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Sources of Structural Change and Output Growth of China's Economy: 1987-92

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  • Aying Liu

Abstract

This paper examines the sources of structural changes in output growth of China’s economy over 1987–92 using a decomposition method within the input-output (IO) framework. The model uses three comparable IO tables of 1987, 1990, and 1992 as the main data sources; it accounts for output changes from a demand side perspective and decomposes the growth of output into consumption demand, investment demand, export, import, and intermediate use (indicated by changes in IO coefficients). Special attention is given to identifying the effects of government policies on economic growth and structural change. It is found that overall output growth was multi-components driven rather than single-factor led; the share of the contribution to output growth from consumption and investment expansion declined and that from export and import increased. Whilst the efficiency of factor utilisation remains an issue of further research, a remarkable rise in IO coefficient share indicates a deepening and strong interdependence between industrial sectors over the data period. Copyright Kluwer Academic Publishers 1998

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  • Aying Liu, 1998. "Sources of Structural Change and Output Growth of China's Economy: 1987-92," Economic Change and Restructuring, Springer, vol. 31(2), pages 95-116, May.
    • Handle: RePEc:kap:ecopln:v:31:y:1998:i:2:p:95-116
    DOI: 10.1023/A:1003435408921
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    References listed on IDEAS

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    1. George Korres, 1996. "Sources of structural change: an input-output decomposition analysis for Greece," Applied Economics Letters, Taylor & Francis Journals, vol. 3(11), pages 707-710.
    2. Shahid Yusuf, 1994. "China's Macroeconomic Performance and Management during Transition," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 71-92, Spring.
    3. Harrigan, F J & McGilvray, J W & McNicoll, I H, 1980. "A Comparison of Regional and National Technical Structures," Economic Journal, Royal Economic Society, vol. 90(363), pages 795-810, December.
    4. Richard Harris & Aying Liu, 1998. "Input-Output Modelling of the Urban and Regional Economy: The Importance of External Trade," Regional Studies, Taylor & Francis Journals, vol. 32(9), pages 851-862.
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