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IT, enterprise reform, and productivity in Chinese manufacturing firms

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  • Motohashi, Kazuyuki

Abstract

This paper is a first attempt at examining the impact that Information Technology (IT) and enterprise reform have on the productivity of Chinese manufacturing firms by using large-scale firm level datasets from 1995 to 2002. It is found that enterprise reforms captured by the entry and exit of firms have had a positive impact on aggregated productivity growth. In addition, IT plays a relatively important role in the productivity performance of post-reform enterprises, as opposed to enterprises which are not affected by major restructuring in the course of Chinese state-owned enterprise reforms.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 19 (2008)
Issue (Month): 4 (August)
Pages: 325-333

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Handle: RePEc:eee:asieco:v:19:y:2008:i:4:p:325-333

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Keywords: China Economic reform IT Productivity;

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References

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  1. Jorgenson, Dale W. & Motohashi, Kazuyuki, 2005. "Information technology and the Japanese economy," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 460-481, December.
  2. Watanabe, Mariko, 2002. "Holding company risk in China: a final step of state-owned enterprises reform and an emerging problem of corporate governance," China Economic Review, Elsevier, vol. 13(4), pages 373-381, December.
  3. Jefferson, Gary & Hu, Albert G. Z. & Guan, Xiaojing & Yu, Xiaoyun, 2003. "Ownership, performance, and innovation in China's large- and medium-size industrial enterprise sector," China Economic Review, Elsevier, vol. 14(1), pages 89-113.
  4. Kazuyuki Motohashi, 2004. "Firm level analysis of information network use and productivity in Japan," Hi-Stat Discussion Paper Series d03-14, Institute of Economic Research, Hitotsubashi University.
  5. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
  6. Z, Griliches & Jacques Mairesse, 1997. "Production Functions : The Search for Identification," Working Papers 97-30, Centre de Recherche en Economie et Statistique.
  7. Tian Zhu, 1999. "China'S Corporatization Drive: An Evaluation And Policy Implications," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 530-539, October.
  8. Jefferson, Gary H. & Rawski, Thomas G. & Li, Wang & Yuxin, Zheng, 2000. "Ownership, Productivity Change, and Financial Performance in Chinese Industry," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 786-813, December.
  9. Meng, Qingxuan & Li, Mingzhi, 2002. "New Economy and ICT development in China," Information Economics and Policy, Elsevier, vol. 14(2), pages 275-295, June.
  10. Gary H. Jefferson & Thomas G. Rawski, 1994. "Enterprise Reform in Chinese Industry," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 47-70, Spring.
  11. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
  12. Kazuyuki Motohashi & Xiao Yun, 2005. "China's Innovation System Reform and Growing Industry and Science Linkages," Discussion papers 05011, Research Institute of Economy, Trade and Industry (RIETI).
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Citations

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Cited by:
  1. MOTOHASHI Kazuyuki & YUAN Yuan, 2009. "IT, R&D and Productivity of Chinese Manufacturing Firms," Discussion papers 09007, Research Institute of Economy, Trade and Industry (RIETI).
  2. Grace Kite, 2012. "The Impact of Information Technology Outsourcing on Productivity and Output: New Evidence from India," Working Papers 173, Department of Economics, SOAS, University of London, UK.
  3. Tomohiro MACHIKITA & Masatsugu TSUJI & Yasushi UEKI, 2010. "How ICTs Raise Manufacturing Performance: Firm-level Evidence in Southeast Asia," Working Papers DP-2010-07, Economic Research Institute for ASEAN and East Asia (ERIA).

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