Institutional change and productivity growth in China's manufacturing: the microeconomics of knowledge accumulation and "creative restructuring"

Yu, Xiaodan; Dosi, Giovanni; Lei, Jiasu; Nuvolari, Alessandro

doi:10.1093/icc/dtv011

Cited by 49 publications

(54 citation statements)

References 33 publications

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“…This relatively new stylized fact is remarkably robust across countries, years, sectors, and also growth rate indicators (among a large literature, see e.g. Bottazzi et al, 2002;Fagiolo and Luzzi, 2006;Bottazzi et al, 2010;Duschl and Peng, 2015;and Yu et al, 2015). The intuition behind this "tent-shaped" distribution of growth rates is that, while most firms do not grow, a handful of firms experience either very fast decline or very fast growth.…”

mentioning

confidence: 89%

Growth processes of high-growth firms as a four-dimensional chicken and egg

Coad¹,

Cowling²,

Siepel³

2016

Industrial and Corporate Change

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This article investigates whether high-growth firms grow in different ways from other firms. Specifically, we analyze how firms grow along several dimensions (growth of sales, employment, assets, and operating profits) using Structural Vector Autoregressions. Causal relations are identified by using information contained in the (non-Gaussian) growth rate distributions. For most firms, the growth process starts with employment growth, which is then followed by sales growth, then growth of operating profits, and finally growth of assets. In contrast, high growth firms put more emphasis on growth of operating profits driving other dimensions of growth, with employment growth occurring at the end.

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confidence: 89%

Growth processes of high-growth firms as a four-dimensional chicken and egg

Coad¹,

Cowling²,

Siepel³

2016

Industrial and Corporate Change

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“…Duschl and Peng (2015) report lower average growth for state-owned enterprises but a much higher probability to become high growth firms while foreign owned enterprises are also more likely to show high growth rates. Yu et al (2015) of the variance of growth rates and the logarithm of the size) differs from Western economies (the parameter being smaller) according to Duschl and Peng (2015) while Yu et al (2015) report a very stable productivity growth distribution on the aggregated level compared to other emerging economies.…”

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confidence: 92%

“…Both Duschl and Peng (2015) and Yu et al (2015) recently found that the characteristics of Chinese firms vary greatly with the ownership structure. Duschl and Peng (2015) report lower average growth for state-owned enterprises but a much higher probability to become high growth firms while foreign owned enterprises are also more likely to show high growth rates.…”

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confidence: 99%

Diversity of firm sizes, complexity, and industry structure in the Chinese economy

Heinrich

Dai

2016

Structural Change and Economic Dynamics

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Among the phenomena in economics that are not yet well-understood is the fat-tailed (power-law) distribution of firm sizes in the world's economies. Different mechanisms suggested in the literature to explain this distribution of firm sizes are discussed in the present paper. The paper uses the China Industrial Enterprises Database to study the distribution (firm size in terms of the number of employees, capital, and gross profit) for the provinces of China for the years 1998-2008. We estimate the power-law distribution and confirm its plausibility using the KS test and the log-likelihood ratio vs. lognormal and exponential distributions. The analysis on regional levels allows an assessment of regional effects on differences in the distribution; we discuss possible explanations for the observed patterns in the light of the recent regional economic development in the PRC.

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“…This growth is dominated by the rate of technological progress: 5.5 per cent. However, Yu et al (2015) argued that China's catch-up process is characterised by 'creative restructuring' (or efficiency improvement) rather than 'creative destruction' (or innovation). Curtis (2016) argued that relocation of resources could account for 21.5 points of TFP growth during 1992-97.…”

Section: Innovation and Catch-upmentioning

confidence: 99%