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Chinese firm dynamics and the role of ownership type A conditional estimation approach of the Asymmetric Exponential Power (AEP) density

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  • Matthias Duschl

    (Philipps University Marburg)

  • Shi-Shu Peng

    (Academia Sinica)

Abstract

This paper investigates the impact of ownership type on the entire growth rate distributional mass of Chinese firms, using a conditional estimation approach of the Asymmetric Exponential Power (AEP) density that goes beyond simple location-shift analysis. We first find a Chinese growth puzzle, i.e., a deviation from the stylized fact of the variance-scaling relationship commonly found in Western European economies. We then find, through five hypotheses, that the ownership type mainly affects the tails of the growth rate distributions. Our results also indicate that barriers of becoming a high growth firm, such as financial constraints, are especially prevalent in the Chinese private sector.

Suggested Citation

  • Matthias Duschl & Shi-Shu Peng, 2013. "Chinese firm dynamics and the role of ownership type A conditional estimation approach of the Asymmetric Exponential Power (AEP) density," Papers on Economics and Evolution 2014-01, Philipps University Marburg, Department of Geography.
    • Handle: RePEc:esi:evopap:2014-01
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    More about this item

    Keywords

    firm growth; growth rate distributions; AEP conditional estimation; variance-scaling relationship; China; ownership type;
    All these keywords.

    JEL classification:

    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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