Title: Ownership reform in action: does gratuitous transfer boost productivity in China's transportation enterprises?

Authors: Jinglei Yang; Mengchi Li; Xiaofan Wu

Addresses: Business School, Nankai University, China ' School of Shipping Economics and Trade, Guangzhou Maritime University, China ' College of Economic and Social Development, Nankai University, China

Abstract: This study aims to empirically investigate the impact of gratuitous transfers on total factor productivity (TFP) within China's state-owned enterprises (SOEs), specifically focusing on the transportation sector. In doing so, we challenge the traditional scepticism regarding the effectiveness of gratuitous transfers as a mechanism for enhancing productivity. Gratuitous transfers stand as an important instrument for ownership reform in China's SOEs. Using a difference-in-difference model and analysing data from 98 transportation companies over 20 years, the research shows that gratuitous transfers can significantly boost total factor productivity (TFP) in transportation sector. Unlike conventional mergers and acquisitions (M&A) which focus on short-term gains, gratuitous transfers target long-term productivity through governance reforms and digitalisation. The study also underscores the importance of transparency and fairness in the gratuitous transfer process to ensure its positive impact on SOEs' efficiency.

Keywords: transportation sector; total factor productivity; TFP; state-owned enterprises; SOEs; difference-in-difference model; mechanism analyses; China; gratuitous transfer.

DOI: 10.1504/IJSTL.2025.148842

International Journal of Shipping and Transport Logistics, 2025 Vol.21 No.3, pp.295 - 316

Received: 28 Jun 2024
Accepted: 06 Nov 2024
Published online: 29 Sep 2025 *

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