China's Productive State-Owned Asset Management System From The Transaction Cost Perspective

State-owned assets that belong to the whole people are fundamental to China's socialist basic economic system.Productive state-owned assets account for a large share of the GDP and occupy an important position in our economy.Scientific construction of Productive State-owned Assets Management System(PSAMS)is of strategic significance to economic development,which increases the value of productive state-owned assets and promotes the reform of the economic system.At present,there are some defects in PSAMS,such as the integration of government administration with enterprise and the difficulty of the mixed ownership economy.The paper analyzes the internal and external transaction cost of stateowned enterprise in PSAMS,researches the reform process and present problems from the transaction cost perspective and puts forward some feasible proposals.First of all,this paper seriously introduces transaction cost economics which serves as the theoretical guide of the reform,development and perfection of PSAMS.Secondly,the analytical framework of PSAMS which includes the transaction costs of state-owned enterprises and state-owned asset management sector,the transaction costs of choosing state-owned enterprises governance structure and state-owned enterprises' internal transaction costs is proposed,focusing on asset specificity from the transaction costs perspective.Thirdly,the motivation of PSAMS reform is discussed.This paper argues that gradual reform path is chosen by PSAMS because of the existence of path dependence.PSAMS explores the relationship between government and enterprise and increases the vitality of stateowned enterprises so as to lower transaction cost of state-owned enterprises.In the meanwhile,new demands for PSAMS is needed by state-owned enterprises with the efficiency improvement.Both promotes reciprocally to achieve the efficiency of state-owned assets operation.Fourthly,the cause of current problems is analyzed.High transaction costs of State-owned Assets Supervision and Administration Commission(SASAC)result in the integration of government administration with enterprise.High transaction costs of state-owned enterprises cause worse performance than the private sector.The transaction costs of stateowned enterprise governance structure prevent the development of mixed ownership.High entering barrier and withdrawal barrier make it hard for non-state capital flow into the field which is controlled by state-owned assets.Neglecting human-asset specificity leads to the lack of vitality.Finally,some suggestions is put forward in order to improve PSAMS.Economic environment is provided for stateowned enterprises governance structure through performing the function of capital market,perfecting markets of production actor and creating a fair competitive environment.Three-tier framework of PSAMS which consists of three important parts:SASAC,state-owned capital investment operation company and state-owned enterprises is proposed.SASAC performs the shareholder's rights of state-owned capital operation companies,which reduces its transaction cost and realizes the separation of government administration with enterprise and state-owned assets.State-owned capital investment operation companies run state-owned capital in a market-oriented way,aligning state-owned enterprises governance structure with productive state-owned asset specificity,uncertainty and the frequency with which transactions recur.State-owned enterprises become independent corporate body and lower its transaction cost by improving modern enterprise system.Meanwhile,superior institutional environment is created for PSAMS by perfecting law and regulation to defining and protect property right.