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Productivity Evolution of Chinese Large and Small Firms in the Era of Globalisation

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  • Yifan ZHANG

    (Lingan University, Hong Kong)

Abstract

Using a large firm-level dataset from the Chinese manufacturing industry, this paper studies the productivity gap and productivity convergence between large and small firms in China. We find that small firms are less productive relative to large firms, but the productivity gap became smaller over the sample period 1999–2007. Based on static and dynamic Blinder-Oaxaca decompositions, we distinguish the endowment effect from the return effect, and quantify the impacts of exports and FDI on the productivity gap and productivity convergence.

Suggested Citation

  • Yifan ZHANG, 2014. "Productivity Evolution of Chinese Large and Small Firms in the Era of Globalisation," Working Papers DP-2014-13, Economic Research Institute for ASEAN and East Asia (ERIA).
  • Handle: RePEc:era:wpaper:dp-2014-13
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    References listed on IDEAS

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    More about this item

    Keywords

    China; Small firms; Productivity; Globalisation;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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