The Spillover Effects of Privatization on Efficiency and Income Inequality in China

• 영문명: The Spillover Effects of Privatization on Efficiency and Income Inequality in China
• 발행기관: The International Academy of Global Business and Trade
• 저자명: Xinyu Li Sunghwan Kim Yongshang Liu
• 간행물 정보: 『Journal of Global Business and Trade』Vol. 19, No. 1, 173~191쪽, 전체 19쪽
• 주제분류: 사회과학 > 무역학
• 파일형태: PDF
• 발행일자: 2023.02.28

영문 초록

Purpose - This study examines the spatial and inter-temporal spillover effects of privatization on the corporate efficiency and regional income inequality of Chinese state-owned enterprises (SOEs). Design/Methodology/Approach - The spatial Durbin model (SDM) is used in regressions to examine the spatial and inter-temporal spillover effects of the privatization of SOEs on improving the efficiency and income inequality of Chinese firms across regions. A panel dataset of Chinese-listed firms from 2008 to 2018 is used. The stochastic frontier analysis method is applied in estimating corporate efficiency. Findings - First, the privatization of Chinese SOEs increased their efficiency, but exacerbated their income inequality. Second, the globalization activities after the privatization of Chinese SOEs increased their efficiency, but exacerbated their income inequality. Specifically, exports decrease income inequality, while outward foreign direct investment or OFDI has an inverse U-shaped effect on income inequality. Third, the privatization improved overall corporate efficiency within the province and that of neighboring provinces. Fourth, the Chinese SOE firms after privatization aggravated income equality within the province and that of neighboring provinces. Research Implications - In general, the results of this study indicate that the privatization of SOEs and the globalization activities after the privatization have improved the efficiency of Chinese firms, but worsened income equality within the province and that of neighboring provinces. Therefore, there is a strong need for governmental policies to cure income equality in provinces around the location of privarized firms.

목차

Ⅰ. Introduction

Ⅱ. Literature Review

Ⅲ. Hypotheses and Test Models

Ⅳ. Data and Regression Analyses

Ⅴ. Conclusion

References

키워드

China Efficiency Income Inequality Inter-temporal Spatial Regression Privatization