Reform and Competitive Selection in China: An Analysis of Firm Exits
Qing Yang () and
No 409, School of Economics Discussion Papers from School of Economics, University of Surrey
This paper considers aspects of the competitive selection process in China - firm entry, survival, and exit - in an important sector of manufacturing, looking in particular for changes resulting from the latest stage of reforms. Using industry survey data from a province in North-East China, we find substantial differences in the process between ownership types. By conducting a simple decomposition of the aggregate productivity growth and exploring the determinants of firm’s exit using a hazard rate model, we observe a substantial rate of churning of enterprises in the sector, and find that the competitive selection processes operate, for small and collectively owned enterprises (COEs), in a manner consistent with a private market economy. In contrast, such processes appear not to be functioning for state owned enterprises (SOEs). We conclude that competitive selection in China is not providing a sufficiently strong substitute for corporate governance based on ownership.
Keywords: Competition; Exit; Productivity, Hazard Models (search for similar items in EconPapers)
JEL-codes: C5 D2 L6 P5 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-cna, nep-com, nep-ent and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
Journal Article: Reform and competitive selection in China: An analysis of firm exits (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sur:surrec:0409
Access Statistics for this paper
More papers in School of Economics Discussion Papers from School of Economics, University of Surrey Contact information at EDIRC.
Bibliographic data for series maintained by Ioannis Lazopoulos ().