HOW ARE CHINA STATE-OWNED ENTERPRISES DOING IN THE 1990S - EVIDENCE FROM 3 INTERIOR PROVINCES

Since its inception in the early 1980s, the success of China's enterpr ise reforms remains hotly debated. This paper introduces a new element into the analysis of state-owned enterprise performance by drawing on the recent increase in inter-regional income disparities. It is argue d that as a result of less favourable structural conditions and strong er fiscal dependence on the central government, reform implementation in the interior provinces has lagged behind the progress made along th e coast. This hypothesis is investigated using enterprise survey data from three interior provinces which is compared to a similar survey ca rried out earlier in four coastal cities. The evidence generally suppo rts the view of larger administrative restrictions in the interior and relatively poor economic performance.