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An Empirical Analysis of Provincial Productivity in China (1979-2001)

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  • Jinghai Zheng
  • Angang Hu
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    Abstract

    This study estimates and analyzes provincial productivity growth in China for the period 1979-2001. The Malmquist Index approach allows us to decompose productivity growth into two components, technological progress and efficiency change. Considerable productivity growth was found for most of the data period, but it was accomplished mainly through technological progress rather than efficiency improvement. Although China's capital stock has accumulated at record speed in recent years, our findings show that TFP growth slowed down significantly during 1995-2001. The study thus raises serious questions about whether China's recent growth pattern is consistent with its comparative advantages, and whether its reliance on capital accumulation can be sustained in the long run.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600991917
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Journal of Chinese Economic and Business Studies.

    Volume (Year): 4 (2006)
    Issue (Month): 3 ()
    Pages: 221-239

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    Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:221-239

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    Related research

    Keywords: Productivity; technological progress; efficiency; China; JEL Classification: O47; O53; D24;

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    References

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    1. Jefferson, Gary H. & Rawski, Thomas G. & Li, Wang & Yuxin, Zheng, 2000. "Ownership, Productivity Change, and Financial Performance in Chinese Industry," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 786-813, December.
    2. Jesus Felipe, 1999. "Total factor productivity growth in East Asia: A critical survey," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 1-41.
    3. Oulton,Nicholas & O'Mahony,Mary, 1994. "Productivity and Growth," Cambridge Books, Cambridge University Press, number 9780521453455, December.
    4. Yanrui Wu, 2003. "Has Productivity Contributed to China's Growth?," Pacific Economic Review, Wiley Blackwell, vol. 8(1), pages 15-30, 01.
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    Cited by:
    1. Zheng, Jinghai & Bigsten, Arne & Hu, Angang, 2006. "Can China’s Growth be Sustained? A Productivity Perspective," Working Papers in Economics 236, University of Gothenburg, Department of Economics.

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