WWW.ABSTRACT.XLIBX.INFO
FREE ELECTRONIC LIBRARY - Abstract, dissertation, book
 
<< HOME
CONTACTS



Pages:     | 1 |   ...   | 50 | 51 || 53 | 54 |   ...   | 69 |

«Inaugural-Dissertation zur Erlangung des Doktorgrades des Fachbereichs Wirtschaftswissenschaften der Johann-Wolfgang Goethe-Universität Frankfurt am ...»

-- [ Page 52 ] --

Foreign investors can set up various forms of joint ventures. The most common form is the equity joint venture. It is a limited liability company with the joint venture parties taking responsibility for losses and profits according to the ratio of their equity stake. They are also part of the hybrid sector mentioned by Goodman.1333 In sum, the non-state sector is a mixture of the most variant forms of ownership and financial structures and it differs a lot from official recordings. It also is very different spatially, so that different sets of enterprise forms exists in different localities, depending on the local institutional setting and preconditions. However, in general it seems safe to say that it is - at least in the case of actual collective and state-owned enterprises - a far less dynamic sector and less influential on the development of the Chinese economy than the private sector.

7.1.2.2. Private sector The private sector is also defined as the non-state (opposed to ‗state‘) sector. The private sector consists mainly of two types of private enterprises, namely the sīyíng qǐyè, which is the official Chinese term for private enterprise. It stands for enterprises with at least 90 percent privately owned assets employing more than eight people. It also is the private variant of the shareholding co-operative. The number of employees distinguishes it from the smaller getihu (geti gongshanghu) of the so-called self-employed entrepreneur who employs less than eight workers. The getihu is not considered a formal enterprise legally.1334 This form of enterprise is also called household enterprise or even specialized household as they are typically family businesses that only employ (extended) family David Goodman: ―The emerging public sector in Shanxi: Entrepreneurs and enterprise as risk under reform‖. Paper prepared for UNSW-UTS Centre for Research on Provincial China, Taiyuan, October 2000, pp. 7-11 as quoted in Holbig, 2002, p. 37.

ten Brink, 2010, p. 21.

Holbig, 2002, p. 32f. The ideological rationale behind the eight employee limit comes from Marx‘ Kapital. Marx stated that capitalist with more than eight workers are exploitative and surplus accumulating, but the other merely household production units. Tsai, 2006b, p. 128.

members.1335 Also, there are the privately-run shareholding companies, so-called individually contracted (fake) collectives (jia jítǐ) which are financed by private individuals. Also Chinese-foreign joint ventures can be private, but often are also seen as rather hybrid ownership form.1336 In Wenzhou, the jia jítǐ were granted collective tax rates and the same eligibility for bank loans as collectives. However, they also were operated by private investors that had no restrictions on the number of employees but had certain guidelines for the distribution of after-tax profits. This arrangement was accepted locally, but contested already on the provincial level. It led to a nation-wide discussion on the status of this form of enterprise and in the end to a legitimization of it. ―In reality, there was little difference in the day-today management and operation of private firms before and after the transition to the shareholding cooperative form‖. As will be outlined in more depth below, this demonstrates the role model function of Wenzhou for the rest of the Chinese private economy.1337 The implications of running a private enterprise compared to collective enterprises will also analyzed in chapter 8. However, the case of Wenzhou is a particularly illuminating example of the development and difficulties of the private sector in China and will be discussed in depth below.

The methods of tax extraction employed by local governments are a major incentive to register as either private or collective firm. Depending on the ownership structure, these varied widely within and between localities (see also chapter 8).1338 However, ―[i]f one were to examine the organization of the textile industry...in China in the past decade...., it would be apparent that the economic organization in all of these sectors share organizational features of putting-out systems of productions that existed a century earlier.[…] Like a century ago, the production networks shaped by these big buyers [Walmart, Home Depot, Nike...] emphasize piecework (called batch-production system) and flexible work routines.

These factors give advantages to factories with low overhead (such as small and mediumsized family-owned firms) and to flexibility in organizing production networks that can expand or contract with changing demand. The technology used in such factories must necessarily match the manufacturing jobs being done and the resources available to those Nee and Sijin, 1990, p. 10.

Heberer, 2007, p. 20, Whiting, 2001, p. 36, 261.

Whiting, 2001, p. 159-163. Local entrepreneurs wanted their private firms to be considered as collective in nature (because this was considered as more secure). However, it also meant that local officials have control over the firm‘s assets. Wenzhou‘s party secretary stated: ―A collective enterprise is too public; a private enterprise is too private – if too public, one fears domination; if too private, one fears having one‘s ‗capitalist tail‘ cut off. Shareholding cooperatives are both public and private combined and are the most appealing‖.

Whiting, 2001, p. 212.

running the businesses. Inevitably, the technology used in such circumstances is simpler and less costly than that deployed in larger vertically integrated factories‖.1339 7.1.3. The Chinese private sector: definition and some data

–  –  –





As already indicated in chapter 5, the Chinese data collection is far from being transparent. The same goes for a definition of the private sector and the question, which firms and ownership structures are defined to be included. Measures like ‗red hat‘ entrepreneurs or nebulous ownership arrangements like in the TVEs make that a difficult task. Traditionally, Chinese statistics differentiate four ownership structures: state-owned, collective, private and foreign-funded. Among those, the ‗private‘ category was always the most difficult to define. Even the terminology is complicated: the Chinese term for private sector, sīyíng jīngjì, is more commonly used in the eastern provinces (literally it means privately operated economy), whereas in less developed provinces, the term mínyíng jīngjì is preferred to avoid capitalist connotations with the word sī (meaning private). Even more sensitive is the expression non-state sector (or non publicly-owned economy: fēi gōngyǒuzhi jīngjì). It comprises all ownership forms that are not state-owned, including sīyíng qǐyè and getihu, but also foreign-invested enterprises and other very diverse ownership forms such as shareholding companies and so-called ‗red hat‘ enterprises, i.e. nominally collective, but actually private enterprises. This variety of enterprise types, that includes hybrid forms of ownership structure, makes this term statistically less transparent.1341 Moreover, as already mentioned before, David Goodman finds that an entire new sector developed between state and privately-owned firms. He subsumes all hybrid forms of ownership in a hybrid sector he calls the ‗new public sector‘. He even claims that entrepreneurs engaging in this sector are the more successful ones, which makes the notion of the dynamic private versus the inert state sector difficult to uphold.1342 A more recent terminology is to distinguish between SMEs (zhong xiao qǐyè, reportedly 80 to 90 percent of Chinese enterprises) and large enterprises (most of which are SOEs), which also does not reveal much about the Hamilton and Chang, 2003, p. 204.

Huang, 2008, p. 13.

Holbig, 2002, p. 32.

David Goodman: ―The emerging public sector in Shanxi: Entrepreneurs and enterprise as risk under reform‖. Paper prepared for UNSW-UTS Centre for Research on Provincial China, Taiyuan, October 2000, pp. 7-11 as quoted in Holbig, 2002, p. 37f. See also chapter 8.2.

ownership.1343 Since 1988, when the first amendment of the constitution and a corresponding law on the regulation of private enterprises were enacted, the official Chinese term for private enterprise is sīyíng qǐyè. It stands for enterprises with at least 90 percent privately owned assets employing more than eight people. The latter criterion distinguishes it from the smaller getihu (geti gongshanghu), which is the so-called self-employed entrepreneur who employs less than eight workers and is not considered a formal enterprise legally. Together, these two forms form the private sector as such, which is said to produce 20 percent of China‘s GDP in 2001, following data obtained from Heike Holbig.1344 Data of the NBS on the private sector has the additional caveat that it is biased towards larger firms and only includes those with a sales volume over five million Yuan. Hence, an OECD study of 2005 using this data comes to the conclusion that the private economy accounted for 52.3 percent of industrial value-added in 2003, compared with 27.9 percent in 1998.1345 However, in contrast to the categorization used by the NBS that defines ownership by their registration status, the OECD uses a conventional definition of firm ownership, taken from contemporary theories of the firm, namely that ―ownership should be defined in terms of what shareholder controls the ‗residual rights‘ of the firm, in the sense of who dictates unforeseen contingencies‖.1346 Thus, they separate firms by the type of controlling shareholder.

With this method they seek to overcome the usual difficulties with defining the private sector. Share capital greater than 50 percent determines which kind of firm it is: state, collective or private. They also find that ―[t]he growth of the private sector has not been even across the country. An overwhelming share of private industrial output is produced in the eastern coastal region (Zhejiang, Guangdong and Jiangsu provinces), that has been at the forefront of all types of reforms. In this region the share of industrial value added from the private sector is 63 percent against only 32 percent in other regions. These other regions are about five years behind in the development of the private sector. However, the central, western, and north-eastern regions‘ private sectors have been growing faster than the coastal areas‘ over the five years to 2003, suggesting that catch-up is underway‖.1347 By 2007, the value-added of the eastern coastal provinces had increased to 80 percent; it had also increased to almost 50 percent in the rest of country, except in the underdeveloped western provinces (and Heilongjiang in the Northeast). This is evidence of the growing Holbig, 2002, p. 34f.

Holbig, 2002, p. 32f., Nee and Opper, 2010, p. 6.

Huang, 2008, p. 14f., Dougherty and Herd, 2005.

Dougherty and Herd, 2005, p. 8.

Dougherty and Herd, 2005, p. 8f.

convergence within the country – at least when the poorer Western provinces are excluded.1348 Huang uses the same methodology than the OECD Economic Survey but comes to a far lesser percentage, namely 22 percent of industrial value-added in 2005. Throughout his book he bases his arguments on the relatively small size of private sector. His measures are so significantly smaller because he defines a certain type of ownership as collective, not private, namely the legal-person shareholding firms because he argues that these are owned by firms via cross-shareholding, which means that they are merely subsidiaries of SOEs.1349 However, the ―hallmarks of a market economy is the role and magnitude of the private sector…there is no straightforward answer to this seemingly direct question about the size of the Chinese private sector….deliberately vague ownership structures‖.1350 According to an article of BusinessWeek of 2005, the private sector already reached a share of 70 percent of the private sector in GDP.1351 The article does not give a source for this estimate, but it is commonly found in more recent articles on the private sector, probably extrapolating the share of Eastern provinces to the entire country. According to the OECD Economic survey of 2005, the ―private sector was responsible for as much as 57 percent of the value-added produced by the non-farm business sector in 2003‖. This report also regards the private sector as the driving force of development and economic growth.1352 A ADB report of 2007 finds that ―[t]he PRC‘s private sector now accounts for more than 40 percent of GDP, 60 percent of growth, and 75 percent of the new jobs being generated‖.1353 However, this data is difficult to verify as in official statistics small private enterprises are not registered and many private enterprises are still registered as collectives to escape predatory taxes and fees (see also chapter 8). If the fēi gōngyǒuzhi jīngjì was reported, it already in 1996 had a share of 31 percent of industrial output value and 53 percent of consumer goods retail sales and were growing ever since.1354 In terms of absolute numbers there were 1.76 million sīyíng qǐyè registered in 2000 and 2.03 million in the end of 2001, employing 24.06 persons. The number of getihu has during that period of time officially decreased from 25.71 million at the end of 2000 to 24.23 million at the end of 2001 (from a peak of 31 million in 1999). Heike Holbig traces that back to a technical change in statisOECD, 2010, p. 106f.

Huang, 2008, p. 16ff.

Huang, 2008, p. 8.

Gang, 2005, accessed 25 November 2010.

OECD, 2005, accessed 25 November 2010 Asian Development Bank, 2007, p. 48 and similar Dougherty and Herd, 2005.

Holbig, 2002, p. 35.

tical recording and an overall confusion on how to count that category correctly.1355 The private sector with both forms of private enterprises together employed 82.63 million people at the end of 1999 and only 74.77 a year later, due to the decrease of registered getihu. Another unofficial data source estimated 130 million employees in the private sector for 2000 and the China Daily cites a study that by 2005 29.3 million private businesses (getihu and sīyíng qǐyè together) employ over 200 million people and are accounting for

49.7 percent of GDP.1356 However, nobody knows for sure how many people are actually working in the private sector.



Pages:     | 1 |   ...   | 50 | 51 || 53 | 54 |   ...   | 69 |


Similar works:

«Student Research Projects/Outputs No.034 Organic Food in Europe Andrew Cai MBA 2009 China Europe International Business School 699, Hong Feng Road Pudong, Shanghai People’s Republic of China 1 Opportunity 1.1 Individual customers look for local organic food More than 50% of European, in varying frequency, purchased organic food in 2009, out of which, 47% were worried that big companies may not exactingly follow organic guidelines, and thus show distrust towards them. In respect to consumers...»

«Contents Preface Acknowledgments Introduction Six Themes of the 24 Steps Step 0: Getting Started Three Ways to Start a New Venture How to Go from “I Have a Passion” to “I Have an Idea or Technology” Finding a Founding Team: Entrepreneurship Is not a Solo Sport Where You Go from Here Step 1: Market Segmentation In This Step, You Will: The Single Necessary and Sufficient Condition for a Business Create a New Market That You Will Dominate When “Paying Customers” Lead You Astray Complex...»

«ESSAYS IN INTERNATIONAL FINANCE No. 143, July 1981 INTERNATIONAL TRADE AND INVESTMENT: TWO PERSPECTIVES MARINA v. N. WHITMAN INTERNATIONAL FINANCE SECTION DEPARTMENT OF ECONOMICS PRINCETON UNIVERSITY Princeton, New,Jersey This is the one hundred and forty-third number in the series ESSAYS IN INTERNATIONAL FINANCE, published from time to time by the International Finance Section of the Department of Economics of Princeton University. The author, Marina v. N. Whitman, is Vice-President and Chief...»

«2014 Researching Your Civil War Ancestor Historical Society of Cheshire County Keene, NH Researching Your Civil War Ancestor Historical Society of Cheshire County More than 3 million men took part in the American Civil War between 1861 and 1865. Perhaps your ancestor was one of them. Here are some ways to research your family members at the Historical Society of Cheshire County.Overview of the Collection: With more than 300,000 items of regional historical interest, the Society’s archives...»

«Safer Management Practices for Small Poultry Processors By Kevin Backes The Backes family has been in the business of raising and processing chickens and turkeys since 1932, beginning on the family farm. Their plant, located in Loose Creek, MO, has been with USDA and MO State Meat Inspection Program for over 40 years and has been used by both to train inspectors and giving helpful advice to individuals interested starting their own processing businesses. Backes Poultry raises and processes...»

«Contents List of Tables viii Acknowledgements ix Notes on the Contributors x 1 Globalization, Insecurities and Responses: an Introductory Essay Barbara Harriss-White 1 2 Economic Globalism and Political Universalism: Conflicting Issues? Samir Amin 43 3 Global Capitalism and National Politics Colin Leys 75 4 Globalization and Sustainability Wolfgang Sachs 108 5 The Peaceful Settlement of Disputes between States and the Problem of Globalization Ian Brownlie 137 6 The Security of International...»

«CONSERVATOIRE NATIONAL ARTS ET METIERS LIRSA Laboratoire interdisciplinaire de recherche en sciences de l'action EA 4603 ED Abbé Grégoire THÈSE Présentée par SANGEETHA LAKSHMAN Soutenue le 3 Décembre 2013 Pour obtenir le Doctorat en Sciences de Gestion MULTINATIONAL COMPANIES EXECUTIVE SELECTION PRACTICES – CHALLENGES OF HUMAN RESOURCE MANAGEMENT IN INTERNATIONAL BUSINESS MANAGEMENT THÈSE dirigée par : Christophe ESTAY, Directeur de la recherche à Kedge Business School, HDR...»

«EVALUATING CALIFORNIA WATER SUPPLY COST-EFFECTIVENESS ANALYSIS Fielding L. Greaves B.A., University of California, Santa Cruz, 2006 THESIS Submitted in partial satisfaction of the requirement for the degree of MASTER OF PUBLIC POLICY AND ADMINISTRATION at CALIFORNIA STATE UNIVERSITY, SACRAMENTO FALL © 2011 Fielding L. Greaves ALL RIGHTS RESERVED ii EVALUATING CALIFORNIA WATER SUPPLY COST-EFFECTIVENESS ANALYSIS A Thesis by Fielding L. Greaves Approved by:, Committee Chair Robert Wassmer, Ph.D....»

«Channel Incentive Travel: A Case Study Presented to the Incentive Research Foundation October 2011 Kimberly Swinson Severt, Ph.D University of Central Florida Rosen College of Hospitality Management Orlando, Florida Kimberly.severt@ucf.edu Tom Rutkowski, Ed.D Castleton State College Business Administration Department Castleton, Vermont Tom.rutkowski@castleton.edu Table of Contents Executive Summary Background Objectives of the Study Research Questions Incentive Travel Literature Methodology...»

«WP/11/127 The IMF’s Government Finance Statistics Yearbook – Maps of Government for 74 Countries Claudia Dziobek, Miguel Alves, Majdeline El Rayess, Carlos Gutierrez Mangas, and Phebby Kufa © 2011 International Monetary Fund WP/11/127 IMF Working Paper Statistics Department The IMF’s Government Finance Statistics Yearbook Maps of Government for 74 Countries Prepared by Claudia Dziobek, Miguel Alves, Majdeline El Rayess Carlos Gutierrez Mangas, and Phebby Kufa June 2010 ABSTRACT A useful...»

«Carlo S Vendetta And, in they have a more product with Enterprise responses of estate work is numerous. You here kept this mutual account part provide it you seemed to promote a one electronics of our online importat as 24 estate. Like they in a place percent plus at shareholders that them, and witness of estate is out. Loans will ask the social % for money Wait. Being to experienced score amenities, the business from Non-Coverage Mortgage Administration to save definitely the tractors for...»

«Int. J. Shipping and Transport Logistics, Vol. 4, No. 4, 2012 323 South-South trade liberalisation and shipping geography: a case study on India, Brazil, and South Africa Tsung-Chen Lee Department of Economics, National Taipei University, 151, University Rd., San Shia District, New Taipei City, 23741, Taiwan E-mail: tclee@mail.ntpu.edu.tw Paul T.W. Lee* Department of Logistics and Shipping Management, Kainan University, No. 1, Kainan Road, Luzhu Shiang, Taoyuan 33857, Taiwan E-mail:...»





 
<<  HOME   |    CONTACTS
2016 www.abstract.xlibx.info - Free e-library - Abstract, dissertation, book

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.