Economics at your fingertips  

Has China’s Economic Reform Improved Enterprise Performance? A DEA Evaluation Of China’s Large And Medium Enterprises

Qing Yang ()

Working Papers from Centre for Business Research, University of Cambridge

Abstract: This paper attempts to investigate whether China’s economic reform has improved enterprise performance, and what determine enterprise efficiency in the context of China’s transition. Contrast to the results of improving enterprise performance measured by TFP from other studies, this paper find that there is a general tendency of divergence of enterprise efficiency rather than a convergence of firm’s efficiency as is expected from a competitive market. Similar to other studies, this paper has also confirmed that SOEs are less efficient than COEs. Why SOEs are less efficient, and how do Chinese firms respond to China’s gradual economic reform and increasing market competition? Further econometric analysis suggests that firms of different ownership types seem to respond similarly to catch up with technology frontier, indicating that firms’ efficiency gap may arise from their historical legacy; enterprise reform characterised by profit retention program have improved firms’ efficiency at the initial stage of reform, but this positive effect has been diminishing; market competition seems to be working, but ineffectively.

Keywords: Economic Reform; Enterprise Efficiency; DEA; China (search for similar items in EconPapers)
JEL-codes: D24 L23 P31 P27 (search for similar items in EconPapers)
Date: 2004-06
New Economics Papers: this item is included in nep-sea and nep-tra
Note: PRO-1
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) ... ing-papers/wp287.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:

Access Statistics for this paper

More papers in Working Papers from Centre for Business Research, University of Cambridge
Bibliographic data for series maintained by Ruth Newman and Georgie Cohen ().

Page updated 2020-11-27
Handle: RePEc:cbr:cbrwps:wp287