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 research reveals the inherent dynamics between the amount of foreign direct investment (FDI) inflow in the host country and its political relationships with other countries. We demonstrate in a two-stage sequential game model that there exists an inverted U-shape relationship between FDI...

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...

The literature extensively discusses the increasing commitment toward comprehensive structural reform of China’s economy as it targets to achieve high quality and sustainable economic growth. This research investigates the inherent relationship between supply-side structural reform (SSSR) and...

This paper considers the non-monotonic effect of the partial privatization campaign on the capital allocation distortion of large SOEs in China by using the Chinese firm-level panel data. We construct a theoretical model to show that the rise in the degree of partial privatization has the...

This research constructs a simple dynamic model to illustrate the micro-mechanism of industrial upgrading along the global value chains. Our model demonstrates the following results. (1) Firms in the value chains manage to upgrade from downstream to upstream stages by acquiring higher...