We would like to thank Matthew Cole, Lisa Jabbour, Eric Strobl and an anonymous referee for useful comments and the financial support from the Leverhulme Trust, grant number F/00094/BH.
Article first published online: 17 JUN 2013
© 2013 John Wiley & Sons Ltd
The World Economy
Volume 36, Issue 8, pages 1000–1028, August 2013
How to Cite
Elliott, R. and Zhou, Y. (2013), State-owned Enterprises, Exporting and Productivity in China: A Stochastic Dominance Approach. World Economy, 36: 1000–1028. doi: 10.1111/twec.12078
- Issue published online: 12 AUG 2013
- Article first published online: 17 JUN 2013
- Leverhulme Trust. Grant Number: F/00094/BH
A popular explanation for China'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 China's state-owned enterprises (SOEs) 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 SOEs differs markedly between those that export and those that supply the domestic market only. It appears that China's internationally focused SOEs have become formidable global competitors.