Shiu, Alice and Zelenyuk, Valentin (2009): Production Efficiency versus Ownership: The Case of China.
Download (419Kb) | Preview
In this study, we explore the pattern of efficiency among enterprises in China’s 29 provinces across different ownership types in heavy and light industries and across different regions (coastal, central and western). We do so by performing a bootstrap-based analysis of group efficiencies (weighted and non-weighted), estimating and comparing densities of efficiency distributions, and conducting a bootstrapped truncated regression analysis. We find evidence of interesting differences in efficiency levels among various ownership groups, especially for foreign and local ownership, which have different patterns for light and heavy industries.
|Item Type:||MPRA Paper|
|Original Title:||Production Efficiency versus Ownership: The Case of China|
|Keywords:||Efficiency; Data envelopment analysis; Bootstrapping; Ownership; China|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General
C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C15 - Statistical Simulation Methods: General
D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic Development
|Depositing User:||Valentin Zelenyuk|
|Date Deposited:||10. Jul 2010 01:19|
|Last Modified:||12. Feb 2013 12:09|
American Chamber of Commerce (ACC). 1998. Business Outlook Survey.
Banks, Robert B. 1994. Growth and Diffusion Phenomena. Springer Verlag, Berlin.
Dong, F., Tang, Z. 1995. Studies of Institutional Reforms of Chinese State-Owned Enterprises. The People’s Publisher, Beijing.
Färe, R., Grosskopf, S., Norris, M. and Zhang, Z. 1994. Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries. American Economic Review 84:1, 66-83.
Färe, R., Primont, D. 1995. Multi-Output Production and Duality: Theory and Applications. Kluwer Academic Publishers, Boston.
Färe, R., Zelenyuk, V. 2003. On Aggregate Farrell Efficiencies. European Journal of Operations Research 146:3, 615-621.
Farrell, M.J. 1957. The Measurement of Productive Efficiency. Journal of the Royal Statistical Society 120, 253-281.
Gerschenkron, A. 1962. Economic Backwardness in Historical Perspective. Cambridge, Belknap Press of Harvard University Press.
Grossman, G.M. and Helpman, E. 1991. Trade, Knowledge Spillovers and Growth. European Economic Review 35, 517-26.
Groves, T., Hong, Y., McMillan, J. and Naughton, B. 1994. Autonomy and Incentives in Chinese State Enterprises. Quarterly Journal of Economics 109, 183-209.
Helpman, E. and Rangel, A. 1999. Adjusting to a New Technology: Experience and Training. Journal of Economic Growth 4, 359-383.
Henderson, D.J. and Russell, R.R. 2005. Human Capital and Convergence: A Production-Frontier Approach. International Economic Review 46, 1167-1205.
Henderson, D.J. and Zelenyuk, V. 2006. Testing for (Efficiency) Catching-up. Southern Economic Journal 73:4, 1003–1019.
Huang, H, Cai, F. and Duncan, R. 1999. Reform of State-Owned Enterprises in China: Key Measures and Policy Debate. ANU, Canberra: Asia-Pacific Press.
Korostelev, A., Simar, L. and Tsybakov, A. 1995. Efficient Estimation of Monotone Boundaries. The Annals of Statistics 23:2, 476-489.
Kneip, A., Park, B. and Simar, L. 1998. A Note on the Convergence of Nonparametric DEA Estimators for Production Efficiency Scores. Econometric Theory 14, 783-793.
Kneip A, Simar L, and Wilson P.W. (2008) "Asymptotics and consistent bootstraps for DEA estimators in non-parametric frontier models." Econometric Theory 24:1663–1697.
Kumar, S. and Russell, R.R. 2002. Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence. American Economic Review 92:3, 527– 548.
Li, Q. 1996. Nonparametric Testing of Closeness between Two Unknown Distributions. Econometric Reviews 15, 261-274.
Lin, J.Y., Cai, F. and Li, Z. 1998. Competition, Policy Burdens, and State-Owned Enterprise Reform. American Economic Review 88:2, 422-427.
Melvin, S. 1998. Business Group Sizes up Shanghai’s Investment Climate. China Business Review 25:1, 4-4.
Nelson, R.R. and Phelps, E.S. 1966. Investment in Humans, Technological Diffusion, and Economic Growth. American Economic Review 56, 69-75.
Parente, S.L. and Prescott, E.C. 1994. Barriers to Technology Adoption and Development. Journal of Political Economy 102, 298-321.
Park, B.U., Jeong, S.-O. and Simar, L. 2010. Asymptotic Distribution of Conical-hull Estimators of Directional Edges. Annals of Statistics 38: 3, 1320-1340.
Park, B. U, Simar, L. and Zelenyuk, V. (2008), Local Likelihood Estimation of Truncated Regression and its Partial Derivatives: Theory and Application. Journal of Econometrics 146, 185-198.
Russell, R.R. 1990. Continuity of Measures of Technical Efficiency. Journal of Economic Theory 52, 255-267.
Russell, R.R. 1997. Distance Functions in Consumer and Producer Theory in Index Number Theory: Essays in Honor of Sten Malmquist. Kluwer Academic Publishers, 7-90.
Sheather S.J. and Jones M.C. (1991), A reliable data based bandwidth selection method for Kernel density estimation. Journal of the Royal Statistical Society 3, 683-690.
Shiu, A. 2000. Productivity in the Chinese Economy and International Comparisons. Ph.D. Dissertation, University of New South Wales, Sydney.
Shiu, A. 2001. Efficiency of Chinese Enterprises. Journal of Productivity Analysis 18, 255-267.
Simar, L. and Wilson, P.W. 2007. Estimation and Inference in Two-Stage, Semi-Parametric Models of Production Processes. Journal of Econometrics 136, 31-64.
Simar, L. and Zelenyuk, V. 2007. Statistical Inference For Aggregates Of Farrell-Type Efficiencies. Journal of Applied Econometrics 22:7, 1367-1394.
Simar, L. and Zelenyuk, V. 2006. On Testing Equality of Two Distribution Functions of Efficiency Scores Estimated via DEA. Econometric Reviews 25:4, 497-522.
State Statistical Bureau, 1995. The Data of the Third National Industrial Census of the People’s Republic of China 1995. Beijing: State Statistical Bureau.
Transparency International. 2001. Global Corruption Report (http://www.globalcorruption-report.org/).
Wei, Z., Varela, O. and Hassan, M.K. 2002. Ownership and Performance in Chinese Manufacturing Industry. Journal of Multinational Financial Management 12, 61-78.
Weitzman, M.L. and Xu, C. 1994. Chinese Township-Village Enterprises as Vaguely Defined Cooperatives. Journal of Comparative Economics 18, 121-145.
Weldon, E. and Vanhonacker, W. 1999. Operating a Foreign-Invested Enterprise in China: Challenges for Managers and Management Researchers. Journal of World Business 34, 94-107.
Wu, Y. 1996. Productive Performance in Chinese Enterprises – An Empirical Study. Macmillan Press, London.
Wu, Y. 1998. Redundancy and Firm Characteristics in Chinese State-Owned Enterprises. The Asia Pacific Journal of Economics and Business 2, 33-44.
Yeung, G. and Mok, V. 2002. Government Policy and the Competitive Advantages of Foreign-Financed Firms in Guangdong Province of Southern China. Asian Business and Management 1, 227-247.
Zelenyuk, V. 2009. Power of Significance Test of Dummies in Simar-Wilson Two-Stage Efficiency Analysis Model. Applied Economics Letters 16:15, 1493-1497.
Zelenyuk, V. and Zheka, V. 2006. Corporate Governance and Firm’s Efficiency: The Case of a Transitional Country, Ukraine. Journal of Productivity Analysis 25, 143-168.
Zheng, J. and Hu, A. 2004. An Empirical Analysis of Provincial Productivity in China (1979-2001). Paper presented at the 15th Annual Conference of the Chinese Economic Association (UK).
Zheng, J., Liu, X. and Bigsten, A. 1998. Ownership Structure and Determinants of Technical Efficiency: An Application of Data Envelopment Analysis to Chinese Enterprises (1986-1990). Journal of Comparative Economics 26, 465-484.
Zhang, X.G. and Zhang, S. 2001. Technical Efficiency in China’s Iron and Steel Industry: Evidence from the New Census Data. International Review of Applied Economics 15, 199-211.