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The Response of State-Owned Enterprises to Import Competition: Evidence from Chinese Manufacturing Firms

Duanmu, Jing-Lin and Pittman, Russell (2019) The Response of State-Owned Enterprises to Import Competition: Evidence from Chinese Manufacturing Firms Annals of Public and Cooperative Economics, 90 (4). pp. 577-613.

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Abstract

We examine the wage and employment impact on Chinese firms of an increase in import competition associated with China’s WTO accession in December 2001, with an emphasis on state-owned enterprises (SOEs). We find that both wage and employment are negatively impacted by an increase in import competition, but firms with high state ownership cut employment less and reduce wages more than their private counterparts, suggesting that they prioritize the protection of employment over that of wages. This finding supports the notion that SOEs may have “multitask” responsibilities in terms of protecting employment as well as achieving efficiency. We also find that firms with higher capital intensity reduce their wages less but cut employment more in response to intensified import competition. This provides empirical support for the efficiency wage theory.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors :
NameEmailORCID
Duanmu, Jing-LinJ.Duanmu@surrey.ac.uk
Pittman, Russell
Date : December 2019
DOI : 10.1111/apce.12246
Copyright Disclaimer : © 2019 The Authors. Annals of Public and Cooperative Economics © 2019 CIRIEC
Uncontrolled Keywords : State-owned enterprises; Import competition; Wages; Employment levels; China; Multitask theory of state-owned-enterprises; Efficiency wage theory
Related URLs :
Depositing User : Clive Harris
Date Deposited : 29 Mar 2019 09:48
Last Modified : 18 Dec 2019 12:00
URI: http://epubs.surrey.ac.uk/id/eprint/850957

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