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The Dynamics of Provincial Growth in China: A Nonparametric Approach

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  • Bulent Unel

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  • Harm Zebregs

    ()

Abstract

We use a recently developed non-parametric approach to analyze the variation in labor productivity growth across China's provinces. This approach imposes less structure on the data than the standard growth accounting framework and allows for a breakdown of labor productivity into capital deepening, efficiency gains, and technological progress. We find that capital deepening is the prime factor behind the change in the distributional dynamics of the labor productivity: on average capital deepening accounts for 75 percent of total labor productivity growth, while improvements in efficiency and technological progress account for 7 percent and 18 percent, respectively. We also find that while improvements in efficiency levels are higher in initially less productive provinces, relatively more productive provinces benefitted more from technological progress than less developed ones.

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Paper provided by Department of Economics, Louisiana State University in its series Departmental Working Papers with number 2007-03.

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Handle: RePEc:lsu:lsuwpp:2007-03

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Cited by:
  1. Curran, Declan & Funke, Michael & Wang, Jue, 2007. "Economic growth across space and time: subprovincial evidence from Mainland China," BOFIT Discussion Papers 21/2007, Bank of Finland, Institute for Economies in Transition.
  2. Li, Kui-Wai & Liu, Tung, 2011. "Economic and productivity growth decomposition: An application to post-reform China," Economic Modelling, Elsevier, vol. 28(1), pages 366-373.
  3. Diego Romero-Ávila, 2013. "Is Physical Investment The Key To China'S Growth Miracle?," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 1948-1971, October.
  4. Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.

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