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The Effects of Federalism on Productivity in Chinese Firms

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  • Sean M. Dougherty
  • Robert H. McGuckin

Abstract

This study offers empirical evidence about how the structure of government and private ownership affected productivity in Chinese firms. It uses the microdata of China's last decennial industrial census, covering all of the 23,000 large and medium-sized industrial firms operating in China during 1995. The results show that government decentralization – ‘federalism’ – played an important role in improving the performance of not just collective firms, but also state-owned and mixed public/private ownership firms. This result is strongly confirmatory of much of the recent theoretical work on transition economies that posits a key role for government in the efficient operation of markets.
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Suggested Citation

  • Sean M. Dougherty & Robert H. McGuckin, 2008. "The Effects of Federalism on Productivity in Chinese Firms," Management and Organization Review, The International Association for Chinese Management Research, vol. 4(1), pages 39-61, March.
    • Handle: RePEc:bla:mgorev:v:4:y:2008:i:1:p:39-61
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    File URL: http://hdl.handle.net/10.1111/j.1740-8784.2007.00091.x
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    Cited by:

    1. Zhang, Yanlong, 2014. "From State to Market: Private Participation in China’s Urban Infrastructure Sectors, 1992–2008," World Development, Elsevier, vol. 64(C), pages 473-486.
    2. He Wei Ping, 2013. "Regulatory capture in China's banking sector," Journal of Banking Regulation, Palgrave Macmillan, vol. 14(1), pages 80-90, January.
    3. Wenjing Li & Ran Zhang, 2010. "Corporate Social Responsibility, Ownership Structure, and Political Interference: Evidence from China," Journal of Business Ethics, Springer, vol. 96(4), pages 631-645, November.
    4. Fan Xia & Gordon Walker, 2015. "How much does owner type matter for firm performance? Manufacturing firms in China 1998–2007," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 576-585, April.
    5. Jin, Haizhen, 2023. "Effects of decentralization on firm performance: Evidence from Chinese county-level quasi-experiments," Economic Modelling, Elsevier, vol. 119(C).
    6. Alfred Wong & Lu Wei & Dean Tjosvold, 2014. "Business and regulators partnerships: Government transformational leadership for constructive conflict management," Asia Pacific Journal of Management, Springer, vol. 31(2), pages 497-522, June.

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