Development in North East People's Republic of China: An Analysis of Enterprise Performance 1995-2002
Regional inequality is now a key policy issue in the People's Republic of China (PRC). The old industrial base of the north-east has recently become another priority area for regional policy.
The paper surveys the literature on regional development in PRC. Drawing on the results of earlier work it uses a unique database to examine in detail the performance of medium and large-scale enterprises in the north-east. It finds that while they have lower productivity and profitability than the national average, this relatively weak performance is not just the result of differences in ownership and industrial structure. There appears to be a location effect specific to the north-east that is due to the poor investment climate in the region. The paper quantifies the impact of this effect in terms of lower productivity and profitability.
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The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
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