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

March 12, 2021

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Format: Chicago

Emilia M Jurzyk, and Cian Ruane. Resource Misallocation Among Listed Firms in China: The Evolving Role of State-Owned Enterprises, (USA: International Monetary Fund, 2021) accessed December 21, 2024

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.

Subject: Capital productivity, Economic sectors, Labor productivity, Production, Productivity, Public enterprises, Total factor productivity

Keywords: Capital productivity, Firm distortion, Firm Fe, Labor productivity, Misallocation, Private firm, Productivity, Productivity difference, Productivity gap, Public enterprises, Representative firm, State-Owned Enterprises, Technical efficiency, Total factor productivity, WP

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/075
Stock No:

WPIEA2021075
ISBN:

9781513571928
ISSN:

1018-5941

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