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 China’s 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Development and Comp Systems with number 0304006.
Length: 21 pages
Date of creation: 16 Apr 2003
Date of revision:
Note: Type of Document - PDF; pages: 21; figures: included/request from author/draw your own
Contact details of provider:
Web page: http://220.127.116.11
growth regressions; China; State-Owned Enterprises;
Other versions of this item:
- Phillips, Kerk L. & Kunrong, Shen, 2005. "What effect does the size of the state-owned sector have on regional growth in China?," Journal of Asian Economics, Elsevier, vol. 15(6), pages 1079-1102, January.
- H1 - Public Economics - - Structure and Scope of Government
- O0 - Economic Development, Technological Change, and Growth - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-04-21 (All new papers)
- NEP-DEV-2003-04-21 (Development)
- NEP-GEO-2003-04-21 (Economic Geography)
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.:
- Chow, Gregory C, 1993.
"Capital Formation and Economic Growth in China,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 809-42, August.
- Wei, Shang-Jin & Wang, Tao, 1997. "The siamese twins: Do state-owned banks favor state-owned enterprises in China?," China Economic Review, Elsevier, vol. 8(1), pages 19-29.
- Tianlun Jian & Jeffrey D. Sachs & Andrew M. Warner, 1996. "Trends in Regional Inequality in China," NBER Working Papers 5412, National Bureau of Economic Research, Inc.
- Paul Cashin & Ratna Sahay, 1995.
"Internal Migration, Center-State Grants and Economic Growth in the States of India,"
IMF Working Papers
95/66, International Monetary Fund.
- Paul Cashin & Ratna Sahay, 1996. "Internal Migration, Center-State Grants, and Economic Growth in the States of India," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 123-171, March.
- Liu, Tung & Li, Kui-Wai, 2001. "Impact of liberalization of financial resources in China's economic growth: evidence from provinces," Journal of Asian Economics, Elsevier, vol. 12(2), pages 245-262.
- Jones, Derek C. & Li, Cheng & Owen, Ann L., 2003.
"Growth and regional inequality in China during the reform era,"
China Economic Review,
Elsevier, vol. 14(2), pages 186-200.
- Derek C. Jones & Cheng Li & Ann L. Owen*, 2003. "Growth and Regional Inequality in China During the Reform Era," William Davidson Institute Working Papers Series 2003-561, William Davidson Institute at the University of Michigan.
- Leamer, Edward E, 1985. "Sensitivity Analyses Would Help," American Economic Review, American Economic Association, vol. 75(3), pages 308-13, June.
- Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, vol. 40(6), pages 1353-1375, June.
- Raiser, Martin, 1997. "How are China's state-owned enterprises doing in the 1990s? Evidence from three interior provinces," China Economic Review, Elsevier, vol. 8(2), pages 191-216.
- Malcolm Knight & Norman Loayza & Delano Villanueva, 1993.
"Testing the Neoclassical Theory of Economic Growth: A Panel Data Approach,"
IMF Staff Papers,
Palgrave Macmillan, vol. 40(3), pages 512-541, September.
- Malcolm D. Knight & Delano Villanueva & Norman Loayza, 1992. "Testing the Neoclassical Theory of Economic Growth - A Panel Data Approach," IMF Working Papers 92/106, International Monetary Fund.
- Coulombe, S., 2000.
"New Evidence of Convergence Across Canadian Provinces: the Role of Urbanization,"
0002e, University of Ottawa, Department of Economics.
- Serge Coulombe, 2000. "New Evidence of Convergence Across Canadian Provinces: The Role of Urbanization," Regional Studies, Taylor & Francis Journals, vol. 34(8), pages 713-725.
- Levine, Ross & Renelt, David, 1991.
"A sensitivity analysis of cross-country growth regressions,"
Policy Research Working Paper Series
609, The World Bank.
- Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
- Johnson, Paul A., 2000.
"A nonparametric analysis of income convergence across the US states,"
Elsevier, vol. 69(2), pages 219-223, November.
- Johnson, Paul, 1999. "A Nonparametric Analysis of Income Convergence Across the US States," Vassar College Department of Economics Working Paper Series 46, Vassar College Department of Economics.
- Coulombe, S., 2000. "New Evidence of Convergence Across Canadian Provinces: the Role of Urbanization," Working Papers 0002e, University of Ottawa, Department of Economics.
- Sala-i-Martin, Xavier, 1997.
"I Just Ran Two Million Regressions,"
American Economic Review,
American Economic Association, vol. 87(2), pages 178-83, May.
- Alwyn Young, 2000. "Gold into Base Metals: Productivity Growth in the People's Republic of China during the Reform Period," NBER Working Papers 7856, National Bureau of Economic Research, Inc.
- Borensztein, Eduardo & Ostry, Jonathan D, 1996. "Accounting for China's Growth Performance," American Economic Review, American Economic Association, vol. 86(2), pages 224-28, May.
- Jian, Tianlun & Sachs, Jeffrey D. & Warner, Andrew M., 1996. "Trends in regional inequality in China," China Economic Review, Elsevier, vol. 7(1), pages 1-21.
- Cai, Fang & Wang, Dewen & Du, Yang, 2002. "Regional disparity and economic growth in China: The impact of labor market distortions," China Economic Review, Elsevier, vol. 13(2-3), pages 197-212.
- Chen, Baizhu & Phillips, Kerk L., 2008.
"Regional Growth in China: An Empirical Investigation using Multiple Imputation and Province-level Panel Data,"
23553, University Library of Munich, Germany.
- Phillips, Kerk L. & Chen, Baizhu, 2011. "Regional growth in China: An empirical investigation using multiple imputation and province-level panel data," Research in Economics, Elsevier, vol. 65(3), pages 243-253, September.
- Catin, Maurice & Luo, Xubei & Van Huffel, Christophe, 2005. "Openness, industrialization, and geographic concentration of activities in China," Policy Research Working Paper Series 3706, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.