A Comparative Analysis of the Efficiency of Foreign-Invested and State-owned Enterprises in China
نویسنده
چکیده
This paper presents a comparative analysis of the productive efficiency of two types of firms in China --foreign-invested enterprises (FIEs) and state-owned enterprises (SOEs), using a stochastic frontier production function model and the latest statistical data (1993-97). It has found that the FIEs in general outperformed SOEs in productive efficiency, as demonstrated by the differentials in technical efficiency, technological progress and total factor productivity (TFP). The factors contributing to the efficiency differentials have been explored using both the technical inefficiency model (one-step model) and two-step model.
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