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Restructuring in China's State‐owned Enterprises: Evidence from the Coal Industry
Author(s) -
Shi Xunpeng
Publication year - 2010
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2010.01198.x
Subject(s) - restructuring , corporatization , china , state owned , business , coal , debt restructuring , state ownership , debt , stochastic frontier analysis , frontier , panel data , market economy , economics , industrial organization , production (economics) , finance , sovereign debt , macroeconomics , emerging markets , engineering , sovereignty , political science , econometrics , politics , law , waste management
Using firm‐level data for China's state‐owned coal mines, this paper examines the impact of privatization, corporatization and debt restructuring of state‐owned enterprises on technical efficiency. A stochastic frontier production method is applied to a panel dataset from 2000 to 2007. The simultaneous study of these three measures makes it possible to study individual effects more precisely than otherwise. The study shows that the three reform initiatives are all able to improve technical efficiency in state‐owned coal mines. The finding of a significant efficiency improvement from relinquishing state ownership provides an alternative to privatization. The study of debt restructuring and technical efficiency has not been documented in the published literature.