Haiyan Deng (The Conference Board) Robert H. McGuckin (The Conference Board) John C. Haltiwanger () (University of Maryland) Xu Jianyi (NBS) Liu Yaodong (NBS) Liu Yuqi (NBS)
Additional information is available for the following
registered author(s):
China has exhibited very rapid measured aggregate productivity growth. At the same time, the structure of its markets and the structure of businesses have been changing at an equally rapid rate. In this paper, we measure the extent of restructuring and the reallocation of resources (including the reallocation of jobs) and then quantify the contribution of the reallocation and restructuring to the aggregate productivity growth of China's industrial structure. Our gross job flow analysis illustrates that reallocation and restructuring took many forms including shedding of jobs by government controlled enterprises and the increasing share of employment for FDI joint ventures. However, the analysis shows that it is not just shifts between firm types that are important but also reallocation and restructuring within firm types. For example, we find a high pace of job reallocation within SOEs and FDI joint ventures over and above what is needed to accommodate the net changes for these firm types (as high as 28 and 22 percent, respectively). We find evidence that the restructuring and reallocation contributed significantly to the high productivity growth. For example, our analysis shows that more than half of the labor productivity growth in 2001 is due to reallocation and restructuring. In that year, the industrial sector exhibited a labor productivity growth rate of around 22 percent which in the absence of reallocation and restructuring would have been around 10 percent.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.