Flashcards in State Capitalism Deck (7)
What is state capitalism?
An economic system in which the state undertakes economic activities
Which are some characteristics of state capitalism?
-Heavy presence of state-owned enterprises
-Selective use of industrial & trade policy
-Close relations between the business / commercial sector & the state
What are state-owned enterprises?
Business entities established by central & local governments, whose supervisory officials are from the government
What are state-controlled enterprises?
Business firms whose majority shares belong either to a government or to a state-owned enterprise
Which are some strategic sectors within state capitalism?
-Power / energy
How are state-owned enterprises favored?
-Preferred access to bank capital
-Below-market interest rates
-Favorable tax treatment / exemption
-Capital injections when needed
-Curtailing of competition
-Government procurement projects