Did the technical efficiency of state enterprises improve with the same speed in all provinces in China?
The objectives of this study are to examine whether technical efficiency of China's state enterprises improved over time due to the impact of economic reforms and to examine whether the response rates varied significantly across provinces. The results carry strong policy implications for future reforms. The empirical results show that technical efficiency improved significantly due to economic reforms from 1986 to 1989. Shanghai appears to have responded more quickly and consistently to economic reforms than other provinces over the period.