. Using a rich set of panel data about changes in China`s state-owned enterprises, Xu examines the static and dynamic effects … performance contracts - conventionally viewed as the most important reforms for China's state enterprises - did not improve … productivity much.Overall, decentralization accounted for at least 42 percent of productivity growth in Chinese state enterprises …

, likely the engine for innovation in the coming years in China, are especially financially constrained, due perhaps to the …-the-big-and-letting-go-the-small' privatization program in China. Our empirical results suggest that government connections play an important role in explaining … Chinese firms' financing conditions, and provide further evidence on the nature of the misallocation of credit by China …