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.
|Number of pages||25|
|Journal||International Journal of the Economics of Business|
|Publication status||Published - Jul 2007|
Bibliographical noteThis 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
- ownership Change