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A Survey of Total Factor Productivity and Technical Change in the Chinese Economy 1979-1996

Author

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  • Liang, Qi
  • Phillips, Garry

Abstract

This paper examines the growth of productivity and technical change in the rapid development of the Chinese economy since China opened its door to the world. Based on a study of available empirical evidence and relevant statistics, the paper argues that there has been remarkable technological progress in China in the period 1979-1996. The original source of that change was China's reform and openness policy. The important role played by foreign trade and foreign direct investment is highlighted. Also the paper suggests that high output growth was more affected by an increased input of resources than by technical change. It is argued that only by improving endogenous growth through increasing the rate of technical-intensive development will China sustain a growing economy.

Suggested Citation

  • Liang, Qi & Phillips, Garry, 1999. "A Survey of Total Factor Productivity and Technical Change in the Chinese Economy 1979-1996," Discussion Papers 9901, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:9901
    as

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