IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Structural change, productivity growth and industrial transformation in China

  • Chen, Shiyi
  • Jefferson, Gary H.
  • Zhang, Jun

China's industry has experienced robust growth under persistent structural reform since 1978. By estimating the stochastic frontier sectoral production function, we find that the TFP growth has exceeded the quantitative growth of inputs since 1992, but the contribution of productivity to output growth declines after 2001. Using a decomposition technique, we then find that the structural change has contributed to TFP and output growth substantially but also decreasingly over time. Empirical analysis reveals that the reforms in factor markets and industrial structure significantly account for the overall trend and the sectoral heterogeneity of factor allocative efficiency during the industrial transformation process.

If you experience problems downloading a file, check if you have the proper application to view it first. 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.

File URL: http://www.sciencedirect.com/science/article/B6W46-51C4RT4-2/2/25275f905f90f0cdd76adcc9f9eef603
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal China Economic Review.

Volume (Year): 22 (2011)
Issue (Month): 1 (March)
Pages: 133-150

as
in new window

Handle: RePEc:eee:chieco:v:22:y:2011:i:1:p:133-150
Contact details of provider: Web page: http://www.elsevier.com/locate/chieco

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Duo Qin & Haiyan Song, 2007. "Sources of Investment Inefficiency: The Case of Fixed-Asset Investment in China," Working Papers 584, Queen Mary University of London, School of Economics and Finance.
  2. Borensztein, Eduardo & Ostry, Jonathan D, 1996. "Accounting for China's Growth Performance," American Economic Review, American Economic Association, vol. 86(2), pages 224-28, May.
  3. Li, Kui-Wai, 2009. "China's total factor productivity estimates by region, investment sources and ownership," Economic Systems, Elsevier, vol. 33(3), pages 213-230, September.
  4. Gary Jefferson & Thomas Rawski & Yifan Zhang, 2008. "Productivity growth and convergence across China's industrial economy," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 121-140.
  5. Chow, G.C., 1990. "Capital Formation And Economic Growth In China," Papers 67, Princeton, Woodrow Wilson School - Discussion Paper.
  6. Fisher-Vanden, Karen & Jefferson, Gary H., 2008. "Technology diversity and development: Evidence from China's industrial enterprises," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 658-672, December.
  7. Francesco Caselli, 2004. "Accounting for Cross-Country Income Differences," NBER Working Papers 10828, National Bureau of Economic Research, Inc.
  8. L. Rachel Ngai & Christopher Pissarides, 2005. "Structural change in a multi-sector model of growth," LSE Research Online Documents on Economics 4656, London School of Economics and Political Science, LSE Library.
  9. Li, Shaomin & Xia, Jun, 2008. "The Roles and Performance of State Firms and Non-State Firms in China's Economic Transition," World Development, Elsevier, vol. 36(1), pages 39-54, January.
  10. César Calderón & Gianmarco León & Alberto E. Chong, 2006. "Institutional Enforcement, Labor-Market Rigidities, and Economic Performance," IDB Publications (Working Papers) 6836, Inter-American Development Bank.
  11. Subodh Kumar & R. Robert Russell, 2002. "Technological Change, Technological Catch-up, and Capital Deepening: Relative Contributions to Growth and Convergence," American Economic Review, American Economic Association, vol. 92(3), pages 527-548, June.
  12. Gregory Chow, 2008. "Another look at the rate of increase in TFP in China," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 219-224.
  13. Bai, Chong-En & Lu, Jiangyong & Tao, Zhigang, 2009. "How does privatization work in China?," Journal of Comparative Economics, Elsevier, vol. 37(3), pages 453-470, September.
  14. Wu, Zhongmin & Yao, Shujie, 2003. "Intermigration and intramigration in China: A theoretical and empirical analysis," China Economic Review, Elsevier, vol. 14(4), pages 371-385.
  15. Frazier, Mark W., 2006. "State-sector shrinkage and workforce reduction in China," European Journal of Political Economy, Elsevier, vol. 22(2), pages 435-451, June.
  16. Jean-Claude Berthelémy & Ludvig Soderling, 1999. "The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-Off: Empirical Evidence from African Growth Episodes," Working Papers 1999-07, CEPII research center.
  17. Gong, Gang & Lin, Justin Yifu, 2008. "Deflationary expansion: An overshooting perspective to the recent business cycle in China," China Economic Review, Elsevier, vol. 19(1), pages 1-17, March.
  18. Jefferson, Gary H. & Rawski, Thomas G. & Li, Wang & Yuxin, Zheng, 2000. "Ownership, Productivity Change, and Financial Performance in Chinese Industry," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 786-813, December.
  19. Kumbhakar, Subal C., 1990. "Production frontiers, panel data, and time-varying technical inefficiency," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 201-211.
  20. Jun, Zhang, 2003. "Investment, investment efficiency, and economic growth in China," Journal of Asian Economics, Elsevier, vol. 14(5), pages 713-734, October.
  21. Li, Hongbin & Rozelle, Scott, 2000. "Saving or stripping rural industry: an analysis of privatization and efficiency in China," Agricultural Economics, Blackwell, vol. 23(3), pages 241-252, September.
  22. Bhaumik, Sumon Kumar & Estrin, Saul, 2007. "How transition paths differ: Enterprise performance in Russia and China," Journal of Development Economics, Elsevier, vol. 82(2), pages 374-392, March.
  23. Heckman, James J., 2005. "China's human capital investment," China Economic Review, Elsevier, vol. 16(1), pages 50-70.
  24. Wei Li, 1994. "The Impact of Economic Reform on the Performance of Chinese State Enterprises: 1980--1989," Development and Comp Systems 9410001, EconWPA.
  25. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
  26. Chen, Ku-Hsieh & Huang, Yi-Ju & Yang, Chih-Hai, 2009. "Analysis of regional productivity growth in China: A generalized metafrontier MPI approach," China Economic Review, Elsevier, vol. 20(4), pages 777-792, December.
  27. Barry Bosworth & Susan M. Collins, 2007. "Accounting for Growth: Comparing China and India," NBER Working Papers 12943, National Bureau of Economic Research, Inc.
  28. Li, Hongbin & Rozelle, Scott, 2000. "Saving or stripping rural industry: an analysis of privatization and efficiency in China," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
  29. W, Y, 1995. "Productivity Growth, Technological Progress, and Technical Efficiency Change in China: A Three-Sector Analysis1," Journal of Comparative Economics, Elsevier, vol. 21(2), pages 207-229, October.
  30. Lin, Justin Yifu, 1992. "Rural Reforms and Agricultural Growth in China," American Economic Review, American Economic Association, vol. 82(1), pages 34-51, March.
  31. Hovey, Martin & Naughton, Tony, 2007. "A survey of enterprise reforms in China: The way forward," Economic Systems, Elsevier, vol. 31(2), pages 138-156, June.
  32. Kumar, Surender, 2006. "Environmentally sensitive productivity growth: A global analysis using Malmquist-Luenberger index," Ecological Economics, Elsevier, vol. 56(2), pages 280-293, February.
  33. Harberger, Arnold C, 1998. "A Vision of the Growth Process," American Economic Review, American Economic Association, vol. 88(1), pages 1-32, March.
  34. Alwyn Young, 2003. "Gold into Base Metals: Productivity Growth in the People's Republic of China during the Reform Period," Journal of Political Economy, University of Chicago Press, vol. 111(6), pages 1220-1261, December.
  35. Perkins, Dwight Heald, 1988. "Reforming China's Economic System," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 601-45, June.
  36. Chow, Gregory & Lin, An-loh, 2002. "Accounting for Economic Growth in Taiwan and Mainland China: A Comparative Analysis," Journal of Comparative Economics, Elsevier, vol. 30(3), pages 507-530, September.
  37. Hung-Gay Fung & Donald Kummer & Jinjian Shen, 2006. "China's Privatization Reforms: Progress and Challenges," Chinese Economy, M.E. Sharpe, Inc., vol. 39(2), pages 5-25, April.
  38. Chen, Po-Chi & Yu, Ming-Miin & Chang, Ching-Cheng & Hsu, Shih-Hsun, 2008. "Total factor productivity growth in China's agricultural sector," China Economic Review, Elsevier, vol. 19(4), pages 580-593, December.
  39. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-75, March.
  40. Subal Kumbhakar & M. Denny & M. Fuss, 2000. "Estimation and decomposition of productivity change when production is not efficient: a paneldata approach," Econometric Reviews, Taylor & Francis Journals, vol. 19(4), pages 312-320.
  41. Tuan, Chyau & Ng, Linda F.Y. & Zhao, Bo, 2009. "China's post-economic reform growth: The role of FDI and productivity progress," Journal of Asian Economics, Elsevier, vol. 20(3), pages 280-293, May.
  42. Wan, Jiayong & Yuce, Ayse, 2007. "Listing regulations in China and their effect on the performance of IPOs and SOEs," Research in International Business and Finance, Elsevier, vol. 21(3), pages 366-378, September.
  43. Nelson, Richard R. & Pack, Howard, 1998. "The Asian miracle and modern growth theory," Policy Research Working Paper Series 1881, The World Bank.
  44. Fleischer, Belton M. & Yang, Dennis T., 2003. "Labor laws and regulations in China," China Economic Review, Elsevier, vol. 14(4), pages 426-433.
  45. Mukherjee, Anit & Zhang, Xiaobo, 2007. "Rural Industrialization in China and India: Role of Policies and Institutions," World Development, Elsevier, vol. 35(10), pages 1621-1634, October.
  46. Chun-Chung Au & Vernon Henderson, 2002. "How Migration Restrictions Limit Agglomeration and Productivity in China," NBER Working Papers 8707, National Bureau of Economic Research, Inc.
  47. Lucas, Robert E, Jr, 1993. "Making a Miracle," Econometrica, Econometric Society, vol. 61(2), pages 251-72, March.
  48. Timmer, Marcel P. & Szirmai, Adam, 2000. "Productivity growth in Asian manufacturing: the structural bonus hypothesis examined," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 371-392, December.
  49. Shenggen Fan & Xiaobo Zhang & Sherman Robinson, 2003. "Structural Change and Economic Growth in China," Review of Development Economics, Wiley Blackwell, vol. 7(3), pages 360-377, 08.
  50. Young, Alwyn, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 641-80, August.
  51. Shahid Yusuf & Kaoru Nabeshima & Dwight H. Perkins, 2005. "Under New Ownership : Privatizing China's State-Owned Enterprises," World Bank Publications, The World Bank, number 7399, August.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:eee:chieco:v:22:y:2011:i:1:p:133-150. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.