownership is dominant and different economic sectors develop side by side. At the fourth plenary session of the fifteenth central committee in 1999, it was put forward that the leading role of the state-owned sector should manifest itself mainly in its control power under the condition of the socialist market economy.In practice, it has not obtained a quite unified understanding to the control power of the state-owned economy. Many problems need to be solved. But the theoretical research is weak, and there still exist some theoretical divergences, defects and blanks. This dissertation made a theoretic and empirical study of the control power of the state-owned economy under the conditions of opening market economy, from a macro-perspective. This dissertation analyzed the mechanism of the state-owned economy's acting on national economy, and validated the result of the theoretic model. The selected topic of this dissertation has certain practical and theoretical significance. This dissertation can make some improvement and supplement to related research, it can also provide reference for practical work and policy making.This dissertation is divided into seven chapters. As a basis of the dissertation, the first tow chapters introduced the research background, summarized relative literatures, defined the concepts and analyzed the status of the control power of the state-owned economy. The third, the forth and the fifth chapters mainly analyzed the mechanism and the effect of the state-owned sector's acting on national economy. The sixth chapter analyzed the negative function of the excessive development of the state-owned economy. As an introduction part, the first chapter mainly introduced the research background, reviewed the foreign and domestic relative researches, and summarized the main contents and the innovative points of the dissertation.Chapterâ…¡defined the concept and the connotation of the control power of the state-owned economy at first. Then, this chapter determined the evaluation method and index. On this basis, this chapter analyzed the status of the control power of the state-owned economy. The result shows that:(1) compared to the other economic sectors, the state-owned sector maintains the control position; (2) the control power of the state-owned economy differs obviously in different industries, and the state-owned sector keeps control of the most industries; (3) while in industrial field, there are only few industries of which the state-owned sector keeps control; (4) the control power of the state-owned economy also differs obviously in different provinces, and the state-owned sector keeps control of more than half of the provinces (autonomous regions, municipality cities).Chapterâ…¢mainly studied the mechanism and the effect of state-owned economy's promoting economic growth. Firstly, this chapter analyzed theoretically that the state-owned sector influences the technical progress by R&D input and the capital accumulation by investment, thus influences economic growth. Furthermore, this chapter empirically tested the effect. The result shows that:(1) the control power of the state-owned economy is positively correlated with R&D efficiency, and negatively correlated with R&D input; (2) in high-tech industry field, the effect of the state-owned sector is less than other economic sectors;(3) the excessive development of the state-owned economy goes against the capital accumulation. This chapter also analyzed the effect of the state-owned economy's making up market failure. In China, the state-owned sector plays an important role in offering public goods and coordinating balanced development, thus promotes economic growth indirectly.Chapterâ…£mainly studied the mechanism and the effect of state-owned economy's maintaining economic stability. Firstly, this chapter analyzed that the state-owned sector plays a positive role in maintaining economic stability by submitting to national fiscal policy to enlarge the expenditure-income multiplier. The result shows that the investment of the state-owned sector plays a certain role in maintaining economic stability since 1993, and the state-owned sector increased investment obviously to prevent the economic downturn when the national economy faces the severe challenge. Secondly, this chapter analyzed the situation of the state-owned sector's executing the national monetary policy. The result shows that our state-owned banks execute the national monetary policy rigorously, and the state-owned enterprises'overseas investment is beneficial to restrain the input-type price fluctuation. Furthermore, this chapter analyzed that the state-owned sector submits to the national policy to stabilize the asset price. Taking A share market as an example, the state-owned enterprises make an active response to national policy, and play an positive role in maintaining share market stability.Chapter V mainly studied the mechanism and the effect of state-owned economy's responding to the economic crisis.Firstly, this chapter analyzed the background of coping with external shocks especially with global economic crisis in opening market economy. Secondly, this chapter analyzed the mechanism and the effect of the state-owned economy's stabilizing the financial system. The result shows that in private financial system, because of self credit decrease, the financial organizations face with bankruptcy during economic crisis, and that will cause chain reaction and turbulence of the whole financial system. While, the state-owned financial system faces less risk, and that is beneficial to the financial system's stability. Thirdly, this chapter analyzed the mechanism and the effect of the state-owned economy's responding to the credit crunch. Our analysis implies that, due to the sharp falling of asset price and the pessimistic expectation of economic prospect, macro-economy tends to fall into the plight of the credit crunch during economic crisis. While, state-owned economy can play a positive role in response to the credit crunch, because that government tends to guarantee for state-owned enterprises. During 2007-2009, the credit crunch occurred in the United States, and the state-owned economy plays a positive role in responding to the credit crunch in China.Chapter VI analyzed the negative function of the excessive development of the state-owned economy. Firstly, this chapter analyzed the excess employee caused by the government's intervention. The analysis implies that, in history of new China, the high proportion of the state-owned economy once lead to severe problem of excess employee and low output per capita. In the process of our reform and opening, the proportion of the state-owned economy continuously decreased, and the output per capita increased distinctly. But until now, the assets operation level and the assets return rate of the state-owned enterprises are comparatively lower. Secondly, this chapter analyzed the soft budget constraint of the state-owned enterprises. The result shows that there once existed the outstanding problem of soft budget constraint, and the financial subsidy to the state-owned enterprises was quite high. Along with the process of our economic system reform, the financial subsidy and the non-performing loan rate decreased obviously. Altogether, the excessive development of the state-owned economy influences the establishment and the improvement of market economy. In fact, the proportion of our state-owned economy reduced significantly, and the marketization degree was promoted.Chapter VII drew a conclusion of the whole dissertation.