Abstract
Based on the results from policy simulations, this report makes two policy suggestions as follows:
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Notes
- 1.
Junyuan Zhang and Wenpu Li, “A Preliminary estimate of the proportion of government revenue and expenditure structure in GDP,” working paper in CMR, 2012.
- 2.
Although the transfer of profits of SOEs to the public finance is rather low, and the retained profits by SOEs do not account for part of the public finance, the owner equity of SOEs should be owned by the government, just a deputy of the people as in law the equity of SOEs belong to all the people after excluding the welfare expenditure in the inner of SOEs according to the regulations. Therefore, all the profits of SOEs (excluding with the cost of employees) should belong to the whole society even these profits are the results of market competition with the other kinds of enterprises. Besides, some research pointed out that the current profits of SOEs contained much rents which should be levied by the government, and the average profits of SOEs were negative once excluding such rents from them. In other words, the current profits of SOEs were an abnormal transfer of state resource. Clearly, according to the actual source of the profits of SOEs, their profits were rather the resource revenue which belong to all the people.
- 3.
Pan Xie, International Comparison of the Distribution of National Income, working paper in CMR, 2011.
- 4.
Yanwu Wang, and Xi, Tian, Effect of Tax Burden and Structure on Consumption: Chinese Experience, working paper of CMR, 2012.
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Center for Macroeconomic Research of Xiamen University. (2014). Policy Implications and Suggestions. In: China’s Macroeconomic Outlook. Current Chinese Economic Report Series. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40044-5_4
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DOI: https://doi.org/10.1007/978-3-642-40044-5_4
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