TY - JOUR
T1 - Externality from China's Non-State Sector's Growth to State-Sector's Growth
T2 - An Empirical Assessment
AU - Wang, Xiaolu
AU - Kalirajan, Kaliappa
PY - 2003
Y1 - 2003
N2 - Applying a modified modelling framework of Feder (1983) and of Ram (1986) to macroeconomic data from China, this paper assesses the direct and indirect (externality) contributions of the non-state sector growth to China’s economic growth, particularly to state-sector growth during the initial period of economic reform. The results from the empirical analysis show that the growth of the non-state sector has induced pressure on the state enterprises through intensified market competition to improve their efficiency, and has thus contributed to economic growth as an externality.
AB - Applying a modified modelling framework of Feder (1983) and of Ram (1986) to macroeconomic data from China, this paper assesses the direct and indirect (externality) contributions of the non-state sector growth to China’s economic growth, particularly to state-sector growth during the initial period of economic reform. The results from the empirical analysis show that the growth of the non-state sector has induced pressure on the state enterprises through intensified market competition to improve their efficiency, and has thus contributed to economic growth as an externality.
UR - https://www.isec.ac.in/journal-of-social-and-economic-development/
M3 - Article
VL - 5
SP - 163
EP - 181
JO - Journal of Social and Economic Development
JF - Journal of Social and Economic Development
IS - 2
ER -