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State Economic Entity Enterprise Management And Boundary Determined

Posted on:2003-04-27Degree:DoctorType:Dissertation
Country:ChinaCandidate:X Y LinFull Text:PDF
GTID:1116360062985411Subject:Uncategorised
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Analyzing economic theory from a transaction cost perspective, it is clear that the main reason countries deployed centrally planned economic systems was that they were facing various and imposing social challenges, such as military involvement and prioritization of their internal economic recovery. In order to lower their overall transaction and social costs, these countries had concentrated all their resources on the promotion of a controlled economy and nationalization projects. In this thesis, I have concluded that the formation of different economic systems is owing to the selection and arrangement by priority of three types of transactions: purchasable, managerial, and limitary. (John R. Commons, 1934)Purchasable transaction cost is the main stream of a market economic system. It is largely reduced by the pursuit of a centrally planned economy while material object accounting is the mainstay for its business. Under the centrally planned economic model, price function is only a passive post-transaction calculation tool, and purchasable transaction cost almost tends to zero, surplus of enterprises are extorted by the government, and there is no taxation entity or objective. Managerial cost, the only remaining transaction type, is largely saved. Therefore, from a practical point of view, those countries which had deployed centrally planned economic systems obtained tremendous success within a certain period of time.However, once the above-mentioned social challenges were substituted by effective economic targets under a peaceful economic veil, the centrally planned economic system brought a disastrous result for the socio-economy. The shortage of economic management and the enlargement of social class struggle (an artificial rein imposed by the government in order to implement the objectives of a centrally planned economy) formed a volatile combination which exacerbated the condition of the whole social economy and pushed it to the edge of collapse.In order to explore a socioeconomic development model which would simulate transmission of objective target constraint, countries with centrally planned economies successively engaged in the improvement of their economic systems. Although the methods used are varied, from an economics standpoint, redefining enterprise's property rights and defining boundaries of enterprise and markets, are both common principles for building up a market economic system.This thesis analyzed and concluded that seeking the optimal way to allocate social resources under transmission of the condition of social objective constraint is the essence of reform, and thus leads to the transformation process of priority of transaction types.This thesis analyzed Ronald H. Coase's transaction cost theory and Oliver E. Williamson's asset specificity theory, as well as integrated S.N. Cheung's indirect pricing theory with specialfeatures on various enterprises arisen from the information epoch. This thesis also put forward a proposal calling for major changes in the decision regarding boundaries of enterprise. By virtue of the prevalence of computer and the Internet and swift and dramatic development of capital markets, there exist more selective forms than even S.N. Cheung's limited contractual choices; the appearances of the agile manufacturing and fictitious companies have also caused a fundamental change for the limitation of "asset specificity".In addition to establishing modern enterprise systems and rules of property rights, state-owned enterprises need to simultaneously meet the challenges of the information age to upgrade and replace of the structure of industry, product, and employment. This thesis is based on a substantial analysis of the classification and reformation of China's state-owned enterprise system evolution and in the contrast with state-owned enterprises under market economies.
Keywords/Search Tags:State-owned Economic Entity, Reform of Enterprise, Define Boundary of Enterprise
PDF Full Text Request
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