What effect does the size of the state-owned sector have on regional growth in China?
AbstractThis abstract will be reformatted upon submission. You don't need to format for line-breaks here!!!!! This paper tests the contributions of the size of state-owned enterprises as a determinant of Chinaâs economic growth. The methodology is discussed in papers by Levine and Renelt (1992) and Sala-i-Martin (1997). We estimate regressions with growth of output and total factor productivity as the dependent variable and a variety of other factors, including measures of the size of the state-run sector, as regressors. We find that controlling for a variety of other factors, the greater the importance of state owned enterprises, as measured by the proportion of total industrial production they produce, the lower the provincial growth rate. The average estimate is that a decrease in the SOE share of industrial production by ten percentage points increases real GDP growth the following year by 1.14%. The average impacts of a reduction in the SOE share in employment are smaller in absolute magnitude and different for large provinces than they are for small ones. Large provinces actually have higher growth rates if this share rises, while smaller provinces have higher growth rates when it falls.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 15 (2005)
Issue (Month): 6 (January)
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Web page: http://www.elsevier.com/locate/asieco
Other versions of this item:
- Kerk L. Phillips & Shen Kunrong, 2003. "What Effect does the Size of the State-Owned Sector Have on Regional Growth in China?," Development and Comp Systems 0304006, EconWPA.
- H1 - Public Economics - - Structure and Scope of Government
- O0 - Economic Development, Technological Change, and Growth - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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