Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272787 
Year of Publication: 
2023
Series/Report no.: 
GLO Discussion Paper No. 1296
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
The impact of the incumbent state-owned enterprises (SOEs) on the births of new private-owned enterprises (POEs) in China is a central concern for the government and society. In this paper, we apply agglomeration theories to distinguish the linkages between SOEs and POEs. Using China's 2008 economic census, the 2007 Input-Output Table, and the 2005 population mini census, we measure the formation of new POEs at the city-industry level, and the agglomeration forces of distance proximity to inputs, outputs, labor, and technology. More explicitly, we measure the extent to which local SOEs provide relevant inputs, consume outputs, employ similar workers, and use similar technology. Our findings indicate that overall, incumbent SOEs hinder the formation of new POEs. For manufacturing, the entry of new POEs is significantly lower in places where more upstream SOEs are concentrated. For services, the entry of new POEs is significantly lower in places where more upstream and downstream SOEs are concentrated. However, the agglomeration effects from the incumbent POEs are either insignificant or significantly positive.
Subjects: 
New Firm Formation
State-owned Enterprise
Firm Ownership
Agglomeration
JEL: 
L26
L60
L80
R10
R12
Document Type: 
Working Paper

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