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A Quantitative analysis of ownership structure impact on economic operations – An empirical study on 2000-2012 experiences (No 158, 2014)


By Wu Zhenyu, Department of Macro-economy, Development Research Center of the State Council (DRC)

Report No 158, 2014 (Total 4657)


Ownership structure has a profound impact on macroeconomic operations and growth. A quantitative analysis of the impact of ownership structure on economic operations could be worked out by using a panel model containing data on ownership and economic operations in China's provincial industrial sector. Within the sample range, the analysis result indicates that an increase in the proportion of non-public economy can reduce the proportion of regional differences in deposits and loans and improve circulation of funds; it can increase the regional growth of investment in all industries and promote economic growth by increasing capital stock; it can enhance the percentage of exports and FDI in GDP and strengthen the export economy; it can curb the rising of regional prices, and ensure smooth economic operation. In light of the performance of agriculture, the service sector and certain industries under designated scale, the impact of optimized ownership structure may be greater. China is witnessing a transitional period of growth and while promoting the categorized reform of State-owned enterprise, efforts should be made to support the rapid and sound development of the non-public economy and help the non-public economy enjoy a reasonable part in the nation's economy, and promote economic growth to shift from quantity expansion to quality upgrading.