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Cheng, Yuk-Shing and Lo, Dic (2004) Firm Size, Technical Efficiency and Productivity Growth in Chinese Industry. London: SOAS Department of Economics Working Paper Series; No. 144.

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Since the mid-1990s, China’s state leadership has adopted a policy of nurturing the competitiveness of large state-owned industrial enterprises. The implications of this policy have been a matter of debate in the literature. This paper seeks to provide some useful input into the debate. With a view of investigating into the potential of long-term development of large enterprises, we estimate the “sequential production technology” in computing the Malmquist productivity index for various size-groups of enterprises in Chinese industry. Our findings indicate that large enterprises did register the fastest productivity growth and improvement in technical efficiency in the 1994-97 period. It thus appears that large-scale, mainly state-owned Chinese enterprises have exhibited the potential of making noticeable improvements and the relevant state policy does have its justification.

Item Type: Monographs and Working Papers (Working Paper)
Keywords: firm size, technical efficiency, productivity, China, industry
SOAS Departments & Centres: Legacy Departments > Faculty of Law and Social Sciences > Department of Economics
ISSN: 17535816
Date Deposited: 16 Mar 2006

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