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Has Productivity Contributed to China's Growth?

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  • Yanrui Wu

    () (University of Western Australia)

Abstract

This paper applies an extended Solow approach to examine the role of productivity in China's economic growth. The extended Solow approach allows the decomposition of output growth into factor contributions, technological progress and efficiency change. It is found that total factor productivity (TFP) has on average contributed to 13.5 percent of China's economic growth in the past two decades. This contribution is mainly due to technological progress which tends to accelerate over time. However, during 1982-97 efficiency change due to catch-up has been very volatile, reflecting the uncertainties associated with economic reforms and transition in China. Copyright 2003 Blackwell Publishing Ltd.

Suggested Citation

  • Yanrui Wu, 2003. "Has Productivity Contributed to China's Growth?," Pacific Economic Review, Wiley Blackwell, vol. 8(1), pages 15-30, January.
  • Handle: RePEc:bla:pacecr:v:8:y:2003:i:1:p:15-30
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    Cited by:

    1. Kui-Wai Li & Tung Liu & Lihong Yun, 2007. "Technology Progress, Efficiency, and Scale of Economy in Post-reform China," Working Papers 200701, Ball State University, Department of Economics, revised Apr 2007.
    2. Zheng, Jinghai & Hu, Angang, 2004. "An Empirical Analysis of Provincial Productivity in China (1979-2001)," Working Papers in Economics 127, University of Gothenburg, Department of Economics, revised 22 Mar 2004.
    3. Jinghai Zheng & Angang Hu, 2006. "An Empirical Analysis of Provincial Productivity in China (1979-2001)," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 4(3), pages 221-239.
    4. Li, Kui-Wai & Liu, Tung, 2011. "Economic and productivity growth decomposition: An application to post-reform China," Economic Modelling, Elsevier, vol. 28(1-2), pages 366-373, January.
    5. Hua, Ping, 2007. "Real exchange rate and manufacturing employment in China," China Economic Review, Elsevier, vol. 18(3), pages 335-353.
    6. Ping HUA, 2005. "Real exchange rate and employment in the manufacturing sector in China," Working Papers 200528, CERDI.
    7. Zhou, Xianbo & Li, Kui-Wai & Li, Qin, 2011. "An analysis on technical efficiency in post-reform China," China Economic Review, Elsevier, vol. 22(3), pages 357-372, September.
    8. Neil Foster-McGregor & Johannes Pöschl & Ana Rincon-Aznar & Robert Stehrer & Michaela Vecchi & Francesco Venturini, 2014. "Reducing Productivity and Efficiency Gaps: the Role of Knowledge Assets, Absorptive Capacity and Institutions," wiiw Research Reports 396, The Vienna Institute for International Economic Studies, wiiw.
    9. Shiyi Chen & Amelia U. Santos-Paulino, 2013. "Energy Consumption and Carbon Emission Based Industrial Productivity in China: A Sustainable Development Analysis," Review of Development Economics, Wiley Blackwell, vol. 17(4), pages 644-661, November.
    10. Shi, Yingying & Guo, Shen & Sun, Puyang, 2017. "The role of infrastructure in China’s regional economic growth," Journal of Asian Economics, Elsevier, vol. 49(C), pages 26-41.
    11. Tang, Liwei & Hu, Zongyi, 2014. "生产要素、Fdi、环境污染与中国经济增长源泉——基于bm生产率指数的分解
      [Production factors, FDI, environmental depletion and sources of economic growth in China ——based on the decomposition of BM productivity index]
      ," MPRA Paper 59184, University Library of Munich, Germany.
    12. CHI, Wei, 2008. "The role of human capital in China's economic development: Review and new evidence," China Economic Review, Elsevier, vol. 19(3), pages 421-436, September.
    13. Kui-Wai Li & Tung Liu & Lihong Yun, 2008. "Decomposition of Economic and Productivity Growth in Post-reform China," Working Papers 200806, Ball State University, Department of Economics, revised Dec 2008.
    14. repec:eee:ecmode:v:69:y:2018:i:c:p:114-126 is not listed on IDEAS
    15. repec:eee:ecmode:v:64:y:2017:i:c:p:334-348 is not listed on IDEAS

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