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New estimates and a decomposition of provincial productivity change in China

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  • Laurenceson, James
  • O'Donnell, Christopher

Abstract

Productivity and efficiency change lies at the heart of achieving sustainable growth in China. This paper computes and decomposes provincial-level Färe–Primont TFP indexes for the period 1978 to 2010. On average across provinces, we find evidence of rapid TFP growth mostly due to technical change, but with changes in scale–mix efficiency also playing a supplementary role. Considerable heterogeneity from province to province is also documented both with respect to the rate of TFP growth and its components. Policy implications are discussed.

Suggested Citation

  • Laurenceson, James & O'Donnell, Christopher, 2014. "New estimates and a decomposition of provincial productivity change in China," China Economic Review, Elsevier, vol. 30(C), pages 86-97.
  • Handle: RePEc:eee:chieco:v:30:y:2014:i:c:p:86-97
    DOI: 10.1016/j.chieco.2014.05.016
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    Cited by:

    1. John Gibson & Chao Li, 2018. "The “Belt and Road Initiative†and comparative regional productivity in China," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 5(2), pages 168-181, May.
    2. C.J. O'Donnell & S. Fallah-Fini & K, Triantis, 2011. "Comparing Firm Performance Using Transitive Productivity Index Numbers in a Meta-frontier Framework," CEPA Working Papers Series WP082011, School of Economics, University of Queensland, Australia.
    3. Viet Nguyen, Thanh & Simioni, Michel & Le Van, Dao, 2019. "Assessment of TFP change at provincial level in Vietnam: New evidence using Färe–Primont productivity index," Economic Analysis and Policy, Elsevier, vol. 64(C), pages 329-345.
    4. Constant, Labintan Adeniyi & Shijun, Ding, 2012. "Benin Agriculture Productivity and profitability Measurement," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126748, International Association of Agricultural Economists.
    5. Ioanna Reziti & Leonidas Zangelidis, 2019. "Regional Productivity and Efficiency Growth in Greek Agriculture," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 3-20, October-D.
    6. James Laurenceson, 2016. "Discussion of China's Institutional Impediments to Productivity Growth," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.), Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    7. María Molinos-Senante & Alexandros Maziotis & Ramon Sala-Garrido, 2017. "Assessment of the Total Factor Productivity Change in the English and Welsh Water Industry: a Färe-Primont Productivity Index Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2389-2405, June.
    8. Ding Lu, 2011. "Transition of China’s growth pattern," Frontiers of Economics in China, Springer;Higher Education Press, vol. 6(4), pages 535-555, December.
    9. Dai, Xiaoyong & Cheng, Liwei, 2019. "Aggregate productivity losses from factor misallocation across Chinese manufacturing firms," Economic Systems, Elsevier, vol. 43(1), pages 30-41.

    More about this item

    Keywords

    China; Province; Productivity; Efficiency;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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