The Withdrawal Mechanism Of State - Owned Enterprise

The state-owned enterprises (SOEs)inefficiency is very common in every countries.Economists have been making efˉforts to find the way to promote their efficiency.In China,alˉmost every ideas or policies have been enforced upon SOEs,Chiˉna is a famous testing place for economic theories.We have long before known that mono-propriety right conditions SOEs effiˉciency.We began our industrial reform with right releasing and profit sharing.Our government wants to replace softer condiˉtions with harder conditions like bank loan,tax or contracting amount in order to promote SOEs efficiency.These suggestions were all based on partial problems of SOEs,so they didn t make effect.Afterward,some economists suggested that SOEs govˉernance structure should be reconstructed according to modern enterprises system.All in all,these industrial reforming sugˉgestions base themselves upon micro part of SOEs,so they didn t reach the core of SOEs problems-propriety rights.The fifteenth National congress put forward that some should advance and some should retreat.My article emphasis on SOEs retreat,with one central line of propriety rights. SOEs nominal propriety rights are held by government.But many groups can influence SOEs output,so the propriety rights in government hand are incomplete,SOE become a comˉmon propriety right,the problem of encourage and restrain apˉpear.The promise of propriety rights to managers in SOEs by government don t be made beforehand,and they can t be acˉ===================...