Abstract:
This paper studies the phenomenon of “negative efficiency spillovers” caused by state-owned enterprises (SOEs) under credit discrimination. By implementing the Malmquist index method, the total factor productivity (TFP) at China’s provincial level is calculated and is decomposed into technology efficiency and technology progress. Using China’s provincial panel data, we find that the share of SOEs has different impact on the two compositions of TFP. It promotes technology progress while hinders technology efficiency Moreover, the scale expansion of financial development improves both of the above two effects of the share of SOEs. Our empirical findings pass several robust checks.
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