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Ownership, productivity and firm survival in China

Author

Listed:
  • David Audretsch

    (Indiana University)

  • Xiaodan Guo

    (Dongbei University of Finance and Economics)

  • Adrian Hepfer

    (Indiana University)

  • Hugo Menendez

    (Indiana University)

  • Xingzhi Xiao

    (Dongbei University of Finance and Economics)

Abstract

By tracking more than 3000 manufacturing firms established in 1999 in China over a span of 10 years, we examined whether the status of firm survival differs in China from the so-called stylized fact that has been established in studies for other countries. We also analyzed the unique effects of ownership and productivity on firm survival in a transitional economy. The empirical evidence suggests that although the state-owned firms are still under the protection from the Chinese government, productivity influences firm survival, the effects of government protection and market selection shift over time and in various growth rate sectors, and productivity exerts a different influence on exit This paper again confirms again that some evidence independent of various institutions and policies establishes the “natural law” of industrial dynamics, and “good” economy transition can make room for market selection.

Suggested Citation

  • David Audretsch & Xiaodan Guo & Adrian Hepfer & Hugo Menendez & Xingzhi Xiao, 2016. "Ownership, productivity and firm survival in China," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 67-83, March.
    • Handle: RePEc:spr:epolin:v:43:y:2016:i:1:d:10.1007_s40812-015-0021-6
    DOI: 10.1007/s40812-015-0021-6
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    References listed on IDEAS

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    Cited by:

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    2. Jiao, Jian-ling & Zhang, Xiao-lan & Tang, Yun-shu, 2020. "What factors determine the survival of green innovative enterprises in China? -- A method based on fsQCA," Technology in Society, Elsevier, vol. 62(C).
    3. Tran, Hien Thu, 2019. "Institutional quality and market selection in the transition to market economy," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    4. Chiara Criscuolo & Angelo Secchi, 2016. "Resources (mis)allocation, innovation and the competitiveness of Europe," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 43(1), pages 1-9, March.
    5. Sana Ullah & Muhammad Tariq Majeed & Muhammad Hafeez, 2019. "Education, experience, social network and firm survival: the case of the electrical fittings cluster in Sargodha, Pakistan," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 46(3), pages 267-278, September.
    6. Cheng, Ruiqi & Yuan, Peng & Jiang, Gongxiong, 2023. "Growth, agglomeration externalities, and survival: Evidence from Chinese manufacturing start-ups," Journal of Business Research, Elsevier, vol. 154(C).
    7. Giorgia Giovannetti & Margherita Velucchi, 2022. "Gender discrimination and firm survival: a multilevel approach for EU textile companies," SN Business & Economics, Springer, vol. 2(9), pages 1-19, September.

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    More about this item

    Keywords

    Firm survival; Ownership; Productivity;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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