Overview: Graduate Quantitative Methods Coursework. I conducted a causal inference analysis to measure the impact of the Chinese privatization process (Gaizhi) on Chinese firm performance between 1994-2002. To do this, I compared Key Performance Indicators of Gaizhi firms to those of traditional LLC firm transitions.

What I did: Using R, I ran a Clustered Pooled OLS regression model that accounted for failed Hausman tests. My panel analysis models included Gross Profit Margin (GPM), Return on Asset, and other KPIs to identify statistically significant GPM improvements in Gaizhi firms compared to LLCs. I ran similar code on STATA to visualize Marginal Effect and Regression Table.

Results: My analysis showed that the Gaizhi style firm privatization led to significant improvements in gross profit margin compared to traditional LLC firm transitions. These findings have important implications for translating Gaizhi-style privatization to other transitioning middle-income countries with historically nationalized domestic industries.