Chapter 5. Comparison of Economic Efficiency.

Chapter 5 of the book "A Tortuous Road: The Relative Merits of State and Private Enterprises" is presented. China's government business enterprises and its privately owned corporations are compared. The government enterprises do not generate the same profits or tax revenues as do the private corporations, and their rate of growth has slowed in absolute terms. Thus, corporations organized on the capitalist model become an ever larger sector of the economy, while the government-owned sector continues to shrink. Speculation is presented as to how long the government will operate its businesses which lose money.