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Ownership and Sector Performance in Current China -- A Regional Study

Author

Listed:
  • Chunrong Ai

    (University of Florida)

  • Mei Wen

    (University of Sydney, Australian National University)

Abstract

This paper uses the latest provincial data to study the productivity implications of ownership diversi¡¥cation in China's industry. It investigates the different performance of di?erent ownership sectors. It is found that there are significant differences in both production technology and the determinants of economic performance at provincial level between sectors of SOEs, collectives, domestic private enterprises, Hong Kong, Macau and Taiwan funded firms and foreign invested firms. While Cobb-Douglas production functions fit the production technologies of the state controlled, collective and overseas Chinese funded sector very well, the production technologies of the domestic private and foreign funded sector are better represented by Translog production function. The average total factor productivity across di?erent sectors is ranked from the foreign funded sector, domestic private sector, collective sector, Hong Kong, Macau and Taiwan funded sector, to the state controlled sector in descending order. In addition, the determinants of economic performance change substantially from one ownership sector to another.

Suggested Citation

  • Chunrong Ai & Mei Wen, 2005. "Ownership and Sector Performance in Current China -- A Regional Study," Annals of Economics and Finance, Society for AEF, vol. 6(2), pages 303-317, November.
    • Handle: RePEc:cuf:journl:y:2005:v:6:i:2:p:303-317
    as

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    References listed on IDEAS

    as
    1. Tian, Guoqiang, 2000. "Property Rights and the Nature of Chinese Collective Enterprises," Journal of Comparative Economics, Elsevier, vol. 28(2), pages 247-268, June.
    2. Wen, Mei & Li, Dong & Lloyd, Peter, 2002. "Ownership and Technical Efficiency: A Cross-Section Study on the Third Industrial Census of China," Economic Development and Cultural Change, University of Chicago Press, vol. 50(3), pages 709-734, April.
    3. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ownership diversification; Regional marketization level; Productivity and firms' performance;
    All these keywords.

    JEL classification:

    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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