This book investigates the comparative performance of state-owned and non-state enterprises within China's industrial sector, utilizing modern econometric techniques to analyze empirical data. The author, Y. Wu, applies various production functions to cross-section and panel data, examining both aggregate and firm-specific efficiencies. The research explores how factors such as ownership, scale, factor intensity, location, and the ongoing economic reforms influence efficiency differentials. Special attention is given to regional comparisons of industrial development and performance, with a focus on the implications for economic and reform policy.

The book is recognized for its application of modern econometric techniques to Chinese economic data, with Christopher Findlay of the University of Adelaide noting its contribution to understanding industrial sector reform. The research is highlighted for its empirical results derived from specially collected data, offering new insights into efficiency and productivity growth. The focus on comparing state-owned and non-state enterprises, particularly rural and private firms, addresses significant shifts in the Chinese economy. Its findings are considered relevant for those interested in China's economic reforms and their impact on industrial efficiency.