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Formation of Enterprise Groups in China: Present Status and Future Direction
industrial policy
Author Ick Soo Kim Series 92-12 Language Korean Date 1992.06.24
Although formation of enterprise groups in China is still in the process of the development and transfiguration, and their statistical data is not good, a tentative conclusion in regard of their fosterage policy and institution is reached as follow. First, since enterprise groups in China were mostly formed through administrative mergers from 1979 to 1989, there are very small numbers of real enterprise groups.
Microscopic effect achieving economies of scale through the segmentation and specialization among enterprises is seen to be great in the well-combined and systemic sectors for steel, automobiles and petrochemistry. However, it is not so great in the other sections. Distribution efficiency and inefficiency by industry is estimated to be unsymmetrical and having only temporary impact.
Microscopic effect achieving economies of scale through the segmentation and specialization among enterprises is seen to be great in the well-combined and systemic sectors for steel, automobiles and petrochemistry. However, it is not so great in the other sections. Distribution efficiency and inefficiency by industry is estimated to be unsymmetrical and having only temporary impact.
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