Traditional panel stochastic frontier studies on privatization of Chinese State-owned firms face a major challenge, namely, the endogeneity problem. The endogeneity problem is present because decision-making process of privatization in China is very likely influenced by some unobserved...

This paper studies the effects of privatization and non-ownership-change reforms on firms’ productivity in China. As one of the most prominent empirical challenges in China privatization studies, endogeneity problems are addressed with a first-difference instrumental variable GMM estimation....