A Structural Analysis of the Value-Added Effects of Enterprises: A Re-Assessment

This paper uses structural equation modeling to examine the effects of state-owned enterprises on the growth of output. Using a covariance matrix derived from cross-sectional data, it is shown through LISREL estimation modeling that total effects on output may not be completely negative as previously observed under other procedures. However, the use of the variable in an ordinary least squares framework in combination with other endogenous variables produces weak and negative results.