Date of Award

Spring 5-2-2025

Document Type

Restricted Thesis

Degree Name

Bachelor of Arts (BA)

Department

Economics

First Advisor

Monica Das

Abstract

This thesis examines the impacts on ownership on labor productivity in China, focusing on state-owned enterprises (SOEs) and private firms across the mining, manufacturing, and utilities sectors. Using industry level panel data from 2005 to 2023 and a random effects model, the analysis finds that SOEs are 27.8 percent less productive than private firms, with the largest gap observed in manufacturing. Control variables such as average wages, foreign direct investment, and primary education enrollment positively influence productivity, highlighting the importance of incentives and human capital. These findings align with monopolistic competition theory, suggesting that competitive pressures and ownership type drive private firm efficiency. Policy recommendations include targeted SOE reforms, reducing barriers for private firms, and investing in education. While the study provides new evidence on ownership and productivity, it also acknowledges limitations such as industry-level data aggregation and suggests directions for future research.

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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