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Government‐Owned Businesses: Market Presence, Competitive Advantages and Rationales for Their Support by the State
Author(s) -
Nielsen Richard P.
Publication year - 1982
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1982.tb01663.x
Subject(s) - multinational corporation , business , competition (biology) , market economy , government (linguistics) , production (economics) , corporation , state (computer science) , domestic market , dominance (genetics) , commerce , economics , economic policy , international trade , finance , ecology , linguistics , philosophy , biochemistry , chemistry , macroeconomics , algorithm , computer science , gene , biology
A bstract . In the aggregate, within industries and within non‐socialist countries, the market presence of State‐owned businesses is large and growing. Such concerns accounted for 15 percent of world trade in 1979 and they produced 70 percent of world oil production , 40 percent of world iron and bauxite and they accounted for 40 percent of the world's banking assets. Certain governments tend to accord them competitive advantages. Reasons given for doing so range from the belief that they foster economic growth and employment , that they equalize the domestic businesses' power to compete with big multinational companies , that they make national planning possible, to the idea that government favor should not go to benefit private owners , even domestic ones, and that the country, rather than the corporation, is the relevant unit of competition.