Resource Misallocation Among Listed Firms in China: The Evolving Role of State-Owned Enterprises
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Summary:
We document that publicly listed Chinese state-owned enterprises (SOEs) are less productive and profitable than publicly listed firms in which the state has no ownership stake. In particular, Chinese listed SOEs are more capital intensive and have a lower average product of capital than non-SOEs. These productivity differences increased between 2002 and 2009, and remain sizeable in 2019. Using a heterogeneous firm model of resource misallocation, we find that there are large potential productivity gains from reforms which could equalize the marginal products of listed SOEs and listed non-SOEs.
Series:
Working Paper No. 2021/075
Subject:
Capital productivity Economic sectors Labor productivity Production Productivity Public enterprises Total factor productivity
Frequency:
regular
English
Publication Date:
March 12, 2021
ISBN/ISSN:
9781513571928/1018-5941
Stock No:
WPIEA2021075
Pages:
45
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