Firm Size, Technical Efficiency and Productivity Growth in Chinese Industry
AbstractSince the mid-1990s, Chinaâ€™s state leadership has adopted a policy of nurturing the competitiveness of large state-owned industrial enterprises. The implications of this policy have been a matter of debate in the literature. This paper seeks to provide some useful input into the debate. With a view of investigating into the potential of long-term development of large enterprises, we estimate the â€œsequential production technologyâ€ in computing the Malmquist productivity index for various size-groups of enterprises in Chinese industry. Our findings indicate that large enterprises did register the fastest productivity growth and improvement in technical efficiency in the 1994-97 period. It thus appears that large-scale, mainly state-owned Chinese enterprises have exhibited the potential of making noticeable improvements and the relevant state policy does have its justification.
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Bibliographic InfoPaper provided by Department of Economics, SOAS, University of London, UK in its series Working Papers with number 144.
Length: 32 pages
Date of creation: Oct 2004
Date of revision:
firm size; technical efficiency; productivity; China; industry;
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