Research On The Factors Of Efficiency For State-owned Enterprise In China

State-owned enterprise is an important part of the Socialist market economic system in China, which plays an decisive role in promoting the economic development. Since the reform and opening up in 1978, reform of state-owned enterprises has been on and off but never stopped. Nowadays, new reform of state-owned enterprises is giving paid an increasing attention when the downward pressure of economy and the disappearance of the signs of economic recovery. As a significant part of structural reform of the supply-front, whether the reform of state-owned enterprises improves the efficiency of state-owned enterprises is becoming one of most noticeable problems among the enterprise and scholars. Therefore, this paper, written at the beginning of the new reform, mainly pays attention on the topic of efficiency of state-owned enterprises, which might contributes to providing constructive suggestions on reform of state-owned enterprises.In chapter 2, this paper reviewed literatures from two aspects. One was the classical theory about the business efficiency and the other was related to our concern including the direct efficiency and indirect efficiency of state-owned enterprises, the performance of the transformation from state-owned enterprises to non-state-owned enterprises. In chapter3, the paper reviewed the development of state-owned enterprise and divided all state-owned enterprises into three types on the basis of the meaning of the state-owned enterprises’ existence. In chapter 4, the paper estimated the total factor productivity of every enterprise using the data samples from the Industrial enterprise database from 1998 to 2007. And this paper made a random-effect regression with built panel data in chapter 5. Given the obvious regional differences of the china’s economy development, the paper also divided the samples into three parts belonging to three regions and respectively made empirical tests to prove the overall consistency and regional differences.The results showed that there existed industry differentiation caused by administrative monopoly. More specifically, the efficiency of enterprises has improved obviously after reform of the state-owned enterprise in most industries where the market competition is relatively fierce, while for the part of State administrative monopoly and local State administrative monopoly industries, the performance of reform seems insignificant if reform has been only implemented on the enterprise. In addition, there are regional differences of the administrative monopoly level. That’s to say, with the higher marketization level and weaker administrative monopoly in the east region, the performance of the reform of the state-owned enterprises appears better. On the contrary, the marketization reform is supposed to implement first in the middle and west region where administrative monopoly level is relatively higher.Based on the analysis, this paper proposes some suggestions as follows. Firstly, reasonably define the types of the state-owned enterprises and promote the state-owned enterprises reform orderly. Secondly, establish completely new evaluating system and adjust the thread of State-owned enterprises reform. Thirdly, speed up reinforcing the property reform of state-owned enterprises in the industry with higher market competition. Fourthly, give priority to marketization reform of removing administrative monopoly in the industry with lower market competition and higher level of administrative monopoly. Lastly, accelerate reinforcing the property reform of state-owned enterprises in the east region, while preferentially consider marketization reform in the middle and west region.