Sources of China’s Economic Growth: An Empirical Analysis Based on the BML Index with Green Growth Accounting
This study develops a biennial Malmquist–Luenberger productivity index that is used to measure the sources of economic growth by utilizing data envelopment analysis and the directional distance function. Taking restrictions on resources and the environment into account based on the green growth accounting framework; we split economic growth into seven components: technical efficiency change, technological change, labor effect, capital effect, energy effect, output structure effect and environmental regulation effect. Further, we apply the Silverman test and Li-Fan-Ullah nonparametric test in combination with kernel distribution to test for the counterfactual contributions at the provincial level in China from 1998 to 2012. The empirical results show that: (1) technological progress and TFP make positive contributions to economic growth in China, while technical efficiency drags it down; (2) the effect of output structure and CO 2 emissions with environmental regulation restrain economic growth in some provinces; and (3) overall, physical capital accumulation is the most important driving force for economic take-off, irrespective of whether the government adopts environmental regulations.
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.:
- Yuan, Jia-Hai & Kang, Jian-Gang & Zhao, Chang-Hong & Hu, Zhao-Guang, 2008. "Energy consumption and economic growth: Evidence from China at both aggregated and disaggregated levels," Energy Economics, Elsevier, vol. 30(6), pages 3077-3094, November.
- Chang, Ching-Chih, 2010. "A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China," Applied Energy, Elsevier, vol. 87(11), pages 3533-3537, November.
- Shiu, Alice & Lam, Pun-Lee, 2004. "Electricity consumption and economic growth in China," Energy Policy, Elsevier, vol. 32(1), pages 47-54, January.
- Gong, Byeong-Ho & Sickles, Robin C., 1992.
"Finite sample evidence on the performance of stochastic frontiers and data envelopment analysis using panel data,"
Journal of Econometrics,
Elsevier, vol. 51(1-2), pages 259-284.
- Gong, Byeong-Ho & Sickles, Robin C., 1991. "Finite Sample Evidence on the Performance of Stochastic Frontiers and Data Envelopment Analysis Using Panel Data," Working Papers 91-12, C.V. Starr Center for Applied Economics, New York University.
- Bianchi, Marco, 1997. "Testing for Convergence: Evidence from Non-parametric Multimodality Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(4), pages 393-409, July-Aug..
- Yuko Arayama & Katsuya Miyoshi, 2004. "Regional Diversity and Sources of Economic Growth in China," The World Economy, Wiley Blackwell, vol. 27(10), pages 1583-1607, November.
- Changwen Zhao & Jiang Du, 2009. "Capital Formation and Economic Growth in Western China," Chinese Economy, M.E. Sharpe, Inc., vol. 42(6), pages 7-26, November.
- Choi, Yongrok & Zhang, Ning & Zhou, P., 2012. "Efficiency and abatement costs of energy-related CO2 emissions in China: A slacks-based efficiency measure," Applied Energy, Elsevier, vol. 98(C), pages 198-208.
- Gene M. Grossman & Alan B. Krueger, 1995.
"Economic Growth and the Environment,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 110(2), pages 353-377.
- Gene M. Grossman & Alan B. Krueger, 1994. "Economic Growth and the Environment," NBER Working Papers 4634, National Bureau of Economic Research, Inc.
- John Knight & Sai Ding, 2008. "Why has China Grown so Fast? The Role of Structural Change," Economics Series Working Papers 415, University of Oxford, Department of Economics.
- Ding, Sai & Knight, John, 2009. "Why has China Grown so Fast? The Role of Structural Change," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 7, Verein für Socialpolitik, Research Committee Development Economics.
- Zuliu F. Hu & Mohsin S. Khan, 1997. "Why Is China Growing So Fast?," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 103-131, March.
- Mohsin S. Khan & Zuliu Hu, 1996. "Why is China Growing so Fast?," IMF Working Papers 96/75, International Monetary Fund.
- Gary Koop, 1998. "Carbon dioxide emissions and economic growth: A structural approach," Journal of Applied Statistics, Taylor & Francis Journals, vol. 25(4), pages 489-515.
- Talha Yalta, A. & Cakar, Hatice, 2012. "Energy consumption and economic growth in China: A reconciliation," Energy Policy, Elsevier, vol. 41(C), pages 666-675.
- A. Talha Yalta & Hatice Cakar, 2012. "Energy Consumption and Economic Growth in China: A Reconciliation," Working Papers 1202, TOBB University of Economics and Technology, Department of Economics.
- Hailu, Atakelty & Veeman, Terrence S., 2000. "Environmentally Sensitive Productivity Analysis of the Canadian Pulp and Paper Industry, 1959-1994: An Input Distance Function Approach," Journal of Environmental Economics and Management, Elsevier, vol. 40(3), pages 251-274, November.
- Han, Gaofeng & Kalirajan, Kaliappa & Singh, Nirvikar, 2002. "Productivity and economic growth in East Asia: innovation, efficiency and accumulation," Japan and the World Economy, Elsevier, vol. 14(4), pages 401-424, December.
- Simar, Leopold & Wilson, Paul W., 1999. "Estimating and bootstrapping Malmquist indices," European Journal of Operational Research, Elsevier, vol. 115(3), pages 459-471, June.
- SIMAR, Léopold & WILSON, Paul, 1996. "Estimating and bootstrapping malmquist indices," CORE Discussion Papers 1996060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kumar, Surender, 2006. "Environmentally sensitive productivity growth: A global analysis using Malmquist-Luenberger index," Ecological Economics, Elsevier, vol. 56(2), pages 280-293, February.
- Borensztein, Eduardo & Ostry, Jonathan D, 1996. "Accounting for China's Growth Performance," American Economic Review, American Economic Association, vol. 86(2), pages 224-228, May.
- Wang, Yan & Yao, Yudong, 2003. "Sources of China's economic growth 1952-1999: incorporating human capital accumulation," China Economic Review, Elsevier, vol. 14(1), pages 32-52.
- Chow, Gregory C & Li, Kui-Wai, 2002. "China's Economic Growth: 1952-2010," Economic Development and Cultural Change, University of Chicago Press, vol. 51(1), pages 247-256, October.
- Nazrul Islam & Erbiao Dai & Hiroshi Sakamoto, 2006. "Role of TFP in China's Growth ," Asian Economic Journal, East Asian Economic Association, vol. 20(2), pages 127-159, June.
- Zou, Gaolu & Chau, K.W., 2006. "Short- and long-run effects between oil consumption and economic growth in China," Energy Policy, Elsevier, vol. 34(18), pages 3644-3655, December.
- Gregory C. Chow, 1993. "Capital Formation and Economic Growth in China," The Quarterly Journal of Economics, Oxford University Press, vol. 108(3), pages 809-842.
- Gary H. Jefferson & Albert G. Z. Hu & Jian Su, 2006. "The Sources and Sustainability of China's Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 37(2), pages 1-60.
- 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.
- Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2013. "Dynamics of productivity in higher education: cross-european evidence based on bootstrapped Malmquist indices," Journal of Productivity Analysis, Springer, vol. 40(1), pages 67-82, August.
- Aleksandra PARTEKA & Joanna WOLSZCZAK-DERLACZ, 2011. "Dynamics of productivity in higher education. Cross-European evidence based on bootstrapped Malmquist indices," Departmental Working Papers 2011-10, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
- Daniel J. Henderson & R. Robert Russell, 2005. "Human Capital And Convergence: A Production-Frontier Approach ," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(4), pages 1167-1205, November.
- Wang, Chunhua, 2011. "Sources of energy productivity growth and its distribution dynamics in China," Resource and Energy Economics, Elsevier, vol. 33(1), pages 279-292, January.
- Wei, Chu & Ni, Jinlan & Du, Limin, 2012. "Regional allocation of carbon dioxide abatement in China," China Economic Review, Elsevier, vol. 23(3), pages 552-565.
- Wang, S.S. & Zhou, D.Q. & Zhou, P. & Wang, Q.W., 2011. "CO2 emissions, energy consumption and economic growth in China: A panel data analysis," Energy Policy, Elsevier, vol. 39(9), pages 4870-4875, September.
- Chambers, Robert G. & Chung, Yangho & Fare, Rolf, 1996. "Benefit and Distance Functions," Journal of Economic Theory, Elsevier, vol. 70(2), pages 407-419, August.
- 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.
- Yanrui Wu, 2004. "Openness, productivity and growth in the APEC economies," Empirical Economics, Springer, vol. 29(3), pages 593-604, September.
- Byung M. Jeon & Robin C. Sickles, 2004. "The role of environmental factors in growth accounting," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(5), pages 567-591. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:6:y:2014:i:9:p:5983-6004:d:39966. 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: (XML Conversion Team)
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.