Impacts of Restructurings on Manufacturing Productive Efficiency: Evidence from China
This paper studies the effects of privatization and non-ownership-change reforms on firms’ productivity in China. As one of the most prominent empirical challenges in China privatization studies, endogeneity problems are addressed with a first-difference instrumental variable GMM estimation. We find that privatization does not improve firms’ productivity immediately. Instead, its effects become significantly positive in the year after conversion. In addition, partial privatization fails to lead to improved efficiency whereas insider privatization boosts firms’ productivity shortly after the first year of privatization but the effects quickly fade after two years of privatization. Lastly, all non-ownership-change reforms, except leasing, are proved to be ineffective even when issues like social burdens, worker redundancy, management incentives and soft-budget constraint are tackled before the restructuring.
|Date of creation:||Jun 2010|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. David Brown & John Earle & Almos Telegdy, 2005.
"The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine,"
CERT Discussion Papers
0508, Centre for Economic Reform and Transformation, Heriot Watt University.
- J. David Brown & John S. Earle & Almos Telegdy, 2006. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 61-99, February.
- J. David Brown & John S. Earle & Almos Telegdy, 2005. "The Productivity Effects of Privatization: Longitudinal Estimates from Hungary, Romania, Russia, and Ukraine," Upjohn Working Papers and Journal Articles 05-121, W.E. Upjohn Institute for Employment Research.
- Kevin Amess & Jun Du & Sourafel Girma, . "Full and Partial Privatization in China: The Labor Consequences," Discussion Papers 09/11, University of Nottingham, GEP.
- Qi, Daqing & Wu, Woody & Zhang, Hua, 2000. "Shareholding structure and corporate performance of partially privatized firms: Evidence from listed Chinese companies," Pacific-Basin Finance Journal, Elsevier, vol. 8(5), pages 587-610, October.
- Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002.
"Instrumental variables and GMM: Estimation and testing,"
North American Stata Users' Group Meetings 2003
05, Stata Users Group.
- Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
- Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," Boston College Working Papers in Economics 545, Boston College Department of Economics, revised 14 Feb 2003.
- Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2002. "Instrumental variables and GMM: Estimation and testing," United Kingdom Stata Users' Group Meetings 2003 02, Stata Users Group.
- Djankov, Simeon & Murrell, Peter, 2002.
"Enterprise Restructuring in Transition: A Quantitative Survey,"
CEPR Discussion Papers
3319, C.E.P.R. Discussion Papers.
- Simeon Djankov & Peter Murrell, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
- Blanchard, O. & Aghion, P., 1996. "On insider privatization," European Economic Review, Elsevier, vol. 40(3-5), pages 759-766, April.
- Mattlin, Mikael, 2007. "The Chinese government's new approach to ownership and financial control of strategic state-owned enterprises," BOFIT Discussion Papers 10/2007, Bank of Finland, Institute for Economies in Transition.
- Boycko, Maxim & Shleifer, Andrei & Vishny, Robert W, 1996. "A Theory of Privatisation," Economic Journal, Royal Economic Society, vol. 106(435), pages 309-19, March.
- Jeffry M. Netter & William L. Megginson, 2001. "From State to Market: A Survey of Empirical Studies on Privatization," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 321-389, June.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Imai, Ken'ichi, 2006. "Explaining the Persistence of State-ownership in China," IDE Discussion Papers 64, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Hongbin Li & Scott Rozelle, 2003. "Privatizing Rural China: Insider Privatization, Innovative Contracts, and the Performance of Township Enterprises1," Discussion Papers 00001, Chinese University of Hong Kong, Department of Economics.
- Zhang, Weiying, 1997. "Decision rights, residual claim and performance: A theory of how the Chinese state enterprise reform works," China Economic Review, Elsevier, vol. 8(1), pages 67-82.
- Dong, Xiao-yuan & Bowles, Paul & Ho, Samuel P. S., 2002. "Share Ownership and Employee Attitudes: Some Evidence from China's Postprivatization Rural Industry," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 812-835, December.
- Kerim Peren Arin & Cagla Okten, 2003. "The determinants of privatization prices: evidence from Turkey," Applied Economics, Taylor & Francis Journals, vol. 35(12), pages 1393-1404.
- Andrei Shleifer & Robert W. Vishny, 1994. "Politicians and Firms," The Quarterly Journal of Economics, Oxford University Press, vol. 109(4), pages 995-1025.
- Dong, Xiao-Yuan & Putterman, Louis, 2003. "Soft budget constraints, social burdens, and labor redundancy in China's state industry," Journal of Comparative Economics, Elsevier, vol. 31(1), pages 110-133, March.
- Shahid Yusuf & Kaoru Nabeshima & Dwight H. Perkins, 2005. "Under New Ownership : Privatizing China's State-Owned Enterprises," World Bank Publications, The World Bank, number 7399, November.
- John Vickers & George Yarrow, 1988. "Privatization: An Economic Analysis," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262720116, March.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:24766. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.