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The determinants of productivity in Chinese large and medium-sized industrial firms, 1998-2007

Ding, S.; Guariglia, A.; Harris, R.

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Authors

S. Ding

A. Guariglia



Abstract

Using a large firm-level dataset, this paper examines total factor productivity (TFP) and its determinants in China. Our preferred GMM estimation results indicate increasing returns to scale in most industries and a usually large positive trend representing technical change. Various firm characteristics such as age, ownership, political affiliation, export behavior, liquidity, and geographic location are included in the production function. Our results show that in the context of China’s institutional background, including such factors is important when estimating TFP. The average TFP growth in Chinese industries is 9.6 % per annum during the period 1998–2007, and is mainly driven by firm entry. The sub-sector decomposition exercises show that the inter-firm resource reallocations are more prominent across industries than across provinces.

Citation

Ding, S., Guariglia, A., & Harris, R. (2016). The determinants of productivity in Chinese large and medium-sized industrial firms, 1998-2007. Journal of Productivity Analysis, 45(2), 131-155. https://doi.org/10.1007/s11123-015-0460-0

Journal Article Type Article
Acceptance Date Oct 17, 2014
Online Publication Date Oct 24, 2015
Publication Date Apr 1, 2016
Deposit Date Oct 26, 2015
Publicly Available Date Mar 29, 2024
Journal Journal of Productivity Analysis
Print ISSN 0895-562X
Electronic ISSN 1573-0441
Publisher Springer
Peer Reviewed Peer Reviewed
Volume 45
Issue 2
Pages 131-155
DOI https://doi.org/10.1007/s11123-015-0460-0
Keywords TFP, Productivity decomposition, Entry, Exit, Reallocation of resources, China.
Public URL https://durham-repository.worktribe.com/output/1428030

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Copyright Statement
Advance online version © The Author(s) 2015 Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.





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