Productivity growth and ownership change in China: 1998-2007

Jing Liu and Shutao Cao

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies the industry productivity dynamics in China’s manufacturing sector from 1998 to 2007, and in particular, explores to what extent the privatization of state-owned enterprises (SOEs) contributes to the aggregate productivity growth. Our results show that, though non-SOEs on average are more productive than SOEs, the average productivity growth among SOEs is greater than the privately-owned firms. Industry concentration, taxation, and credit market all account for this difference in growth between SOEs and non-SOEs. In addition, industry productivity growth is mainly attributed to the growth of non-SOEs, entry of non-SOE firms, and the exit of SOEs. However, non-SOE firms that are transformed directly from SOEs make a small but negative contribution to industry productivity growth.

Keywords: Productivity Growth; Industry Dynamics; Ownership Change; Reallocation (search for similar items in EconPapers)
JEL-codes: D24 E6 O4 (search for similar items in EconPapers)
Date: 2011-04-15, Revised 2011-09-04
New Economics Papers: this item is included in nep-bec, nep-eff, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Productivity Growth and Ownership Change in China: 1998-2007 (2011)
Working Paper: Productivity growth and ownership change in China: 1998-2007 (2011)
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