McGoldrick, PeterPeterMcGoldrickWalsh, Patrick P.Patrick P.Walsh2009-04-022009-04-02Trinity Co2005http://hdl.handle.net/10197/989We estimate the productivity dynamics of 680 industrial Chinese State-Owned Enterprises (SOEs) between 1980 and 1994. During this time managerial autonomy over factor markets was introduced. The timing of autonomy varied across SOEs and take-up was an endogenous process: high-productivity SOEs where more likely to take managerial control. We allow for this by adapting an algorithm developed in Olley & Pakes (1996) in order to generate estimates of productivity dynamics that deal with both simultaneity and endogenous selection biases. Apart from offering a methodology to estimate productivity dynamics during endogenous institutional change, we demonstrate that SOEs in China obtained productivity gains from managerial autonomy over factor markets in the years before privatisation.4304 bytesapplication/pdfenEndogenous selection to institutional changeSimultaneityProduction functionsProductivity dynamicsChinese industrial state-ownedGovernment business enterprises--ChinaIndustrial productivity--ChinaIndustrial organization--ChinaWorking Paperhttps://creativecommons.org/licenses/by-nc-sa/1.0/