Journal of Forest Economics > Vol 18 > Issue 3

Ownership, autonomy, incentives and efficiency: Evidence from the forest product processing industry in China

Haoran He, , haoran.he@bnu.edu.cn Qian Weng, , qian.weng@economics.gu.se
 
Suggested Citation
Haoran He and Qian Weng (2012), "Ownership, autonomy, incentives and efficiency: Evidence from the forest product processing industry in China", Journal of Forest Economics: Vol. 18: No. 3, pp 177-193. http://dx.doi.org/10.1016/j.jfe.2012.02.001

Published: 0/8/2012
© 0 2012 Haoran He, Qian Weng
 
Subjects
 
Keywords
JEL Codes:D23D24L73L78
Forest product processing millsData envelopment analysisTruncated regressionBootstrapChina
 

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In this article:
Introduction
Background of China's state-owned forest areas and its reform
Methodology
Data and variables
Empirical results
Conclusions and implications

Abstract

Using enterprise-level data from China's Northeast-Inner Mongolia state-owned forest area for the year 2004, this paper investigates the technical efficiency of forest product processing mills and the relationship between institutional and managerial practices and efficiency. A two-stage procedure proposed by Simar and Wilson (2007) is adopted. In the first stage, a bootstrapped data envelopment analysis (DEA) model is used to compute the efficiency scores. In the second stage, the bootstrapped DEA scores are estimated over a set of mills’ institutional and managerial systems and other characteristics with a bootstrapped truncated regression. The results show that there is a wide dispersion in the technical efficiency among mills. Private ownership, autonomy and mill size have statistically significant positive impacts on efficiency. These results provide support for the ongoing reform and implications for future development of this area.

DOI:10.1016/j.jfe.2012.02.001