Resource Misallocation Among Listed Firms in China: The Evolving Role of State-Owned Enterprises

Author/Editor:

Emilia M Jurzyk ; Cian Ruane

Publication Date:

March 12, 2021

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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:

Frequency:

regular

English

Publication Date:

March 12, 2021

ISBN/ISSN:

9781513571928/1018-5941

Stock No:

WPIEA2021075

Format:

Paper

Pages:

45

Please address any questions about this title to publications@imf.org