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Estimation of China's provincial capital stock (1952-2004) with applications

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  • Jun Zhang

Abstract

Construction of physical capital stock data is a key element for estimating production functions, measuring total factor productivity growth, and for growth accounting. Existing literature, however, shows great variations in the estimates of China's national capital stocks because different methodologies and statistical sources were used. Systematic improvements and adjustments to China's GDP accounting practices have made it possible to produce a consistent and comparable series for provincial level capital stock using the perpetual inventory method (PIM). This article recommends a standardized procedure in constructing the level of capital stock for 30 Chinese provinces from 1952 to 2004. The merit of such statistical construction, although with some drawbacks, is that the series can be easily updated to more recent years using official statistics. Applying our capital stock data, we estimate total factor productivity growth and characterize the spatial pattern across provinces in post-reform China.

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  • Jun Zhang, 2008. "Estimation of China's provincial capital stock (1952-2004) with applications," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 177-196.
    • Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:177-196
    DOI: 10.1080/14765280802028302
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    3. Qi DONG & Tomoaki MURAKAMI & Yasuhiro NAKASHIMA, 2018. "Estimating China’S Agricultural Capital Stock From 1952 To 2012," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 18(2), pages 53-70.
    4. Zhou, P. & Sun, Z.R. & Zhou, D.Q., 2014. "Optimal path for controlling CO2 emissions in China: A perspective of efficiency analysis," Energy Economics, Elsevier, vol. 45(C), pages 99-110.
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    9. Jeff Luckstead & Seung Mo Choi & Stephen Devadoss & Ron C. Mittelhammer, 2014. "China's catch-up to the US economy: decomposing TFP through investment-specific technology and human capital," Applied Economics, Taylor & Francis Journals, vol. 46(32), pages 3995-4007, November.
    10. WU, Jidong & LI, Ning & SHI, Peijun, 2014. "Benchmark wealth capital stock estimations across China's 344 prefectures: 1978 to 2012," China Economic Review, Elsevier, vol. 31(C), pages 288-302.
    11. Laurenceson, James & O'Donnell, Christopher, 2014. "New estimates and a decomposition of provincial productivity change in China," China Economic Review, Elsevier, vol. 30(C), pages 86-97.
    12. Yu, Yun & Lei, Yalin, 2017. "China's provincial exhaustible resources rent and produced capital stock—Based on Hartwick's rule," Resources Policy, Elsevier, vol. 52(C), pages 114-121.
    13. Zhang, Zibin & Ye, Jianliang, 2015. "Decomposition of environmental total factor productivity growth using hyperbolic distance functions: A panel data analysis for China," Energy Economics, Elsevier, vol. 47(C), pages 87-97.
    14. Glawe, Linda & Wagner, Helmut, 2017. "A stylized model of China’s growth since 1978," CEAMeS Discussion Paper Series 5/2017, University of Hagen, Center for East Asia Macro-economic Studies (CEAMeS), revised 2017.
    15. Yang, Mian & Yang, Fu-Xia & Chen, Xing-Peng, 2011. "Effects of substituting energy with capital on China's aggregated energy and environmental efficiency," Energy Policy, Elsevier, vol. 39(10), pages 6065-6072, October.
    16. Mr. Il Houng Lee & Mr. Murtaza H Syed & Xin Wang, 2013. "Two Sides of the Same Coin? Rebalancing and Inclusive Growth in China," IMF Working Papers 2013/185, International Monetary Fund.

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    Keywords

    capital stock; total factor productivity;

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