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Role of TFP in China's Growth

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Author Info

  • Nazrul Islam
  • Erbiao Dai
  • Hiroshi Sakamoto

Abstract

This paper uses the dual approach to growth accounting to examine the role of total factor productivity (TFP) in recent Chinese growth. Most previous growth accounting studies on China have followed the primal approach, which depends heavily on the national income accounts. Unfortunately, despite efforts to rectify them, Chinese national income accounts data continue to have problems that affect primal approach growth accounting results. The dual approach, in contrast, allows independent price information to play a role. Recent research has focused on the following two questions: (i) How significant has TFP's role been in post-reform Chinese growth? (ii) Has TFP growth rate slowed down in more recent years? This paper finds that: (i) the TFP growth rate for mainland China computed using the dual approach also proves high; and (ii) there has been some slowdown in TFP growth rate in recent years. Copyright 2006 East Asian Economic Association and Blackwell Publishing Ltd..

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Bibliographic Info

Article provided by East Asian Economic Association in its journal Asian Economic Journal.

Volume (Year): 20 (2006)
Issue (Month): 2 (06)
Pages: 127-159

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Handle: RePEc:bla:asiaec:v:20:y:2006:i:2:p:127-159

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Cited by:
  1. Li, Kui-Wai & Liu, Tung, 2011. "Economic and productivity growth decomposition: An application to post-reform China," Economic Modelling, Elsevier, vol. 28(1-2), pages 366-373, January.
  2. Zheng Song & Kjetil Storesletten & Fabrizio Zilibotti, 2011. "Growing Like China," American Economic Review, American Economic Association, vol. 101(1), pages 196-233, February.
  3. Ippei Fujiwara & Keisuke Otsu & Masashi Saito, 2008. "The Global Impact of Chinese Growth," IMES Discussion Paper Series 08-E-22, Institute for Monetary and Economic Studies, Bank of Japan.
  4. Fleisher, Belton M. & Li, Haizheng & Zhao, Min Qiang, 2008. "Human Capital, Economic Growth, and Regional Inequality in China," IZA Discussion Papers 3576, Institute for the Study of Labor (IZA).
  5. Li, Hongyi & Wei, Xiangdong & Xie, Danyang, 2009. "Competitiveness of the Hong Kong economy," China Economic Review, Elsevier, vol. 20(3), pages 573-586, September.
  6. Vennemo, Haakon & Aunan, Kristin & Jianwu, He & Tao, Hu & Shantong, Li, 2009. "Benefits and costs to China of three different climate treaties," Resource and Energy Economics, Elsevier, vol. 31(3), pages 139-160, August.
  7. Chen, Ku-Hsieh & Huang, Yi-Ju & Yang, Chih-Hai, 2009. "Analysis of regional productivity growth in China: A generalized metafrontier MPI approach," China Economic Review, Elsevier, vol. 20(4), pages 777-792, December.
  8. Miria Pigato, 2009. "Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa," World Bank Publications, The World Bank, number 2626, January.
  9. Huang, Xianfeng & Li, Ping & Lotspeich, Richard, 2010. "Economic growth and multi-tasking by state-owned enterprises: An analytic framework and empirical study based on Chinese provincial data," Economic Systems, Elsevier, vol. 34(2), pages 160-177, June.

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