Inefficient resource use by its enterprises may challenge the sustainability of China’s intense and prolonged growth. Relying on a properly representative database of mainland China’s economy, we investigate whether inefficiencies depend on ownership. Moreover, our stochastic frontier approach allows more flexibility to identify sources of inefficiency. We find that compared with similar private companies inefficiency is systematically larger (smaller) in state-owned enterprises (foreign-owned Chinese enterprises). Furthermore, when foreign ownership arrives in mainland China from the other territories of greater China (Hong Kong, Macau, Taiwan) it is slightly more inclined to result in lower inefficiency than when it originates in other foreign countries. JEL Classification: D24, L50, F43, O40, O53.
Technical efficiency and governance: The case of China
Mastromarco C.
2013-01-01
Abstract
Inefficient resource use by its enterprises may challenge the sustainability of China’s intense and prolonged growth. Relying on a properly representative database of mainland China’s economy, we investigate whether inefficiencies depend on ownership. Moreover, our stochastic frontier approach allows more flexibility to identify sources of inefficiency. We find that compared with similar private companies inefficiency is systematically larger (smaller) in state-owned enterprises (foreign-owned Chinese enterprises). Furthermore, when foreign ownership arrives in mainland China from the other territories of greater China (Hong Kong, Macau, Taiwan) it is slightly more inclined to result in lower inefficiency than when it originates in other foreign countries. JEL Classification: D24, L50, F43, O40, O53.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
