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

Journal of Political Economy, No 5, Vol 105, Oct 1997

Posted: 13 Jan 1995

See all articles by Wei Li

Wei Li

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

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Abstract

The effectiveness of China's incremental industrial reform between 1980--89 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--89. More importantly, 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: P27, P21, L22, D24, C51

Suggested Citation

Li, Wei, The Impact of Economic Reform on the Performance of Chinese State Enterprises: 1980--1989. Journal of Political Economy, No 5, Vol 105, Oct 1997. Available at SSRN: https://ssrn.com/abstract=5751

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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