Liu, Jing and Cao, Shutao (2011): Productivity Growth and Ownership Change in China: 1998-2007.
Download (439kB) | Preview
This paper studies the industry productivity dynamics in China’s manufacturing sector from 1998 to 2007, and in particular, explores to what extent the privatization of state-owned enter- prises (SOEs) contributes to the aggregate productivity growth. Our results show that, though non-SOEs on average are more productive than SOEs, the average productivity growth among SOEs is greater than their counterparts. Industry concentration, taxation, and credit market all account for this difference in growth between SOEs and non-SOEs. We find that industry productivity growth is mainly attributed to the growth of non-SOEs, entry of non-SOE firms, and the exit of SOEs. However, non-SOE firms that are transformed directly from SOEs make a small and negative contribution to industry productivity growth.
|Item Type:||MPRA Paper|
|Original Title:||Productivity Growth and Ownership Change in China: 1998-2007|
|Keywords:||Productivity Growth, Industry Dynamics, Ownership Change, Reallocation|
|Subjects:||E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
D - Microeconomics > D2 - Production and Organizations > D24 - Production ; Cost ; Capital ; Capital, Total Factor, and Multifactor Productivity ; Capacity
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
|Depositing User:||Jing Liu|
|Date Deposited:||03. May 2011 14:07|
|Last Modified:||04. Apr 2015 19:42|
Ackerberg, D., Caves, K., and Frazer, G., “Structural Identification of Production Functions, ” mimeo, UCLA.
Amiti, Mary and Jozef Konings, “Trade Liberalization, Intermediate Inputs, and Productivity, American Economic Review, December vol. 97(05), pp.1611-1638.
Baily M.N, C. Hulten and D. Campbell, “Productivity Dynamics in Manufacturing Plants, ” Brookings Papers on Economic Activity: Mircroeconomics, pp. 187-249.
Brandt, Loren, Johannes Van Biesebroeck, and Yifan Zhang, “Creative Accounting or Cre- ative Destruction? Firm-level Productivity Growth in Chinese Manufacturing,” NBER Working Papers 15152, National Bureau of Economic Research, Inc. July 2009.
Brandt, Loren and Xiaodong Zhu, “Accounting for China’s Growth,” IZA Discussion Papers 4764, Institute for the Study of Labor (IZA), 2010.
Cooper, Russell, Guan Gong, and Ping Yan, “Dynamic Labor Demand in China: Public and Private Objectives,” NBER Working Papers 16498, National Bureau of Economic Research, Inc.
Deng, Haiyan, Robert H. McGuckin, John C. Haltiwanger, Xu Jianyi, Liu Yaodong, and Liu Yuqi, “The Contribution of Restructuring and Reallocation to China’s Productivity and Growth,” Economics Program Working Papers 07-04, The Conference Board, Economics Program December 2007.
Doraszelski, Ulrich and Jaumandreu, Jordi, “R&D and Productivity: Estimating Production Functions when Productivity is Endogenous,” CEPR Discussion Papers 6636, C.E.P.R. Discus- sion Papers.
Duarte, Margarida and Diego Restuccia, “The Role of the Structural Transformation in Aggregate Productivity,” Working Papers tecipa-348, University of Toronto, Department of Eco- nomics 2009.
Fifty Years, “50 years of statistics for China’s industry, transport and energy,” Beijing: Zhongguo Tongji Chubanshe. Lucia Foster, John Haltiwanger and C.J. Krizan, “The Link Between Aggregate and Mi- cro Productivity Growth: Evidence from Retail Trade,” NBER Working Papers 9120, National Bureau of Economic Research, Inc.
Hsieh, Chang-Tai and Peter J. Klenow, “Misallocation and Manufacturing TFP in China and India,” Quarterly Journal of Economics vol. 124(4),1403-1448, November.
Levinsohn, James and Petrin, Amil, “Estimating production functions using inputs to control for unobservables, ” The Review of Economic Studies, 70(243): pp. 317342, April 2003.
Jefferson, Gary H., Inderjit Singh, Xing, Junling and Zhang, Shouqing, “China’s Indus- trial Performance: A Review of Recent Findings, ” in Enterprise Reform in China: Ownership, Transition and Performance. Oxford: Oxford University Press, pp. 127-152.
Klepper, Steven and Graddy, Elizabeth, “The Evolution of New Industries and Determinants of Market Structure, ” Rand Journal of Economics, 21(1), pp. 27-44, 1990.
Lardy, Nicolas, “Issues in China’s WTO Accession, ” Hearing before the U.S.-China Security Review Commission. May 9, 2001.
Lau, Lawrence J., Qian, Yingyi and Roland, Gerald, “Reform without losers: An Interpre- tation of China’s Dual-Track Approach to Transition,” Journal of Political Economy. 108(1), pp. 120-143.
Li, Wei, “The Impact of Economic Reform on the Performance of Chinese State-Owned Enter- prises, 1980-1989,” Journal of Political Economy. 105(5), pp. 1080-1106, 1997.
Lin, Justin Yifu, Cai, Fang and Li, Zhou, “Competition, Policy Burdens, and State-Owned Enterprise Reform,” American Economic Review, American Economic Association, vol. 88(2), pages 422-27, May 1998.
OECD: Organization for Economic Cooperation and Development, “OECD Economic Surveys: China,” Paris: OECD. Olley, G. Steven and Pakes, Ariel, “The dynamics of productivity in the telecommunications equipment industry,” Econometrica, 64(6): 1263-1297, November 1996.
Perkins Dwight H., et al., “Rural Small-Scale Industry in the People’s Republic of China,” Berkley: University of California Press.
Petrin, Amil, T. Kirk White, and Jerome P. Reiter, “The Impact of Plant-level Resource Reallocations and Technical Progress on U.S. Macroeconomic Growth,” manuscript, University of Minnesota 2009.
Qi, Gang, “The Monetization Process in China During the Economic Reform, ” China Economic Review, 1991. Song, Zheng Michael, Kjetil Storesletten, and Fabrizio Zilibotti, “Growing like China,” CEPR Discussion Papers 7149, C.E.P.R. Discussion Papers 2009.
Sutton, John, “Technology and Market Structure: Theory and History, ” Cambridge, MA: MIT Press.
Wong, C. and Shue, V. , “Paying for Progress in China: Public Finance, Human Welfare and Changing Patterns of Inequality, ” Routledge Contemporary China Series.
World Trade Organization, “Developing Countries’ Good Trade Share Surges to 50-years Peak, ” Press Release 401, April 14, 2005.
Yearbook, Annual, “China Statistics Yearbook, ” Beijing: Zhongguo Tongji Chubanshe.