IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v19y2008i4p325-333.html
   My bibliography  Save this article

IT, enterprise reform, and productivity in Chinese manufacturing firms

Author

Listed:
  • Motohashi, Kazuyuki

Abstract

This paper is a first attempt at examining the impact that Information Technology (IT) and enterprise reform have on the productivity of Chinese manufacturing firms by using large-scale firm level datasets from 1995 to 2002. It is found that enterprise reforms captured by the entry and exit of firms have had a positive impact on aggregated productivity growth. In addition, IT plays a relatively important role in the productivity performance of post-reform enterprises, as opposed to enterprises which are not affected by major restructuring in the course of Chinese state-owned enterprise reforms.

Suggested Citation

  • Motohashi, Kazuyuki, 2008. "IT, enterprise reform, and productivity in Chinese manufacturing firms," Journal of Asian Economics, Elsevier, vol. 19(4), pages 325-333, August.
    • Handle: RePEc:eee:asieco:v:19:y:2008:i:4:p:325-333
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049-0078(08)00043-2
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Zvi Griliches & Jacques Mairesse, 1995. "Production Functions: The Search for Identification," NBER Working Papers 5067, National Bureau of Economic Research, Inc.
    2. Meng, Qingxuan & Li, Mingzhi, 2002. "New Economy and ICT development in China," Information Economics and Policy, Elsevier, vol. 14(2), pages 275-295, June.
    3. Jefferson, Gary H. & Rawski, Thomas G. & Li, Wang & Yuxin, Zheng, 2000. "Ownership, Productivity Change, and Financial Performance in Chinese Industry," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 786-813, December.
    4. Motohashi, Kazuyuki, 2007. "Firm-level analysis of information network use and productivity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(1), pages 121-137, March.
    5. Watanabe, Mariko, 2002. "Holding company risk in China: a final step of state-owned enterprises reform and an emerging problem of corporate governance," China Economic Review, Elsevier, vol. 13(4), pages 373-381, December.
    6. Gary Jefferson & Bai Huamao & Guan Xiaojing & Yu Xiaoyun, 2006. "R&D Performance in Chinese industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 345-366.
    7. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    8. Gary H. Jefferson & Thomas G. Rawski, 1994. "Enterprise Reform in Chinese Industry," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 47-70, Spring.
    9. Tian Zhu, 1999. "China'S Corporatization Drive: An Evaluation And Policy Implications," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 530-539, October.
    10. Jorgenson, Dale W. & Motohashi, Kazuyuki, 2005. "Information technology and the Japanese economy," Journal of the Japanese and International Economies, Elsevier, vol. 19(4), pages 460-481, December.
    11. Jefferson, Gary & Hu, Albert G. Z. & Guan, Xiaojing & Yu, Xiaoyun, 2003. "Ownership, performance, and innovation in China's large- and medium-size industrial enterprise sector," China Economic Review, Elsevier, vol. 14(1), pages 89-113.
    12. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2003. "A study of the R&D efficiency and productivity of Chinese firms," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 444-464, September.
    13. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    14. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
    15. Albert G. Z. Hu & Gary H. Jefferson & Qian Jinchang, 2005. "R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 780-786, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Younes Teymouri & Saeid Isazadeh, 2016. "The Effect of Firm's Use from Information Technology (IT) on Total Productivity," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(3), pages 379-402, Summer.
    2. Paunov, Caroline & Rollo, Valentina, 2016. "Has the Internet Fostered Inclusive Innovation in the Developing World?," World Development, Elsevier, vol. 78(C), pages 587-609.
    3. Ranajoy Bhattacharyya & Ripudaman Bhardwaj, 2022. "The Effect of Coronavirus Pandemic on the Rupee Dollar Exchange Rate," Working Papers 2264, Indian Institute of Foreign Trade.
    4. MOTOHASHI Kazuyuki & YUAN Yuan, 2009. "IT, R&D and Productivity of Chinese Manufacturing Firms," Discussion papers 09007, Research Institute of Economy, Trade and Industry (RIETI).
    5. Grace Kite, 2012. "The Impact of Information Technology Outsourcing on Productivity and Output: New Evidence from India," Working Papers 173, Department of Economics, SOAS University of London, UK.
    6. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    7. Nigel Driffield & Jun Du, 2007. "Privatisation, State Ownership and Productivity: Evidence from China," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(2), pages 215-239.
    8. Tomohiro MACHIKITA & Masatsugu TSUJI & Yasushi UEKI, 2010. "How ICTs Raise Manufacturing Performance: Firm-level Evidence in Southeast Asia," Working Papers DP-2010-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    9. Mitali Gupta & Manik Kumar, 2018. "Impact of ICT Usage on Productivity of Unorganised Manufacturing Enterprises in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 411-425, June.
    10. Huang, Minjie & Zhao, Shunan & Kumbhakar, Subal C., 2022. "Decomposition of Output, Productivity and Market Structure Changes," European Journal of Operational Research, Elsevier, vol. 303(1), pages 422-437.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. MOTOHASHI Kazuyuki & YUAN Yuan, 2009. "IT, R&D and Productivity of Chinese Manufacturing Firms," Discussion papers 09007, Research Institute of Economy, Trade and Industry (RIETI).
    2. Fariha Kamal, 2014. "Does Firm Ownership Affect Spillover Opportunities? Evidence From Chinese Manufacturing," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 137-154, January.
    3. Boeing, Philipp & Mueller, Elisabeth & Sandner, Philipp, 2016. "China's R&D explosion—Analyzing productivity effects across ownership types and over time," Research Policy, Elsevier, vol. 45(1), pages 159-176.
    4. Heinrich, Torsten & Yang, Jangho & Dai, Shuanping, 2020. "Growth, development, and structural change at the firm-level: The example of the PR China," MPRA Paper 105011, University Library of Munich, Germany.
    5. Claro, Sebastian, 2006. "Supporting inefficient firms with capital subsidies: China and Germany in the 1990s," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 377-401, June.
    6. Lin, Chen & Lin, Ping & Song, Frank M. & Li, Chuntao, 2011. "Managerial incentives, CEO characteristics and corporate innovation in China's private sector," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 176-190, June.
    7. Sun, Qunyan & Zhang, Anming & Li, Jie, 2005. "A study of optimal state shares in mixed oligopoly: Implications for SOE reform and foreign competition," China Economic Review, Elsevier, vol. 16(1), pages 1-27.
    8. Motohashi, Kazuyuki, 2007. "Firm-level analysis of information network use and productivity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(1), pages 121-137, March.
    9. Kazuyuki Motohashi, 2010. "R&D Activities of Manufacturing Multinationals in China: Structure, Motivations and Regional Differences," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(6), pages 56-72, November.
    10. Dobson, Wendy & Safarian, A.E., 2008. "The transition from imitation to innovation: An enquiry into China's evolving institutions and firm capabilities," Journal of Asian Economics, Elsevier, vol. 19(4), pages 301-311, August.
    11. Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
    12. Huang C. & Wu Y. & Mohnen P. & Zhao Y., 2013. "Government support, innovation and productivity in the Haidian (Beijing) District," MERIT Working Papers 2013-058, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Peilei Fan, 2011. "Innovation capacity and economic development: China and India," Economic Change and Restructuring, Springer, vol. 44(1), pages 49-73, April.
    14. Yanrui Wu, 2012. "R&D Behaviour in Chinese Firms," Economics Discussion / Working Papers 12-26, The University of Western Australia, Department of Economics.
    15. Chih‐Hai Yang & Chun‐Hung Lin & Daw Ma, 2010. "R&D, Human Capital Investment and Productivity: Firm‐level Evidence from China's Electronics Industry," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(5), pages 72-89, September.
    16. Yang, Xuehui & Zhang, Huirong & Li, Yan, 2022. "High-speed railway, factor flow and enterprise innovation efficiency: An empirical analysis on micro data," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    17. Girma, Sourafel & Gong, Yundan, 2008. "Putting people first? Chinese state-owned enterprises' adjustment to globalisation," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 573-585, March.
    18. Xunpeng Shi, 2010. "Restructuring in China's State‐owned Enterprises: Evidence from the Coal Industry," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(3), pages 90-105, May.
    19. Sourafel Girma & Yundan Gong & Holger Görg, 2016. "Foreign Direct Investment, Access to Finance, and Innovation Activity in Chinese Enterprises," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 5, pages 79-94, World Scientific Publishing Co. Pte. Ltd..
    20. Måns Söderbom & Francis Teal, 2003. "Openness and human capital as sources of productivity growth: An empirical investigation," CSAE Working Paper Series 2003-06, Centre for the Study of African Economies, University of Oxford.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:19:y:2008:i:4:p:325-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.