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China's Private Economy: Institution Innovations and Development

Author: Li Wei'an

ISBN: 978-1-84464-492-6

Ebook ISBN: 978-1-84464-493-3

Hardback-524 Pages

September 2018


£90 €110 $150



Based on Institutional Economics, Evolutional Economics, Comparative Institutional Analysis and Management Theory, tracking the institutional innovation during the development of the private economy, this book constructs a common analytical framework for studies on institutional innovation and the development of the private economy. Firstly, the book analyses the process and mechanism of the private economy’s evolution, and abstracts a more common pattern of the private economy’s evolution that is featured by interaction between multiple forces and the push of both government and the private, and breaks the limitation of regional pattern. Secondly, the book makes a deep analysis of some key problems faced by the private economy, explores the innovational mechanism in entrepreneurial behavior, financing choice, equity arrangement and governance optimization, and internationalization of private firms. Lastly, the book evaluates the developing status of the private economy and private firms, and gives some advice on institutional innovation and development of private economy.

As everyone knows, the main sectors were dominated by state-owned enterprises in China before the implementation of the reform and opening-up policy. The private economy was hardly seen then. After the reform, China encouraged the development of private economy. The big success achieved in China was partly due to the boost of private economy. This book analyses the development of China’s private economy, as well as the challenges it faces, and the advices on institutional innovation and development of private economy.



Part I Theoretical Analysis on Private Economy Evolution and Institution Innovation

Chapter 1 Institutional Change and Organizational Evolution in the Development of Private Economy

1. 1 Emergence and evolution mechanism of private economy

1. 2 Motivation of the evolution of private economy organization: productivity competition and institutional complementariness

Chapter 2 Dynamic Process of Private Economy Institution Innovations

2. 1 The matching of the development of private economy and the speed of technological progress

2. 2 Information asymmetry, adverse selection and private economic development

Part II Development Barrier and Institution Innovation of Private Enterprise

Chapter 3 Entrepreneurial Behavior and Entrepreneur Environment of Private Enterprise

3. 1 Characteristics of entrepreneurial activity in China

3. 2 Entrepreneurial behavior of entrepreneurs

3. 3 Entrepreneurial activity and enterprise performance

Chapter 4 Analysis on Financing Obstacles for Private Enterprises

4. 1 Different endowments and financing choice for private economy in initial stage

4. 2 Institutional rent changes and financing choice for private enterprise

4. 3 Mode selection and governance of financial subject privatization

Chapter 5 Governance Issues in the Growth of Private Enterprises

5. 1 Governance "inflection point" in the growth of private enterprises: institutional obstacles

and property rights concern

5. 2 Principal-agent relationship and control transfer in family business

Chapter 6Institutional Environment in International Development Process of Private Enterprises

6. 1 Characteristics of export behavior of private enterprises

6. 2 Institutional obstacles and institutional supply in the export development of private enterprises in Zhejiang province

Part Ill Evaluation and Countermeasure of Private Economy and Enterprise Development

Chapter 7 Evaluation on the Governance of Private Listed Companies

7. 1 Analytical framework of corporate governance for private listed companies

7. 2 Evaluation of equity structure and shareholders' behavior of private listed companies

7. 3 Structure and operation of the board of directors in private listed companies

7. 4 Governance evaluation of the board of supervisors in private listed companies

7. 5 Evaluation on managerial governance of private listed companies

7. 6 Evaluation of private listed company's information disclosure

7. 7 Analysis of private listed companies' governance index

Chapter 8 Policy Suggestions on Institution Innovation and Development of Private Economy

8. 1 Conclusions and policy suggestions of institutional change and organizational evolution

in private economy development

8. 2 Conclusions and policy suggestions of dynamic process of private economic system innovation

8. 3 Conclusions and policy suggestions of entrepreneurial behavior of private enterprises and

entrepreneurial environment

8. 4 Conclusions and policy suggestions of financing obstacles for private enterprises

8. 5 Conclusions and policy suggestions of institutional environment in the process of internationalization of private enterprises

8. 6 Conclusions and policy suggestions of evaluation on the governance of private listed companies


About Author:

Li Wei-an, was born in January 1957. He is a National Chang Jiang Scholar Distinguished Professor (awarded by Ministry of Education of China). Professor Li is currently Deputy Secretary of CPC Committee and President of Tianjin University of Finance and Economics. Professor Li has been responsible for about 30 projects, supported by National Natural Science Foundation of China, National Social Science Foundation of China, Science Foundation of Ministry of Education of China. He has published many academic papers in top journals and writings in corporate governance, network organizations and industrial organization.

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