Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11007925 | International Review of Economics & Finance | 2018 | 11 Pages |
Abstract
The rapid economic development in China has been characterized by levels of productivity very heterogeneous across local areas. This work investigates a previously unexplored aspect of such heterogeneity by assessing the degree of within-industry allocative efficiency across provinces over the period 1998-2007. Using firm-level data on the Chinese manufacturing firms, we measure resource misallocation by computing the within-industry covariance between size and productivity at the provincial level. The results suggest that allocative efficiency varies considerably across areas and that some place-based factors strongly influence the distribution of resources across firms.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Peng Bin, Xiaolan Chen, Andrea Fracasso, Chiara Tomasi,