Efficiency of Chinese enterprises

This paper compares die efficiencies across firm ownership types in China. Empirical results show that the non-state-owned enterprises are more efficient than the state-owned enterprises, which provides evidence to support the continued shifting of industry structure from state-owned enterprises to non-state-owned enterprises. Also, the economic gap between the western and coastal regions are found to be related to the variations of performances of ownership types in these regions. In addition, the issue of crossing frontiers and two interesting features of the Byrnes (1985) technique on the separation of across-group and within-group technical efficiency measures are evaluated.