Firm Size, Technical Efficiency and Productivity Growth in Chinese Industry

Yuk-Shing Cheng () and Dic Lo ()
Additional contact information
Yuk-Shing Cheng: Department of Economics, School of Business, Hong Kong Baptist University, H.K.
Dic Lo: Department of Economics, SOAS University of London, UK

No 144, Working Papers from Department of Economics, SOAS University of London, UK

Abstract: Since the mid-1990s, China’s state leadership has adopted a policy of nurturing the competitiveness of large state-owned industrial enterprises. The implications of this policy have been a matter of debate in the literature. This paper seeks to provide some useful input into the debate. With a view of investigating into the potential of long-term development of large enterprises, we estimate the “sequential production technology†in computing the Malmquist productivity index for various size-groups of enterprises in Chinese industry. Our findings indicate that large enterprises did register the fastest productivity growth and improvement in technical efficiency in the 1994-97 period. It thus appears that large-scale, mainly state-owned Chinese enterprises have exhibited the potential of making noticeable improvements and the relevant state policy does have its justification.

Keywords: firm size; technical efficiency; productivity; China; industry (search for similar items in EconPapers)
Pages: 32 pages
Date: 2004-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.soas.ac.uk/sites/default/files/2022-10/economics-wp144.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:soa:wpaper:144

Access Statistics for this paper

More papers in Working Papers from Department of Economics, SOAS University of London, UK Contact information at EDIRC.
Bibliographic data for series maintained by Chandni Dwarkasing ().