What Drives the Volatility of Firm Level Productivity in China?
The enterprise reforms of the 1990s profoundly changed the structure of the economy in China. Using a fi rm-level dataset collected annually during the period of 1998–2007, this paper examines the variation of productivity volatility across fi rms of different characteristics as well as its evolu...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Warsaw
2015-11-01
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| Series: | Journal of Banking and Financial Economics |
| Subjects: | |
| Online Access: | https://press.wz.uw.edu.pl/cgi/viewcontent.cgi?article=1080&context=jbfe |
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| Summary: | The enterprise reforms of the 1990s profoundly changed the structure of the economy in China.
Using a fi rm-level dataset collected annually during the period of 1998–2007, this paper examines
the variation of productivity volatility across fi rms of different characteristics as well as its
evolution over time, and investigates the sources of productivity volatility at the fi rm level. The
results suggest that in general, productivity volatility at the fi rm level declined over time in China.
Large fi rms, old fi rms, foreign fi rms, and fi rms located in the coastal provinces are less volatile.
Firm size and location are the two major factors that drive changes in productivity volatility – one
in a positive way and one in a negative way. While the gaps of volatility between smaller fi rms
and larger fi rms declined, the gaps between fi rms located in the coastal provinces and inland
provinces increased. |
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| ISSN: | 2353-6845 |