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Resource Allocation and Economic Growth in China

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  • Lin, Shuanglin

Abstract

This article shows that the allocation of resources among enterprises of different types of ownership is important to economic growth. The data on 30 Chinese provinces indicate that the investment share of state enterprises is negatively related to the growth rate of per-capita GDP, while the investment share of private enterprises is positively related to the growth rate. Meanwhile, the effect of total investment on the growth rate of per-capita GDP appears to be insignificant. The share of trade in GDP was positively related to economic growth. Also, the illiteracy rate of employees was negatively related to economic growth. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Lin, Shuanglin, 2000. "Resource Allocation and Economic Growth in China," Economic Inquiry, Western Economic Association International, vol. 38(3), pages 515-526, July.
    • Handle: RePEc:oup:ecinqu:v:38:y:2000:i:3:p:515-26
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    Cited by:

    1. Kui-Wai Li & Tung Liu & Lihong Yun, 2007. "Technology Progress, Efficiency, and Scale of Economy in Post-reform China," Working Papers 200701, Ball State University, Department of Economics, revised Apr 2007.
    2. 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.
    3. Xinru Miao & Shaopeng Wang & Jiqin Han & Zhaoyi Ren & Teng Ma & Henglang Xie, 2024. "The Regional Heterogeneity of the Impact of Agricultural Market Integration on Regional Economic Development: An Analysis of Pre-COVID-19 Data in China," Sustainability, MDPI, vol. 16(5), pages 1-33, February.
    4. Shuanglin Lin & Shunfeng Song, 2002. "Urban Economic Growth in China: Theory and Evidence," Urban Studies, Urban Studies Journal Limited, vol. 39(12), pages 2251-2266, November.
    5. Caoyuan Ma & Pin Guo & Zhao Zhang, 2022. "Structural Deleveraging: Evidence from China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 30(6), pages 137-162, November.
    6. Xianfeng Huang & Ping Li & Richard Lotspeich, 2009. "The size of the SOE sector and macroeconomic performance: an empirical study based on Chinese provincial data," Economic Change and Restructuring, Springer, vol. 42(4), pages 319-343, November.
    7. Chen, Anping & Groenewold, Nicolaas, 2013. "Does investment allocation affect the inter-regional output gap in China? A time-series investigation," China Economic Review, Elsevier, vol. 26(C), pages 197-206.
    8. Kui-Wai Li & Tung Liu & Lihong Yun, 2008. "Decomposition of Economic and Productivity Growth in Post-reform China," Working Papers 200806, Ball State University, Department of Economics, revised Dec 2008.

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