Title

Das (Wasted) Kapital: Firm Ownership and Investment Efficiency in China

David Dollar and Shang-Jin Wei

Das (Wasted) Kapital: Firm Ownership and Investment Efficiency in China

Based on a survey that covers a stratified random sample of 12,400 firms in 120 cities in China with firm-level accounting information for 2002-2004, the authors examine the presence of systematic distortions in capital allocation that result in uneven marginal returns to capital across firm...