IDEAS home Printed from https://ideas.repec.org/p/cda/wpaper/173.html
   My bibliography  Save this paper

Chinese Economic Growth: Sources and Prospects

Author

Listed:
  • Michael Magill
  • Wing Thye Woo
  • Julian R. Betts

    (Department of Economics, University of California Davis)

Abstract

China's impressive growth is rooted in the liberalization of a surplus labor economy that has a high saving rate. The reallocation of surplus agriculture labor to industry and service sectors generates a growth effect that shows up in total factor productivity (TFP) growth. Net TFP, the resulting residual, contains the true measure of technological progress (among other effects). Taking account of mismeasurement problems, especially of value added in the industry sector, I calculated a plausible range of estimates for each source of growth. My point estimates for each of their contribution to the average annual 9.3 percent growth rate in the 1979-93 period growth rate in the 1985-93 subperiod are, respectively: 1979-93 1985-93 4.9 5.5 percentage points from capital accumulation 1.3 1.1 percentage points from labor force expansion. 1.1 1.3 percentage points from reallocation of labor from agriculture 0.2 0.3 percentage points from inconsistent use of base prices, 0.5Ã?0.7 0.9Ã?1.2 percentage points from overstatement of industrial growth, 1.1-1.3 0.3Ã?0.6 percentage points from net TFP growth.

Suggested Citation

  • Michael Magill & Wing Thye Woo & Julian R. Betts, 2003. "Chinese Economic Growth: Sources and Prospects," Working Papers 173, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:173
    as

    Download full text from publisher

    File URL: https://repec.dss.ucdavis.edu/files/584s2tbnCMeWbWnRiYiyJqpp/96-8.pdf
    Download Restriction: no
    ---><---

    More about this item

    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:cda:wpaper:173. 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: Letters and Science IT Services Unit (email available below). General contact details of provider: https://edirc.repec.org/data/educdus.html .

    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.