Ownership Structure and Determinants of Technical Efficiency : An Application of Data Envelopment Analysis to Chinese Enterprises (1986-1990)

Since economic reforms were initiated in 1978, Chinese industry has experienced dramatic changes in ownership structure and management system. Based on samples in seven three-digit industries in China during 1986-1990, this study evaluates the technical efficiency of enterprises by means of data envelopment analysis. Differences in technical efficiency between state, collective, and township-village enterprises are demonstrated. Limited dependent variable models are employed to analyze determinants of technical efficiency and the impact of various incentive schemes