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State-Owned Enterprises

How much influence should the state have on the private enterprise sector in the economy, and (how) should public ownership promote economic growth and development? These fundamental questions refer very much to the issue of state ownership and the existence of state-owned enterprises (SOEs).

Definition, Motives, and the Advantages and Disadvantages

SOEs are defined as business entities that are established by the government, either a central government or its local branches. The state holds a 100 percent or majority share in SOEs. Closely related to SOEs is state ownership through organizations that are controlled by the state or when the state and private entities hold joint shares (e.g., public-private partnerships) or the state exerts control via financial assistance and capital provision (e.g., through credit programs and ...

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