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State-Owned Enterprises, Exporting and Productivity in China: A Stochastic Dominance Approach

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  • Robert Elliott
  • Ying Zhou
Abstract
A popular explanation for China's rapid economic growth in recent years has been the dramatic increase in the number of private domestic and foreign-owned firms and a decline in the state-owned sector. However, recent evidence suggest that China's state-owned enterprise (SOEs) are in fact stronger than ever. In this paper we examine over 78,000 manufacturing firms between 2002 and 2006 to investigate the relationship between ownership structure and the degree of firm-level exposure to export markets and firm-level productivity. Using a conditional stochastic dominance approach we reveal that although our results largely adhere to prior expectations, the performance of state-owned enterprises differs markedly between those that export and those that supply the domestic market only. It appears that China's internationally focused SOEs have become formidable global competitors.

Suggested Citation

  • Robert Elliott & Ying Zhou, 2013. "State-Owned Enterprises, Exporting and Productivity in China: A Stochastic Dominance Approach," Discussion Papers 13-03, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:13-03
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    Cited by:

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    2. Lin, Eric S. & Lin, Chia-Ling & Lin, Hui-Lin & Hsiao, Yi-Chi, 2023. "Is downsizing a good strategy during the downturn? Evidence from Taiwanese manufacturing firms," Japan and the World Economy, Elsevier, vol. 65(C).
    3. Karplus, Valerie J. & Geissmann, Thomas & Zhang, Da, 2021. "Institutional complexity, management practices, and firm productivity," World Development, Elsevier, vol. 142(C).
    4. Shao, Yanmin & Shang, Yan, 2016. "Decisions of OFDI Engagement and Location for Heterogeneous Multinational firms: Evidence from Chinese firms," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 178-187.
    5. Li, Bin & Pan, Ailing & Xu, Lei & Liu, Xin & Qin, Shuqian, 2020. "Imprinting and peer effects in acquiring state ownership: Evidence from private firms in China," Pacific-Basin Finance Journal, Elsevier, vol. 61(C).
    6. WAKASUGI Ryuhei & ZHANG Hongyong, 2015. "Impacts of the World Trade Organization on Chinese Exports," Discussion papers 15021, Research Institute of Economy, Trade and Industry (RIETI).
    7. Maman Setiawan & Erni Tisnawati Sule, 2018. "Technical Efficiency and Its Determinants of the State-owned Enterprises in the Indonesian Manufacturing Industry," Working Papers in Economics and Development Studies (WoPEDS) 201802, Department of Economics, Padjadjaran University, revised Aug 2018.
    8. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Kim, Chul Ju & Mortha, Aline, 2019. "A Comprehensive Evaluation Framework on the Economic Performance of State-Owned Enterprises," ADBI Working Papers 949, Asian Development Bank Institute.
    9. Ryuhei Wakasugi & Hongyong Zhang, 2016. "Impacts of the WTO accession on Chinese exports," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 14(4), pages 347-364, October.

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    More about this item

    Keywords

    Productivity; China; firm-level; State-owned enterprise; heterogeneity; stochastic dominance;
    All these keywords.

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions
    • D2 - Microeconomics - - Production and Organizations

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