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Structural change, productivity growth and industrial transformation in China

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  • Chen, Shiyi
  • Jefferson, Gary H.
  • Zhang, Jun

Abstract

China's industry has experienced robust growth under persistent structural reform since 1978. By estimating the stochastic frontier sectoral production function, we find that the TFP growth has exceeded the quantitative growth of inputs since 1992, but the contribution of productivity to output growth declines after 2001. Using a decomposition technique, we then find that the structural change has contributed to TFP and output growth substantially but also decreasingly over time. Empirical analysis reveals that the reforms in factor markets and industrial structure significantly account for the overall trend and the sectoral heterogeneity of factor allocative efficiency during the industrial transformation process.

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Bibliographic Info

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 22 (2011)
Issue (Month): 1 (March)
Pages: 133-150

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Handle: RePEc:eee:chieco:v:22:y:2011:i:1:p:133-150

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Web page: http://www.elsevier.com/locate/chieco

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Keywords: Factor reallocation Structural change Productivity growth Industrial transformation;

References

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Cited by:
  1. Tekla Sebestyén Szép, 2013. "Eight Methods for Decomposing the Aggregate Energy Intensity of the Economic Structure," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 9(01), pages 77-84.
  2. Chen, Shiyi & Santos-Paulino, Amelia U., 2013. "Energy consumption restricted productivity re-estimates and industrial sustainability analysis in post-reform China," Energy Policy, Elsevier, vol. 57(C), pages 52-60.
  3. MILOSAN, Alexandru-Ioan, 2013. "China'S Bubble," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 2(3), pages 34-39, December.
  4. Naudé, Wim & Szirmai, Adam & Lavopa, Alejandro, 2013. "Industrialization Lessons from BRICS: A Comparative Analysis," IZA Discussion Papers 7543, Institute for the Study of Labor (IZA).
  5. Liu, Tung & Li, Kui-Wai, 2012. "Analyzing China's productivity growth: Evidence from manufacturing industries," Economic Systems, Elsevier, vol. 36(4), pages 531-551.
  6. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
  7. Chen, Shiyi, 2013. "What is the potential impact of a taxation system reform on carbon abatement and industrial growth in China?," Economic Systems, Elsevier, vol. 37(3), pages 369-386.

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