State-Owned Enterprises Trade Effects and Policy Implications

This publication examines the results of globalization on state-owned enterprises (SOEs). SOEs traditionally focused on domestic markets are increasingly forced to compete with gloal private companies as globalization accelerates. This paper shows the extent to which the state is present in various economic sectors and firms throughout the globe. Countries with a large state presence in their economy, and economic sectors with large state presence engage regularly in trade. The implications of this are unfair advantages and economic distortions due to the presence of the state in these areas. This paper overviews policies that are needed to overcome these challenges.