TY - JOUR
T1 - Where have China’s state monopolies gone?
AU - Hubbard, Paul
N1 - Publisher Copyright:
© 2016 Taylor & Francis.
PY - 2016/1/2
Y1 - 2016/1/2
N2 - If China’s economy is an example of “state-capitalism,” then its large, state-owned enterprises (SOEs) could be expected to monopolize key sectors. But previous estimates of industrial concentration, using the Herfindahl—Hirschman Index (HHI), have suggested that the level of industrial concentration—and therefore the potential for the abuse of monopoly power—is very low. These studies have significantly underestimated HHI, since they do not consolidate subsidiary enterprises in Chinese survey data into larger business groups, or according to ultimate ownership. After making these adjustments, a measure of potential HHI shows that large state monopolies remain in oil and gas, electricity, tobacco and, potentially, automobiles. In particular, SOEs supervised by the central government are heavily invested in potentially concentrated industries. But aggregate profits of the state sector are driven more by the portfolio distribution of assets between resources, manufacturing and utilities, rather than industrial concentration within sectors.
AB - If China’s economy is an example of “state-capitalism,” then its large, state-owned enterprises (SOEs) could be expected to monopolize key sectors. But previous estimates of industrial concentration, using the Herfindahl—Hirschman Index (HHI), have suggested that the level of industrial concentration—and therefore the potential for the abuse of monopoly power—is very low. These studies have significantly underestimated HHI, since they do not consolidate subsidiary enterprises in Chinese survey data into larger business groups, or according to ultimate ownership. After making these adjustments, a measure of potential HHI shows that large state monopolies remain in oil and gas, electricity, tobacco and, potentially, automobiles. In particular, SOEs supervised by the central government are heavily invested in potentially concentrated industries. But aggregate profits of the state sector are driven more by the portfolio distribution of assets between resources, manufacturing and utilities, rather than industrial concentration within sectors.
KW - Chinese economy
KW - industrial concentration
KW - state-owned enterprises
UR - http://www.scopus.com/inward/record.url?scp=84957886405&partnerID=8YFLogxK
U2 - 10.1080/17538963.2016.1138695
DO - 10.1080/17538963.2016.1138695
M3 - Article
SN - 1753-8963
VL - 9
SP - 75
EP - 99
JO - China Economic Journal
JF - China Economic Journal
IS - 1
ER -