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State‐owned Enterprises, Exporting and Productivity in C hina: A Stochastic Dominance Approach
Author(s) -
Elliott Robert,
Zhou Ying
Publication year - 2013
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12078
Subject(s) - competitor analysis , dominance (genetics) , stochastic dominance , productivity , economics , state owned , china , monetary economics , market economy , international trade , international economics , macroeconomics , econometrics , biochemistry , chemistry , management , political science , law , gene
A popular explanation for C hina's rapid economic growth in recent years has been the dramatic increase in the number of private domestic‐ and foreign‐owned firms and a decline in the state‐owned sector. However, recent evidence suggests that C hina's state‐owned enterprises ( SOE s) are in fact stronger than ever. In this paper, we examine over 78,000 manufacturing firms between 2002 and 2006 to investigate the relationship between ownership structure and the degree of firm‐level exposure to export markets and firm‐level productivity. Using a conditional stochastic dominance approach, we reveal that although our results largely adhere to prior expectations, the performance of SOE s differs markedly between those that export and those that supply the domestic market only. It appears that C hina's internationally focused SOE s have become formidable global competitors.