IDEAS home Printed from https://ideas.repec.org/a/fip/fedbcp/y2006n51x9.html
   My bibliography  Save this article

Understanding China's capital productivity and flow

Author

Listed:
  • Lixin Colin Xu

Abstract

The evidence from China (and India) suggests that regional variations in FDI inflow and marginal productivity of capital can readily be explained by some of the usual and un-usual suspects: tax burden, corruption, expected growth rate, infrastructure, access to finance, court and custom efficiency, and quality of life. Given the vast variations in all these dimensions in various regions in China due to the decentralized nature and geography, the large variations in capital-labor ratio and marginal product of capital are perhaps not too difficult to rationalize. The fact that MPK depends on ownership, local leadership, and finance suggest that there is perhaps allocation inefficiency. What are fundamental causes, and their relative importance, and how important is the magnitude of inefficiency, however, remains to be investigated.

Suggested Citation

  • Lixin Colin Xu, 2006. "Understanding China's capital productivity and flow," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 51.
    • Handle: RePEc:fip:fedbcp:y:2006:n:51:x:9
    as

    Download full text from publisher

    File URL: https://www.bostonfed.org/-/media/Documents/conference/51/conf51e.pdf
    Download Restriction: no
    ---><---

    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:fip:fedbcp:y:2006:n:51:x:9. 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: Catherine Spozio (email available below). General contact details of provider: https://edirc.repec.org/data/frbbous.html .

    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.