Productivity Evolution of Chinese Large and Small Firms in the Era of Globalisation

Yifan Zhang

No DP-2014-13, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Using a large firm-level dataset from the Chinese manufacturing industry, this paper studies the productivity gap and productivity convergence between large and small firms in China. We find that small firms are less productive relative to large firms, but the productivity gap became smaller over the sample period 1999–2007. Based on static and dynamic Blinder-Oaxaca decompositions, we distinguish the endowment effect from the return effect, and quantify the impacts of exports and FDI on the productivity gap and productivity convergence.

Keywords: China; Small firms; Productivity; Globalisation (search for similar items in EconPapers)
JEL-codes: F11 L22 O53 (search for similar items in EconPapers)
Pages: 36 pages.
Date: 2014
New Economics Papers: this item is included in nep-bec, nep-cna, nep-cse, nep-eff, nep-int and nep-tra
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Chapter: Productivity Evolution of Chinese Large and Small Firms in the Era of Globalization
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