This report examines the progress of China’s transition to a market economy by assessing how its program of increased federalism and more private ownership has affected business productivity, using a comprehensive data set of almost 23,000 enterprises operating in China in 1995.

Major findings:

• State-Owned Enterprises Are Not All Alike
• Locally Administered Firms of All Ownership Structures Perform Better
• Ownership Structure Matters for Federally Administered Enterprises
• Mixed Private and Public Enterprises are More Efficient Than State-Owned Enterprises in Both Federal and Local Jurisdictions
• Structural Reforms Likely to Continue

Special features:

• Executive summary and description of study design
• Firm characteristics by ownership type and jurisdiction