IDEAS home Printed from https://ideas.repec.org/a/aka/aoecon/v69y2019isupplement1p7-20.html
   My bibliography  Save this article

Institutional Reform and Economic Growth of China: 40-year Progress Toward Marketization

Author

Listed:
  • Fan, Gang

    (Peking University HSBC Business School
    National Economic Research Institute)

  • Ma, Guangrong

    (School of Finance and China Financial Policy Research Center, Renmin University of China)

  • Wang, Xiaolu

    (National Economic Research Institute)

Abstract

China has persevered its market-oriented economic transition since 1978. In this paper, we use the provincial-level NERI Index of Marketization from 1997 to 2014 and a panel data model to investigate the quantitative contribution of market-oriented reforms to China’s total factor productivity (TFP) and economic growth. Our results indicate that marketization reforms contributed 1.3 percentage points to China’s annual economic growth rate and accounted for 35 percent of the increase in TFP. This means that the institutional reforms significantly improved resource allocation. However, economic transition in China has not yet been completed and sustainability of future growth will depend on further market-oriented reforms.

Suggested Citation

  • Fan, Gang & Ma, Guangrong & Wang, Xiaolu, 2019. "Institutional Reform and Economic Growth of China: 40-year Progress Toward Marketization," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 69(supplemen), pages 7-20, January.
    • Handle: RePEc:aka:aoecon:v:69:y:2019:i:supplement1:p:7-20
    Note: This research was supported by the Fundamental Research Founds for the Central Universities and the Research Funds of Renmin University of China (No. 18 XNQ004).
    as

    Download full text from publisher

    File URL: http://www.akademiai.com/doi/pdf/10.1556/032.2019.69.S1.2
    Download Restriction: subscription
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P24 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - National Income, Product, and Expenditure; Money; Inflation

    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:aka:aoecon:v:69:y:2019:i:supplement1:p:7-20. 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: Kriston, Orsolya (email available below). General contact details of provider: https://akademiai.hu/ .

    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.