The Patterns of Chinese Firm Growth: A Conditional Estimation Approach of the Asymmetric Exponential Power Density

Matthias Duschl, Philipps University of Marburg, Deutschhausstr, and Shi-Shu Peng, Academia Sinica

Industrial and Corporate Change

Abstract: This article investigates the impact of ownership type on the entire growth rate distributional mass of Chinese firms, using a conditional estimation approach of the asymmetric exponential power density that goes beyond simple location-shift analysis. We first find a Chinese growth puzzle, i.e. a deviation from the stylized fact of the variance-scaling relationship commonly observed in Western European economies. We then find that the ownership type mainly affects growth rates far-off the mean value. Our results also indicate that barriers to becoming a high growth firm, such as financial constraints, are especially prevalent in the Chinese private sector.

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