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Enterprise reform and technical efficiency of China's state-owned enterprises

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  • Yiping Huang
  • K. P. Kalirajan

Abstract

This study investigates whether the enterprise reforms were helpful for the technical efficiency of China's state-owned enterprises. A stochastic varying coefficients frontier approach is applied on enterprise survey data in 1992. The results suggest that exposure to market competition (or less state intervention) is positively correlated with firms' level of technical efficiency. There is no evidence, however, of positive contribution by adoption of the new enterprise institutions to technical efficiency.

Suggested Citation

  • Yiping Huang & K. P. Kalirajan, 1998. "Enterprise reform and technical efficiency of China's state-owned enterprises," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 585-592.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:5:p:585-592
    DOI: 10.1080/000368498325570
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    Cited by:

    1. Smyth, Russell, 2000. "Should China be Promoting Large-Scale Enterprises and Enterprise Groups?," World Development, Elsevier, vol. 28(4), pages 721-737, April.
    2. Kui-Wai Li & Tung Liu & Lihong Yun, 2007. "Technology Progress, Efficiency, and Scale of Economy in Post-reform China," Working Papers 200701, Ball State University, Department of Economics, revised Apr 2007.
    3. Subhash C. Ray & Zhang Ping, 2001. "Technical Efficiency of State Owned Enterprises in China (1980-1989): An Assessment of the Economic Reforms," Working papers 2001-05, University of Connecticut, Department of Economics.
    4. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    5. Xunpeng Shi & R. Grafton, 2010. "Efficiency impacts of the Chinese industrial transition: a quantitative evaluation of reforms in the coal industry," Economic Change and Restructuring, Springer, vol. 43(1), pages 1-19, February.

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