This paper constructs a simple model to reveal the trade-off between decentralized and centralized governance structure of large state-owned enterprises (SOEs) in China. Our model shows that the delegation of decision making authority to SOE managers would enhance their initiative in terms of...

This paper constructs a two-stage sequential game model to investigate the spillover effect of inward FDI on the efficiency improvement of domestic firms across different ownership types in host countries. Our model shows that given the optimal spillover policy made by foreign firms, the impact...

This paper proposes a theoretical framework to illustrate the incentives of the exponential growth of the asset size of China's large state-owned enterprises in the past decades. We come up with the views that there are 3 types of incentives that lead to the expansion of asset size of large SOEs...

This paper uses a Nash bargaining framework to model the causes of the partial reform equilibrium syndrome that characterizes China's state sector. The model demonstrates the nature of the bargain between the principals (i.e., officials from China's State Asset Council) and the agents (large-SOE...

There is a growing interest in understanding the economic consequences of religious belief. Using unique dataset which surveys thousands of villages, this paper investigates the effect of religious beliefs on rural elderlies’ self-employment in China. The empirical results show that,...