The Impact of Economic Reform on the Performance of Chinese State Enterprises: 1980-1989

29 Pages Posted: 27 Feb 1998

See all articles by Wei Li

Wei Li

University of Virginia - Darden School of Business; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: January 1997

Abstract

The effectiveness of China's incremental industrial reform between 1980 and 1989 is investigated using a panel data set of 272 state enterprises. This paper applies a method that measures marginal products of factors and changes in total factor productivity (TFP) by comparing actual changes in output to actual changes in inputs and in the institutional environment. This paper finds that there were marked improvements in the marginal productivity of factors and in TFP between 1980 and 1989. More important, the evidence shows that over 87 percent of the TFP growth was attributable to improved incentives, intensified product market competition, and improved factor allocation.

JEL Classification: P21, L32, D24

Suggested Citation

Li, Wei, The Impact of Economic Reform on the Performance of Chinese State Enterprises: 1980-1989 (January 1997). Available at SSRN: https://ssrn.com/abstract=43302 or http://dx.doi.org/10.2139/ssrn.43302

Wei Li (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
804-243-7691 (Phone)
804-243-7681 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/li.htm

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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