Xy. Dong et L. Putterman, PRODUCTIVITY AND ORGANIZATION IN CHINA RURAL INDUSTRIES - A STOCHASTIC FRONTIER ANALYSIS, Journal of comparative economics, 24(2), 1997, pp. 181-201
We use a stochastic production frontier approach to examine the techni
cal efficiency of Chinese township and village enterprises (TVEs) and
variations in that efficiency. Our data cover enterprises in 10 provin
ces in the years 1984 to 1989. We find that the average technical effi
ciency level of the sampled TVEs resembles that of industrial enterpri
ses in other developing countries and that enterprises owned by townsh
ip and village governments are more efficient than enterprises under p
rivate ownership. Our analysis controls for, and provides interesting
results regarding, productivity differentials by province and the effe
cts of access to loans and wage premia. (C) 1997 Academic Press.