Research On The Role Of State-owned Enterprises In Stabilizing Market Economic Fluctuations

Since the reform and opening up,China has continuously deepened the reform of economic system and realized the transformation from planned economy to market economy.This year marks the 40 th anniversary of reform and opening up,and the topic of reform of state-owned enterprises has once again been pushed to the forefront.After the 15 th national congress of the communist party of China(CPC),the state-owned enterprises were reorganized,enlarged and enlarged,and gradually withdrew from noncompetitive industries.These non-competitive industries are either public goods related to people's livelihood,such as health care,education,etc.Or natural monopoly industries with high fixed costs,such as oil and telecommunications.However,for a long time,there has been a view that state-owned enterprises and private enterprises are opposed to each other.The rigid influence to the state-owned economy is: the stateowned enterprise economic efficiency is low,does not suit the socialism market economy;If a state-owned enterprise shows good profitability,it must benefit from its own status,government support policies and so on.There is even a view that the development of state-owned enterprises will squeeze the living space of private enterprises:the state advances the as the private sector retreatst.On the other hand,in the Sino-us trade friction,the intention of the United States against China's state-owned enterprises is very obvious.Western capitalist countries also refuse to recognize China as a market economy because of the existence of Chinese state-owned enterprises.But in fact,in western countries,the existence of state-owned enterprises is almost as old as capitalism.In recent years,despite the decline in the proportion of state-owned enterprises in western capitalist countries,state-owned enterprises still play an important role in western countries.After several rounds of nationalization and privatization,state-owned enterprises have not disappeared from the western world,and they are still distributed in the most important industrial sectors of western countries.To some extent,it can prove that state-owned enterprises have their rationality at the present stage of capitalist countries.This paper attempts to explain that state-owned enterprises can effectively restrain the fluctuation of market economy and promote the steady development of economy.From the perspective of market theory,this paper discusses that the market type in reality is not perfect competition as described by neoclassical economics,but nonperfect competition.Under the condition of imperfect competition,the market can not allocate resources efficiently.Under the condition of imperfect competition,the market does not always allocate resources rationally and effectively.Besides,under the market conditions of imperfect competition,the adjustment of wages and prices is sticky.When the economy is hit by the demand side and the supply side,it is a long process to reach the equilibrium of the economy by relying on the adjustment of market forces.Therefore,the government and state-owned enterprises need to take effective measures to iron out economic fluctuations.However,state-owned enterprises can act against the wind in the economic cycle by virtue of their abundant capital and strong support.Not cutting back and hiring as the economy slows;We will not reduce investment due to the economic downturn,and even dare to take risks and seize opportunities to increase investment.Since counter-cyclical behavior means taking huge risks,only state-owned enterprises can shoulder the responsibility of stabilizing fluctuations in the market economy.At the end of this paper,we make an empirical study on whether state-owned enterprises can stabilize regional economic fluctuations.Article set up the real GDP growth rate fluctuations as proxy variable of economic fluctuation,using 1999 to 2017,except Tibet China's 30 provinces,autonomous regions and municipalities directly under the central government's real GDP growth rate of panel data,through the HP filter method,will be separated into growth of real GDP growth trend term and short term fluctuation,the fluctuation is absolute terms to the extent of economic fluctuations.In addition,the core explanatory variable is the control power of state-owned enterprises.This paper sums up the proportion of output value of state-owned enterprises,the proportion of employed population,the proportion of main business income and the proportion of total assets,and takes it as a measure of the control power of state-owned enterprises.In addition,consumption shock,trade shock,investment shock,technology shock and wage factor are introduced into the model as explanatory variables.The empirical results show that there is a significant negative correlation between the control power of state-owned enterprises and economic fluctuations in the national sample and the western sample.That is to say,in regions where state-owned enterprises have stronger control,the economic fluctuation is smaller and the economic growth tends to be more stable,indicating that state-owned enterprises have indeed stabilized the fluctuation of market economy in China and western regions.However,the stabilizing effect of state-owned enterprises on market economic fluctuations is not significant in samples of northeast,eastern and central regions.