State-owned enterprises, competition and product quality

Nabin, Muniral H., Sgro, Pasquale M., Nguyen, Xuan and Chao, Chi Chur 2016, State-owned enterprises, competition and product quality, International review of economics and finance, vol. 43, pp. 200-209, doi: 10.1016/j.iref.2016.02.009.

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Title State-owned enterprises, competition and product quality
Author(s) Nabin, Muniral H.ORCID iD for Nabin, Muniral H.
Sgro, Pasquale M.ORCID iD for Sgro, Pasquale M.
Nguyen, XuanORCID iD for Nguyen, Xuan
Chao, Chi ChurORCID iD for Chao, Chi Chur
Journal name International review of economics and finance
Volume number 43
Start page 200
End page 209
Total pages 10
Publisher Elsevier
Place of publication Amsterdam, The Netherlands
Publication date 2016-05
ISSN 1873-8036
Keyword(s) SOEs
product quality
Summary We consider a general oligopoly model with consumer surplus moderated quantity competition among state-owned enterprises (SOEs), where the SOEs employ workers who are members of the state-owned worker union and produce differentiated products. We show that increasing the number of SOEs would lead to an outcome in which these enterprises choose a lower level of product quality and this, in turn, results in welfare losses for the society, depending on the degree of substitutability. Our findings are consistent with the evidence from China and uncovers important linkages that exist between worker union, product quality and competition, and that have mostly been ignored in the industrial organisation, trade and development literature.
Language eng
DOI 10.1016/j.iref.2016.02.009
Field of Research 140202 Economic Development and Growth
1402 Applied Economics
1502 Banking, Finance And Investment
Socio Economic Objective 910303 Trade Policy
HERDC Research category C1 Refereed article in a scholarly journal
ERA Research output type C Journal article
Copyright notice ©2016, Elsevier
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Document type: Journal Article
Collections: Faculty of Business and Law
Department of Economics
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