1. Introduction - University at Albany, SUNY

With rapid processes of decentralization, marketization and globalization, the importance of state-owned sector is progressively declined in China’s transitional economy (Lin 2001, Wei 2001, Shen 2004, OECD 2000). Non-state sectors have played an increasingly significant role in the economic growth during the past two decades (OECD 2000). ................
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