Hayek, Local Information, and Commanding Heights: Decentralizing State-Owned Enterprises in China

Time：March 30, 2017 (Thursday) 10:00am -11:30am

Location: Zhifuxuan Conference Room, National School of Development, Peking U.

Speaker: Lixing Li(李力行), Associate Professor, National School of Development, Peking University.

 

Abstract

Hayek (1945) argues that local information is a key to understanding the efficiency of alternative economic systems and whether production should be centralized or decentralized. The Chinese experience of decentralizing SOEs confirms this insight: when the distance to the government is farther, the SOE is more likely to be decentralized, and this distance-decentralization link is more pronounced with higher communication costs and greater firm-performance heterogeneity. However, when the Chinese central government oversees SOEs in strategic industries, the distance-decentralization link is muted. We also consider alternative agency-cost-based explanations, and do not find much support.

 

李力行老师是北京大学国家发展研究院副教授，美国马里兰大学经济学博士（2008）、硕士（2004），清华大学经济学学士（2002）。研究兴趣包括发展经济学、公共财政学、人力资本、城市经济学、政治经济学等。

 

For further information about the speaker, please visit:

http://en.nsd.pku.edu.cn/article.asp?articleid=6945

Your participation is warmly welcomed!