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Performance of domestic and foreign-invested enterprises in China

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  • Xu, Dean
  • Pan, Yigang
  • Wu, Changqi
  • Yim, Bennett

Abstract

Despite increasing attention paid to China's enterprise reform since the late 1970s, relatively little is known about the performance of reformed state-owned enterprises (SOEs) and newly formed private firms vis-à-vis foreign firms in China. In this study, we examine the performance of domestic Chinese firms in various ownership categories versus foreign-invested enterprises (FIEs) based on two nation-wide surveys conducted by the National Bureau of Statistics in 1998 and 2002. We found that both domestic non-state-owned firms and foreign-invested enterprises performed better than state-owned enterprises. Meanwhile, three categories of Chinese firms--privately owned, collectively owned, and shareholding--had higher performance levels than the foreign-invested enterprises.

Suggested Citation

  • Xu, Dean & Pan, Yigang & Wu, Changqi & Yim, Bennett, 2006. "Performance of domestic and foreign-invested enterprises in China," Journal of World Business, Elsevier, vol. 41(3), pages 261-274, September.
    • Handle: RePEc:eee:worbus:v:41:y:2006:i:3:p:261-274
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