
Contents
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8.1 Introduction 8.1 Introduction
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8.2 Basic profile of the business groups in China 8.2 Basic profile of the business groups in China
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8.3 History of business groups in China 8.3 History of business groups in China
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8.4 The role of the state in the growth of business groups 8.4 The role of the state in the growth of business groups
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8.5 Corporate ownership, governance and agency costs 8.5 Corporate ownership, governance and agency costs
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8.6 Business structure and diversification 8.6 Business structure and diversification
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8.7 Efficiency and competitiveness 8.7 Efficiency and competitiveness
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8.8 Summary and concluding remarks 8.8 Summary and concluding remarks
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References References
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8 Business Groups in China
Get accessKeun Lee is a professor of economics at the Seoul National University, fellow of the CIFAR programme on Innovation, Equity and Prosperity, and founding director of the Center for Economic Catch-up. He is an editor of Research Policy and an associate editor of Industrial and Corporate Change. He served as president of the International Schumpeter Society (2016‒18), a member of the Committee for Development Policy of UN (2014‒18), and a council member of the World Economic Forum (2016‒19). He is the winner of the 2014 Schumpeter Prize for his monograph Schumpeterian Analysis of Economic Catch-up (Cambridge University Press, 2013), as well as the 2019 Kapp Prize from the EAEPE for his article on national innovation systems. He obtained his PhD in economics from the University of California, Berkeley. One of his most cited articles is the paper ‘Korea’s Technological Catch-up’ published in Research Policy, with 1,100 citations (Google Scholar). His H-index is 40, with about 100 papers with more than ten citations. His latest book is The Art of Economic Catch-up: Barriers, Detours, and Leapfrogging (Cambridge University Press, 2019).
Young -Sam Kang is Postdoctoral Fellow at the Department of Economics, Seoul National University, South Korea. His research interests include economic development and business economics. He has published in journals such as the Seoul Journal of Economics and Area Studies Review.
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Published:02 September 2010
Cite
Abstract
Apart from some incidence in the early twentieth century, modern-style business groups emerged in China in the mid-1980s as a consequence of the reform and restructuring of state-owned enterprises, which aimed at increasing economies of scale and specialization. Since their early emergence, a substantial number of Chinese business groups have succeeded in becoming major players in the world economy, and the Chinese government has played an important role in the formation and development of these business groups. This article provides a descriptive analysis of the business groups in China, extending and updating the recent literature. It discusses a basic profile and history of these business groups. It also focuses on the role of the state in the emergence of these groups. Finally, it discusses the problems of ownership structure and agency costs in these business groups, and deals with their business structure and diversification.
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