The Production Efficiency Of State-owned Enterprises, Research, And Its Competitive Advantage

In the economic transitional China, stated-owned enterprises (SOEs) have been reformed greatly, and therefore productivity and competitiveness of SOEs have become an increasingly interest issue. By using data from Liaoning Enterprises Survey during 1999-2001, the paper finds that reformed SOEs have made great progress in the productivity and competitiveness. The results are of three aspects. Firstly, employment mechanism of SOEs has becoming more flexible and labor allocation more rational. With increases of labor utilizing efficiency and labor marginal value, SOEs have been provided with some employment rights and redundancy has been relaxed in some extent. Next, productivity with reformed SOEs has been improved greatly. By estimating factors'elasticity and total factor productivity (TFP), it provides that TFP of reformed SOEs has made most rapid growth and that contribution of TFP to output increase is getting more important. Finally, reformed SOEs have made great progress in technology efficiency. Stochastic production frontier function estimate shows that enterprise size, R&D level and employment self-decision have remarkable impact on technology efficiency. Another, perspicuity of state-owned property right also affects technology efficiency. In conclusion, from 1999 to 2001, with mechanism reforming deeply and market economy transition fastening, reformed SOEs have improved productivity and competitiveness greatly, though there is still a large gap between reformed SOEs and non-state-owned enterprises. Only when SOEs become subject of market economy in deed, will SOEs have viability and competitiveness in market competition.