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Labor Productivity Differences in China 1987-1997: An Interregional Decomposition Analysis

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Author Info

  • Yang, Ling

    (Xi'an Jiaotong U)

  • Lahr, Michael L.

    (Rutgers U)

Abstract

The literature on regional disparities in China is both broad and deep. Nonetheless, much of its focus has been on the effects of trade liberalization and national policies toward investment in interior provinces. Few pieces have examined whether the disparities might simply be due to differences in industry mix, final demand, or even interregional trade. Using two newly published multiregional input-output tables and disaggregated employment data, we decompose change in labor productivity growth for seven regions of China between 1987 and 1997 into five partial effects--changes in value added coefficients, direct labor requirements, aggregate production mix, interregional trade, and final demand. Subsequently we summarize the contributions to labor productivity of the different factors at the regional level. In this way, we present a new perspective on recent causes of China's interregional disparity in GDP per capita.

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Bibliographic Info

Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 38 (2008)
Issue (Month): 3 ()
Pages: 319-41

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Handle: RePEc:rre:publsh:v:38:y:2008:i:3:p:319-41

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Related research

Keywords: Employment Data; Input Output; Interregional trade; Labor Productivity; Productivity; Regional; Regions;

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Cited by:
  1. Strohmaier, Rita & Rainer, Andreas, 2013. "On the Eonomic Purpose of General Purpose Technologies: A Combined Classical and Evolutionary Framework," MPRA Paper 45964, University Library of Munich, Germany.
  2. Zhang, Haiyan & Lahr, Michael L., 2014. "China's energy consumption change from 1987 to 2007: A multi-regional structural decomposition analysis," Energy Policy, Elsevier, vol. 67(C), pages 682-693.
  3. Su, Biwei & Heshmati, Almas, 2011. "Development and Sources of Labor Productivity in Chinese Provinces," IZA Discussion Papers 6263, Institute for the Study of Labor (IZA).
  4. Yang, Ling & Lahr, Michael L., 2010. "Sources of Chinese labor productivity growth: A structural decomposition analysis, 1987-2005," China Economic Review, Elsevier, vol. 21(4), pages 557-570, December.
  5. Xuemei Jiang & Erik Dietzenbacher & Bart Los, 2014. "A dissection of the growth of regional disparities in Chinese labor productivity between 1997 and 2002," The Annals of Regional Science, Springer, vol. 52(2), pages 513-536, March.

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