Publication

This paper examines the effect of China's 2001 World Trade Organization (WTO) membership on its state owned enterprise (SOE) sector. The authors argue that WTO accession is a major step in China's economic reform and that restructuring the SOE sector is crucial to reform efforts. They show that although the SOE sector has been a target of economic reform, its improvement has yet to be achieved. The paper presents evidence of the poor economic performance of SOEs and the burden they represent to Chinese economic growth.