Distribution reform and labour productivity in China: an evaluation of performance and public policy

The retail structure of the People’s Republic of China has been undergoing rapid changes since the implementation of the economic reform. Examines the socioeconomic factors which determine the performance of retailing enterprises measured by their sales per employee at the provincial level by using a data set of 30 provinces over eight years (1985‐1992). Obtains the following empirical results: per capita national income, stores per capita, average real wage and mobility are significant factors accounting for the variations in the performance; test statistics show that the implementation of the 1988 austerity programme has altered the retail structure significantly.