We look at privatization in a general equilibrium model of a small, tariff-distorted, open economy. There is a differentiated good produced by both private and public sector enterprises. A reduction in government production in order to cut losses from such production raises the returns to capital and increases the tariff revenue, which are welfare improving. However, privatization also leads to...

Abstract China's environmental crackdowns under Xi Jinping have led to a sweeping shutdown of private enterprises. To circumvent this, enterprises developed different survival strategies including direct lobbying government officials and indirect through business associations. Based on comparative case studies in Chinese cities, our research finds that larger enterprises, enjoying more economic...