Skip to Main Content
U.S. Forest Service
Caring for the land and serving people

United States Department of Agriculture

Home > Search > Publication Information

  1. Share via EmailShare on FacebookShare on LinkedInShare on Twitter
    Dislike this pubLike this pub


    State-owned forest enterprises (SOFEs) in northeast China have experienced past economic loss andenvironmental degradation, causing government to seek reforms. Measurement of technical efficiencyallows us to evaluate overall trends and how reforms affect production of social and environmental goods.Previous assessments have used small samples, short time periods, and viewed SOFEs as if they wereprofit-maximizers. We compared a traditional profit-maximization framework to an alternative "socialfirms" framework for SOFEs to classify inputs and outputs, and data envelopment analysis to measure theefficiency of 86 SOFEs from 2003 to 2009. We argue that the social firm framework is more appropriatefor SOFEs given their stated objectives. We found no overall trend in pure technical efficiency over timefor the social firm framework; however, there was an increase in pure technical efficiency for the profitmaximization framework, consistent with past literature. At the same time, there were decreases in scaleefficiency primarily due to higher levels of government investment. We compared groups of SOFEs thatunderwent a specific pilot forest tenure reform to those that did not, and we found no evidence to supportthat tenure reform improved technical efficiency.

    Publication Notes

    • You may send email to to request a hard copy of this publication.
    • (Please specify exactly which publication you are requesting and your mailing address.)
    • We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
    • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.


    Han, Xue; Frey, Gregory E.; Geng, Yude; Cubbage, Frederick W.; Zhang, Zhaohui. 2018. Reform and efficiency of state-owned forest enterprises in Northeast China as “social firms”. Journal of Forest Economics. 32: 18-33.


    Google Scholar


    Data envelopment analysis, Technical efficiency, State-owned forest enterprise, Forest tenure reform, Social firm, Tobit panel model

    Related Search

    XML: View XML
Show More
Show Fewer
Jump to Top of Page