TY  - JOUR
AU  - Aizenman,Joshua
AU  - Geng,Nan
TI  - Adjustment of State Owned and Foreign-Funded Enterprises in China to Economic Reforms,1980s-2007: a logistic smooth transition regression (LSTR) approach
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 15274
PY  - 2009
Y2  - August 2009
UR  - http://www.nber.org/papers/w15274
L1  - http://www.nber.org/papers/w15274.pdf
N1  - Author contact info:
Joshua Aizenman
Economics and SIR
USC
University Park
Los Angeles, CA 90089-0043
Tel: 213-740-4066
E-Mail: aizenman@usc.edu

Nan Geng
Economics E2, UCSC
1156 High St., Santa Cruz, CA, 95064
E-Mail: ngeng@ucsc.edu
AB  - This paper applies a logistic smooth transition regression approach to the estimation of a homogenous aggregate value added production function of the State Owned (SOE) and Foreign-Funded Enterprises (FFE) in China, 1980s-2007. The transition associated with the economic reforms in China is estimated applying a curvilinear logistic function, where the speed and the timing of the transition are endogenously determined by the data. We find high but gradually declining markups in both SOEs and FFEs during the early stages of the adjustment, with SOEs having a much larger scale and market size than the FFEs. However, over the transition process, returns to scale in industrial SOEs dropped sharply. For both FFEs and SOEs the transition is slow, with a midpoint about 7 and 14 years, respectively. We find significant increase of TFP growth rate for both FFEs and SOEs, by 0.1436 and 0.1971, respectively.
ER  -