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China's industrial growth and efficiency: A comparison between the state and the TVE sectors

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  • Yiping Huang
  • Xin Meng

Abstract

This paper examines the productive efficiency and growth performance of China's state and TVE industrial sectors during the reform period. The meta‐production function approach is applied using enterprise survey data for the 1986–90 period. It is found that the rapid growth of the TVE sector was mainly driven by total factor productivity (TFP) growth and expansion of capital stock. In the state sector, however, the TFP was decreasing during that period. The TVE sector was still technically less efficient in the mid‐1980s but it was catching up with and about to reach the efficiency level of the state sector by the end of the 1980s. It is also found that industry‐wide allocative inefficiency between the two sectors was significant for skilled and unskilled labour but less so for capital.

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  • Yiping Huang & Xin Meng, 1997. "China's industrial growth and efficiency: A comparison between the state and the TVE sectors," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 2(1), pages 101-121.
    • Handle: RePEc:taf:rjapxx:v:2:y:1997:i:1:p:101-121
    DOI: 10.1080/13547869708724608
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    Cited by:

    1. Smyth, Russell, 2000. "Should China be Promoting Large-Scale Enterprises and Enterprise Groups?," World Development, Elsevier, vol. 28(4), pages 721-737, April.
    2. Jeffrey Sachs & Wing Thye Woo, 2003. "China's Economic Growth After WTO Membership," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(1), pages 1-31.

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