Privatisation, state ownership and productivity: evidence from China

Nigel Driffield*, Jun Du

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the relationship between the transfer of ownership between the public and private sectors of Chinese industry, and its impacts on performance. We link ownership changes to productivity growth, and demonstrate that privatisation contributes significantly. We offer an extension that is generally ignored in the literature, in looking at firms that are taken back into state ownership, and evaluating the productivity growth effects of this. Further, we highlight the well-understood simultaneity problems, and demonstrate the hazard of ignoring the issue by comparing various estimators, including the modified control function approach. In general, the results stress the importance of allowing for such endogeneity when evaluating the productivity effects of ownership change.

Original languageEnglish
Pages (from-to)215-239
Number of pages25
JournalInternational Journal of the Economics of Business
Volume14
Issue number2
DOIs
Publication statusPublished - Jul 2007

Bibliographical note

This is an Author's Accepted Manuscript of an article published in Driffield, N., & Du, J. (2007). Privatisation, state ownership and productivity: evidence from China. International journal of the economics of business, 14(2), 215-239. International journal of the economics of business © 2007 International Journal of the Economics of Business, Taylor & Francis, available online at: http://www.tandfonline.com/10.1080/13571510701344004

Keywords

  • China
  • ownership Change
  • productivity

Fingerprint Dive into the research topics of 'Privatisation, state ownership and productivity: evidence from China'. Together they form a unique fingerprint.

Cite this