THE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL Enterprise Restructuring and Firm Performance: A Comparison of Rural and Urban Enterprises in Jiangsu Province

نویسندگان

  • Xiao-yuan Dong
  • Louis Putterman
  • Bulent Unel
  • William Davidson
چکیده

We examine the contrast in the experience of ownership reforms between urban SOEs and rural TVEs using a panel of industrial enterprises in Nanjing municipality for the period from 1994 to 2001. Our objectives are twofold. First, we study how the reform program of “grasp the large and let go of the small” has been carried out in practice by comparing the patterns of enterprise restructuring in the SOEs and the TVEs. Second, we investigate how the alternative reform strategy has affected firm performance in terms of the growth of labor productivity, total factor productivity (TFP), profitability, and worker earnings. We find a sharp contrast in the reform strategies of the SOEs and TVEs in two respects. First, the changes in the SOE sector were more gradual and involved more limited transfer of property rights than did the reform of the TVEs. Secondly, the reforms in both sectors exhibited selection bias but in opposite directions, with worse performing ones being the principal targets of reforms, among SOEs, and better performing enterprises being more likely to be picked for privatization, among TVEs. Our analysis discerns strikingly strong, robust positive effects of ownership restructuring on the growth of labor productivity, TFP and profitability in the reformed SOEs, indicating that the evolutionary reform policy for the SOEs has successfully reversed the trends of declining productivity and profits in these enterprises in Nanjing. We also find that among reformed urban enterprises, those in which private ownership accounts for less than 50% of shares performed better than those in which the majority of shares are owned privately. We find mixed evidence for the TVEs: privatization had no effect on firm performance in a group fixed-effects model but significant, positive effects in a firm fixed-effects model.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Recognizing the Reasons for Success of Growth Enterprises at Agriculture Sector of Semnan Province, Iran

Small and medium enterprises play a significant role in economic and industrial development in the developed and developing countries. The main purpose of the study was to investigate the key factors in the effective of growth enterprises. The statistical population of this study according to assessment of Agri-Bank of the Semnan Province includes the managers of enterprises in agricultural sec...

متن کامل

THE WILLIAM DAVIDSON INSTITUTE AT THE UNIVERSITY OF MICHIGAN BUSINESS SCHOOL Resolution, Recovery and Survival: The Evolution of Payment Disputes in Post-Socialist Europe

What determines the mechanism chosen to resolve a commercial dispute? To what degree does the aggrieved recover damages? And does the relationship survive in the aftermath? The answers to these questions affect expectations as to the costs of transacting and, thereby, the development of markets. But they have received almost no attention in the economic literature on the post-socialist transiti...

متن کامل

Enterprise Resource Planning and Business Intelligence: The Importance of Integration

The advancement of information and communications technologies (ICT) has significantly intensified market competition the world over. One of the most widespread solutions is the use of enterprise resource planning systems that has proved to support the integration and automation of the processes, the improvement of the performance, and the reduction of costs. ERP involves the planning and manag...

متن کامل

Determinants of Entrepreneurial Orientation of Rural Women Small Business Owners: The Case of Gambella Region of Ethiopia

Small business and entrepreneurship play critical role in stimulating economic activity, creating jobs, alleviating poverty and uplift living standards in Africa. It is widely accepted that the Micro and Small Enterprise (MSE) sectors have the potential to provide a livelihood for a considerably large number of poor rural and urban women in Ethiopia. Women account for the larger share of the in...

متن کامل

An Integral Method of Evaluating the Innovative Capacity of Enterprises

Innovative capacity as a potential ability of an enterprise to innovative development is manifested in the process of formation and realization of an innovative product, which can be embodied in various forms. In the article innovation capacity is considered as a complex concept that covers the innovative output of the enterprise and the reserve for providing innovative capacity, which can make...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2004