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The Impact of Privatization on TFP: a Quasi-Experiment in China

Author

Listed:
  • Xiaohua Wang

    (China Economics and Management Academy at Central University of Finance and Economics)

  • Zhi Luo

    (Economic Development Research Center of Wuhan University
    Economics and Management School at Wuhan University)

  • Tianyi Wang

    (School of Banking and Finance at University of International Business and Economics)

  • Zhuo Huang

    (National School of Development at Peking University)

Abstract

Using the data of SOEs and Non-SOEs in industrial sector of China from 1998 to 2007, we investigate the impact of privatization on TFP. We construct a difference in difference model and use propensity score method to avoid the selection bias. We use the type of enterprises registration to identify the SOEs and define the privatization. The regress results show, privatization of SOEs can improve the efficiency of enterprises significantly. Some characteristics of firms will affect the effect of privatization. Our results are robust even if we use another classification criterion of types of firms.

Suggested Citation

  • Xiaohua Wang & Zhi Luo & Tianyi Wang & Zhuo Huang, 2017. "The Impact of Privatization on TFP: a Quasi-Experiment in China," Annals of Economics and Finance, Society for AEF, vol. 18(1), pages 53-71, May.
    • Handle: RePEc:cuf:journl:y:2017:v:18:i:1:wang
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    References listed on IDEAS

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    More about this item

    Keywords

    Privatization; TFP; SOE;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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