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Productivity Evolution of Chinese Large and Small Firms in the Era of Globalization

In: Globalization and Performance of Small and Large Firms

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  • Yifan Zhang

Abstract

Using a large firm-level dataset from Chinese manufacturing industry, this paper studies the productivity gap and productivity convergence between large and small firms in China. We find that small firms are less productive relative to large firms, but the productivity gap became smaller over the sample period 1999-2007. Based on the static and dynamic Blinder-Oaxaca decompositions, we distinguish the endowment effect from the return effect, and quantify the impacts of export and FDI on the productivity gap and productivity convergence.

Suggested Citation

  • Yifan Zhang, . "Productivity Evolution of Chinese Large and Small Firms in the Era of Globalization," Chapters, in: Chin Hee Hahn & Dionisius A. Narjoko (ed.), Globalization and Performance of Small and Large Firms, chapter 4, pages IV-1 - IV, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:chaptr:2013-rpr-03-4
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    More about this item

    Keywords

    China; Small firms; Productivity; Globalization;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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