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Capital Formation and Economic Growth in China

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  • Gregory C. Chow

Abstract

First, production functions are estimated for China's aggregate economy and for the five sectors—agriculture, industry, construction, transportation, and commerce—using annual data (some constructed by the author) from 1952 to 1980. Then, this paper measures the contribution of capital formation to the growth of these sectors, the effects of the Great Leap Forward of 1958–1962 and of the Cultural Revolution of 1966–1976 on outputs, the impact of economic reforms since 1979 on growth, the rates of return to capital, and the effects of sectorial growths on relative prices.

Suggested Citation

  • 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.
  • Handle: RePEc:oup:qjecon:v:108:y:1993:i:3:p:809-842.
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