Estimating the Competitive Advantages of SOEs and Rivals in China

26 Pages Posted: 2 Mar 2015 Last revised: 29 Apr 2015

Date Written: April 23, 2015

Abstract

This paper estimate the values map of three electronics industries of China in the 2000s. Utilizing demand estimates of the three industries, I draw and a cost-benefit indifferent curve that can depict "cost-advantage strategies" and "benefit-advantage strategies". Results indicate that FIEs takes a benefit-advantage position and private owned enterprise keeps a cost-advantage position, whereas SOEs were trapped in the middle. An additional findings is that benefits of POEs and SOEs were not priced proportionally. Higher benefit products are priced much the same as lower benefit products. This might imply "excess'' price competition among SOEs and POEs.

Keywords: Demand estimates, competitive advantage, cost advantage, benefit advantage, SOE, FIEs

JEL Classification: L1, L63

Suggested Citation

Watanabe, Mariko, Estimating the Competitive Advantages of SOEs and Rivals in China (April 23, 2015). Available at SSRN: https://ssrn.com/abstract=2570792 or http://dx.doi.org/10.2139/ssrn.2570792

Mariko Watanabe (Contact Author)

Gakushuin University ( email )

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Tokyo 171-8588
Japan
+81432771914 (Phone)
432771914 (Fax)

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