ABSTRACT
Resource allocation in enterprises with different ownership types has different effects on economic growth. China has substantial state production; its resource reallocation during the process of economic reform influences economic growth. This chapter investigates China’s cross-province data after the middle of the 1990s. We find that the share of investment in collective and individual enterprises is positively related to the growth rate of per capita industry output, while the share of state-owned enterprises (SOEs) is negatively related to the growth rate. In our test, foreign investment does not make a significant impact on economic growth.
