IDEAS home Printed from https://ideas.repec.org/a/fec/journl/v1y2006i1p1-13.html
   My bibliography  Save this article

Factor Mobility and Dispersion in Marginal Products: A Case on China

Author

Listed:
  • Gong Liutang

    (Guanghua School of Management, Peking University, Beijing, 100871, PRC)

  • Xie Danyang

    (Department of Economics, The Hong Kong University of Science and Technology, Hong Kong, China)

Abstract

This paper examines the efficiency in resource allocation in China. We estimate production functions at the provincial level and use these functions to compute time series for marginal products of capital and labor. We found that dispersion in the marginal product of capital declined from 1970 to 1984 and then became stable afterward, whereas the dispersion in the marginal product of labor declined initially but the trend has been reversed since 1993. We argue that this reversal may indicate any of the following: (1) policy-driven labor migration adding to labor market inefficiency; (2) the presence of increasing returns in labor; and (3) both capital and labor having become mobile since 1993.

Suggested Citation

  • Gong Liutang & Xie Danyang, 2006. "Factor Mobility and Dispersion in Marginal Products: A Case on China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 1(1), pages 1-13, March.
    • Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:1-13
    as

    Download full text from publisher

    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0006-x
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    2. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    3. Lin, Boqiang & Long, Houyin, 2016. "Input substitution effect in China׳s chemical industry: Evidences and policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1617-1625.
    4. Quint Wiersma, 2019. "The impact of WTO accession on Chinese firms' product and labor market power," Tinbergen Institute Discussion Papers 19-037/V, Tinbergen Institute.

    More about this item

    Keywords

    inefficiency; resource allocation; Chinese economy;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fec:journl:v:1:y:2006:i:1:p:1-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Frank H. Liu (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.