IDEAS home Printed from https://ideas.repec.org/a/cuf/journl/y2005v6i2p303-317.html

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

    Download full text from publisher

    File URL: http://aeconf.com/Articles/Nov2005/aef060206.pdf
    Download Restriction: no
    File URL: http://down.aefweb.net/AefArticles/aef060206.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Tian, Guoqiang, 2000. "Property Rights and the Nature of Chinese Collective Enterprises," Journal of Comparative Economics, Elsevier, vol. 28(2), pages 247-268, June.
    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)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mei Wen, 2007. "Foreign direct investment, regional market conditions and regional development," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 15(1), pages 125-151, January.
    2. Yaisawarng, Suthathip & Ng, Ying Chu, 2014. "The impact of higher education reform on research performance of Chinese universities," China Economic Review, Elsevier, vol. 31(C), pages 94-105.
    3. Che, Jiahua, 2002. "Rent Seeking and Government Ownership of Firms: An Application to China's Township-Village Enterprises," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 787-811, December.
    4. Fariha Kamal, 2014. "Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 137-154, January.
    5. Wang, Chengqi & Kafouros, Mario & Yi, Jingtao & Hong, Junjie & Ganotakis, Panagiotis, 2020. "The role of government affiliation in explaining firm innovativeness and profitability in emerging countries: Evidence from China," Journal of World Business, Elsevier, vol. 55(3).
    6. Unite, Angelo A. & Sullivan, Michael J. & Brookman, Jeffrey & Majadillas, Mary Anne & Taningco, Angelo, 2008. "Executive pay and firm performance in the Philippines," Pacific-Basin Finance Journal, Elsevier, vol. 16(5), pages 606-623, November.
    7. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    8. Klishchuk Bogdan & Zelenyuk Valentin, 2012. "Impact of Services LIberalization on Firm Level Productivity in Eastern Europe and Central Asia," EERC Working Paper Series 12/03e, EERC Research Network, Russia and CIS.
    9. Le, Manh-Duc & Pieri, Fabio & Zaninotto, Enrico, 2019. "From central planning towards a market economy: The role of ownership and competition in Vietnamese firms’ productivity," Journal of Comparative Economics, Elsevier, vol. 47(3), pages 693-716.
    10. Bischoff, Ivo, 2002. "Efficiency-enhancing effects of private and collective enterprises in transitional China," Discussion Papers 9, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    11. Pei Sun & Kamel Mellahi & Guy Liu, 2011. "Corporate governance failure and contingent political resources in transition economies: A longitudinal case study," Asia Pacific Journal of Management, Springer, vol. 28(4), pages 853-879, December.
    12. Sean M. Dougherty & Robert H. McGuckin, 2001. "The Effect of Ownership Structure and Jurisdictional Governance on Productivity in Chinese Enterprises," Economics Program Working Papers 02-01, The Conference Board, Economics Program, revised Jan 2002.
    13. Shiu, Alice & Heshmati, Almas, 2006. "Technical Change and Total Factor Productivity Growth for Chinese Provinces: A Panel Data Analysis," IZA Discussion Papers 2133, IZA Network @ LISER.
    14. Zhou, Zhengyi, 2017. "Government ownership and exposure to political uncertainty: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 84(C), pages 152-165.
    15. Ma Zhong & Weiqi Zhao & Yasir Shahab, 2022. "The philanthropic response of substantive and symbolic corporate social responsibility strategies to COVID‐19 crisis: Evidence from China," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(2), pages 339-355, March.
    16. Feng-Cheng Fu & Chu-Ping Vijverberg & Yong-Sheng Chen, 2008. "Productivity and efficiency of state-owned enterprises in China," Journal of Productivity Analysis, Springer, vol. 29(3), pages 249-259, June.
    17. Wen, Mei, 2004. "Bankruptcy, sale, and mergers as a route to the reform of Chinese SOEs," China Economic Review, Elsevier, vol. 15(3), pages 249-267.
    18. Marcus Conlé, 2011. "Tracing the Process of Property Rights Specification in China: The Case of New Technology Enterprises," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 3, Edward Elgar Publishing.
    19. Bai, Chong-En & Liu, Qiao & Lu, Joe & Song, Frank M. & Zhang, Junxi, 2004. "Corporate governance and market valuation in China," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 599-616, December.
    20. Jiahua Che, 2002. "From the Grabbing Hand to the Helping Hand: A Rent Seeking Model of China's Township-Village Enterprises," WIDER Working Paper Series DP2002-13, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    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)

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cuf:journl:y:2005:v:6:i:2:p:303-317. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Qiang Gao (email available below). General contact details of provider: https://edirc.repec.org/data/emcufcn.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.