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Key Factors of Recent Chinese Provincial Economic Growth

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  • Mario Biggeri

Abstract

The aim of this paper is to analyse the factors that affected Chinese provincial economic growth after the reforms of the early 1980s, through a panel analysis (period 1986-2001). The production function approach focuses on human capital, 'space-serving' infrastructure, sectoral allocation of labour and institutional changes. Indices relevant for the analysis are elaborated and provincial capital stocks are estimated. The empirical results indicate the positive role of capital stock, human capital and physical infrastructure and underline that sectoral allocation of labour and institutional changes affected the level of aggregate output. A redistribution policy in favour of the inland provinces needs to be implemented so that human capital and infrastructure can be enhanced, bottlenecks can be overcome and investment can be attracted.

Suggested Citation

  • Mario Biggeri, 2003. "Key Factors of Recent Chinese Provincial Economic Growth," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 1(2), pages 159-183.
  • Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:159-183
    DOI: 10.1080/1476528032000066703A
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Mehrotra, Aaron & Peltonen, Tuomas & Santos Rivera, Alvaro, 2010. "Modelling inflation in China--A regional perspective," China Economic Review, Elsevier, vol. 21(2), pages 237-255, June.
    3. Hasan, Iftekhar & Zhou, Mingming, 2006. "Financial Sector Development and Growth: The Chinese Experience," WIDER Working Paper Series 085, World Institute for Development Economic Research (UNU-WIDER).
    4. James Laurenceson & Kam Ki Tang, "undated". "The FDI-Income Growth Nexus: a review of the Chinese experience," EAERG Discussion Paper Series 0905, School of Economics, University of Queensland, Australia.
    5. Hasan, Iftekhar & Wachtel, Paul & Zhou, Mingming, 2009. "Institutional development, financial deepening and economic growth: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 157-170, January.
    6. Iftekhar Hasan & Haizhi Wang & Mingming Zhou, 2009. "Do better institutions improve bank efficiency? Evidence from a transitional economy," Managerial Finance, Emerald Group Publishing, vol. 35(2), pages 107-127, January.
    7. Chang, Philip C. & Jia, Chunxin & Wang, Zhicheng, 2010. "Bank fund reallocation and economic growth: Evidence from China," Journal of Banking & Finance, Elsevier, vol. 34(11), pages 2753-2766, November.

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