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Analyzing Productivity Growth: Evidence from China’s Manufacturing Industries

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Author Info

  • Kui-Wai Li

    ()
    (City University of Hong Kong, Hong Kong SAR)

  • Tung Liu

    ()
    (Department of Economics, Ball State University)

Abstract

This article examines the growth attributes of manufacturing industries in China for the sample period of 1999-2007. All manufacturing industries are grouped into and four main industry groups and four geographical regions. A revised Solow’s growth method is used to decompose the growth attributes into input growth, scale effect, technical progress, and technical efficiency change. A stochastic frontier model is applied to the translog production function. The empirical findings show a strong presence of technical progress, while labor input has rapidly been replaced by human capital. Structural transformation in the industrial sector is evident, so as regional imbalances.

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File URL: http://econfac.iweb.bsu.edu/research/workingpapers/bsuecwp201003r2li.pdf
File Function: First version, March 2010
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Bibliographic Info

Paper provided by Ball State University, Department of Economics in its series Working Papers with number 201003.

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Length: 31 pages
Date of creation: Mar 2010
Date of revision: Dec 2010
Handle: RePEc:bsu:wpaper:201003

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Keywords: China industries; productivity; efficiency; technical progress; stochastic frontier model;

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