Market liberalization and firm performance during China's economic transition

By Seung-Ho Park, Shaomin Li, D. Tse. 2006

332 citations recorded by the source corpus.

This paper examines the impact of market liberalization on firm performance through institutional changes during the economic reform in China. The conceptualization focuses on the decentralization of control, ownership restructuring, and industrial policy as the primary institutional changes to implement market liberalization in China. These institutional changes affect firm performance by shaping managerial incentives, affecting transaction and agency costs, and making selective resource allocations across and within industries. Using a large-scale data set including 23,577 firms between 1992 and 1996, the study examines how market liberalization affects the profitability and productivity of Chinese firms and the relationship between ownership change and the performance of state-owned enterprises.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/4f1986093313b8e9c1f656b0571c63a38b361ea5

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Mike W. Peng
2. Dean Xu
3. J. Lu
4. Jing Li
5. Qian Gu
6. Xufei Ma
7. Jun Xia
8. Daphne W. Yiu

In Economics and Econometrics

1. Alan M. Rugman
2. Jun Xia
3. Dean Xu
4. Sea-Jin Chang
5. Xufei Ma
6. Daphne W. Yiu
7. Shaomin Li
8. Jing Li

In Strategy and Management

1. Dean Xu
2. K. Meyer
3. Jing Li
4. Mike W. Peng
5. J. Lu
6. Qian Gu
7. Xufei Ma
8. Jun Xia

Citations in the corpus

• Spillovers and competition among foreign and local firms in China (2008, methodology): “We measured the degree of decentralized control for local firms with Decentralized Control, which ranges from 1 (central government) and 2 (province) to 10 (privately owned) (Park et al., 2006).”
• Will China’s Multinationals Succeed Globally or Regionally? (2007, background): “However, as shown in Table 4, the Chinese firms in the world’s largest 500 are mainly state owned and often lack strong incentives to develop their FSAs due to government protection and control (Park et al., 2006; Buckley et al., 2002).”
• The Roles and Performance of State Firms and Non-State Firms in China’s Economic Transition (2008, methodology): “In the existing literature of China’s reforms, SOEs have been viewed as a liability of the reform and thus would be wiped out soon, as marketization deepens (Li et al., 2000; Park et al., 2006 ).”
• LINKING THEORY AND CONTEXT: "STRATEGY RESEARCH IN EMERGING ECONOMIES" AFTER WRIGHT ET AL. (2005) (2012, unknown): “Generally speaking, SOEs lag behind other types of firms in responding to reforms (Park et al., 2006), while private firms tend to react swiftly to institutional changes (Chittoor et al.”
• Outward foreign direct investment by emerging market firms: A resource dependence logic (2014, background): “They had little autonomy to invest abroad because their operations were constrained by the government’s resource allocation and distribution systems (Huang, 2003; Park, Li, and Tse, 2006).”
• Institutional Barriers and Industry Dynamics (2014, unknown): “Several recent studies use the annual industrial firms database (Brandt, Van Biesebroeck, and Zhang, 2011; Chang and Xu, 2008; Hsieh and Klenow, 2009; Park, Li, and Tse, 2006; Zhang et al ., 2010).”