Research On The Comprehensive Benefits Of State-owned Capital Investment

After 30 years of reform and opening,the "China miracle" aroused the extensive and sustained attention from numerous Chinese and foreign researchers,some people tried their best to reveal the essential causes and internal factors in the angle of economic and political system,and some others researched from natural resources,Comparative superiority and second-mover advantage and so on.These studies had different emphases and strengths, and also most likely grasped the pulse of economic and social development of china,even though we insisted it may be infeasible and unavailable to curtly and grafting-style copy the successful research methods on Western countries or other else to Chinese development of economy and society. Because the development approach of China's economy and society was unique, and different from any other country. Mostly, as a successful socialism country benefited from the reform and opening, its exploration process of the socialist market economy also had a distinctly Chinese characteristicsit. We found that there was a very momentous factor playing important role in China's economic and social development process, from the socialist transformation in 1950s to the establishment of the country strategy of preferential development for heavy industry and then to successful dealing with several financial crises. This factor is the state-owned capital. However, On the other hand, the controversy on state-owned capital can't to reach agreement. Therefore, In view of this, we intend to explore the effect of state-owned capital investment on economic growth and social development and construct a scientific and reasonable evaluation system.Our research route was that:Firstly, in the introduction part, we preliminarily discussed the research background, research purpose and research meaning, and related literature reviews, whose purpose was to design the basic architecture of this article. Secondly, we gave a detailed theoretical analysis and historical study on the weareas of state-owned capital and the relevant factors which can affect the Comprehensive Benefits of State-owned Capital Investment. In the process of research, we systematically combed the relevant theoretical results and comments, and linked the State-owned Capital Investment with the historic background, which would make our research more meaningful and forward-looking. And then, based on the former theoretical analysis, we stated the consequences of state-owned capital investment in the relevant economics analysis and empirical testing, and drew some policy implications. Subsequently, based on the previous paper, we constructed a evaluation system of state-owned Capital Investment.In constructing theevaluationsystem, we made full use of the results of a theoretical framework, starting from the special attributes (social functions) of state-owned capital, adhering to the spirit of people oriented. Finally, we provided some relevant policy suggestions, on the basis of the theoretical analysis and empirical study. Specifically, the article is composed of six parts:The first part is the introduction.In this part, we pointed the research background and research priorities, and established the research significances and main contents, with the main clues for China's economic growth and social development, basing on the special background of social transformation and China's reform and opening. And then, we took a brief review on relevant literatures, and just on the basis of the former research, we further defined the starting of this study with the key point and the difficulty.The second part, we defined some important concepts may be involved in this article, and discussed the theoretic and practical significance of the existence and development of state-owned capital, and took a detailed analysis on the functions and characteristics of state-owned capital in the socialist market economy. We defined the key concepts such as capital and state-owned capital and so on, with the basic starting point of Marx's view, and made it clear that capital does not exist only in capitalist society, as a matter of scarce resources, which can serve for the socialist society. Based on the definition and analysis, we pointed that the co-existence and common development of the public capital (including state-owned capital and collective capital, whose main is state-owned capital) and non-public capital is an objective fact in a long period of time for the reform process of China's economic system, which caused by the basic national conditions of our country. It is worth emphasizing that the basic features of the socialist market economy must be the public capital. When we scientific utilized the contribution of non-public capital, we should encourage and guide the healthy development of non-public capital, and we should also prevent the inlimit expansion of non-public capital, in case of the damage and swallow to the socialist public ownership. In addition, according to Marxist theory of ideology, the property rights which was pulled out from the complex social relations was a corresponding area with the national political power, that is, a country can obtain the property rights with the identity of property owner. As the reflection of national property rights, the state-owned capital embodied the ownership:the socialist public ownership determined that the socialist national power had to maintain and consolidate the socialist property rights which was featured as the socialist public ownership, and to obtain profits by the property rights, in order to further develop and strengthen the socialist state-owned economy and provide the strong material foundation for development of socialist economy and society.The third part, we analysed the factors which affected the Comprehensive Benefits of State-owned Capital Investment, firstly, we started from the general nature of capital, and discussed interest demands of the original motives of capital and objective needs for the virtuous cycle of socialized total production, and then, pointed the economical factor which affected the Comprehensive Benefits of State-owned Capital Investment, in the angle of capital original motives and socialized total production. Secondly, we take the economics analysis on the effects from the perspective of the scale of state-owned capital. Finally, we gave the further exploration on the affected factors from the perspective of governance and configuration. In this chapter, we took the economics analysis as the main research methods, from the internal factors to external factors, and from the microeconomics methods to macroeconomics approaches.In the fourth part, we discussed the consequences of state-owned capital investment. The research showed that the investment of state-owned capital had a long-term effect on China's economic growth and social development, but on other hands, it showed us the evidences that the development may be extensive, which depended on large scale of investment of state-owned capital. Therefore, we advised some appropriate recommendations, considering the special macroeconomic environment of China's economic reform and social transformation, in order to avoid the possibility of facing the "East Asian plight".In The fifth part, we constructed the evaluation method and index system for the comprehensive benefits of state-owned capital investment, from economical benefits and social benefits, which avoided the weakness of the existing researches which over-emphasized on the economical benefits, and on other hands, embodied reflected the spirit of people oriented. In the process of reconstructing the economical benefits indexes, we used the capital return rate, residual income and total factor productivity, from the direct economic benefits and transferred benefits; In the process of constructing the social benefits indexes, we selected eight indexes such as average GDP per person, unemployment rate, average living space per person, average health investment per person, average education years, average environmental investment per person, social crime ratio and Gini coefficient, from four dimensions, with Maslow's theory on human needs. And then, we evaluated the comprehensive benefits of state-owned capital investment, with the relevant historical data.Part six is the conclusion and policy recommendations. It's concluded the preamble contents and fundamental points in this part, and we provided some feasibility and alternative proposals on how to improve the comprehensive benefits of state-owned capital investment.The main innovations are following:Firstly, the new research perspective. As we emphasized, most of the existing researches had not considered the non-economic benefits (for example, social benefits) of state-owned capital in the spacial period of transitional society, and had not considered the iniquity and rationality of the particular institutional arrangements in the socialist market economic system, even nor putting the research perspective into the specific historical background, which made the denying to the contribution of state-owned capital in the development and exploration stage of socialist market economic system reform with Chinese characteristics. In view of this, we jumped out of the existing research results, and explored the comprehensive benefits of state-owned capital investment, with Chinese characteristics and times background, combining with the macro-environment of China's economic reform, social transformation and the strategy implementation for catching up. In addition, we also put the state-owned enterprise reform and financial crisis into a unified analytical framework, and fully revealed the Significance of the state-owned capital for overcoming the financial crisis, and expanded the special functions of state-owned capital for macro-controlling and adjusting the processing of economic and social reform.Secondly, the innovation and attempt on the theoretical analysis. We gave the detailed theoretical analysis on capital and state-owned capital and other relative concepts in the the theoretical framework: we redefined some important concepts, according with the Marxist theory on the social relationship, absorbing scientific the Western economic theory, and considering the recognition changing on the areas of capital. Based on that, we discussed the theoretical foundations and practical significances of the state-owned capital in a new perspective, especially, we attempted to put forward the "market conductor". Besides, we analysed the dual properties of state-owned capital, and explored the contradictory unity of the dual properties of state-owned capital.Thirdly, the expansion and innovation on research methods, which based mainly in the following three aspects:â‘ we extensively drew the economics analysis methods in the theoretical framework, such as: we pointed out the capital maintenance point and the policy-related losses area caused by over-commitment of social functions, and analysed the contradictory unity of the dual properties, with the usage of economics analysis methods; in addition, we took the macroeconomics analysis method on total production and total supply when we discussing the objective needs of the virtuous cycle of the social total production; besides, we discussed the optimal scale of state-owned capital investment, with the usage of utility analysis tool in microeconomics. The introduction of economic analysis tools into our study made our research convenient and explained a lot of practical phenomena and resolved many problems.â‘¡we proposed replacing the chain-year growth rate to commonly used based-year growth rate, when evaluating the the spillover economical benefits with Solow residual.â‘¢we promoted the difference calculation method instead of directly using Solow model, in order to offset the impacts caused by technological progress on output growth. The usage of the difference calculation method greatly reduces a large amount of calculation.Fourthly, the people-oriented creation on evaluation index system. We found that,a variety of economics studies based on the assumption of rational human were mostly taking the "human" as corresponding factors with capital, technology and other factors material, ignoring the initiative activity and the basic human needs (such as clothing, living, etc.), which caused the denying to the human self. The "coolness" behind the economic data made people cold, and lacking a little warmness for human. Although it's the real situation, but we always insisted that, no matter how developed the society and no matter how advanced the technology, in one word, all produced by human. Therefore, when constructing the evaluation index system, we stood on human basic necessities, and with the spirit of human-oriented.